Pricing for export markets is generally more complex than pricing for domestic commercial activity. What pricing...

Pricing for export markets is generally more complex than pricing for domestic commercial activity. What pricing strategies are available to exporters seeking to enter and develop new markets ?

Solutions

Expert Solution

Pricing strategies which are available to the exporters seeking to enter and develop new markets will always be considering various kinds of international factor while determining the overall prices and these factors including the exchange rate differentiations and level of interest rates in that particular economy along with the inflation rate in that particular economy and there will be consideration in relation to the Macro factors along with the global factors before determination of a price and it will generally be considered after ascertainment of additional cost with the company is incurring and the additional labour costs which the company is incurring in producing the product in that country or the company will be specifically trying to consider various strategies like-

A . Cost plus pricing strategies- cost plus pricing strategies in relation to the international market is a one of its own form of strategy which will help the organisation to fix the overall price of the product based upon the total cost and then it will try to add a certain specific amount of margin which the company wants to earn on its products, and in international field where there is a export relative scenario and there is a high risk exposure than the company should be trying to ascertain the margin and it will be trying to factor for various kinds of exchange rate exposure and interested factors along with inflation factors and currency factors before determination of the margin and adding it to the cost price

B. Marginal cost pricing is another form of pricing which is followed in order to enter the cut throat competition of export business in international Arena and it will be tried to penetrate through the market and maximize the rate of return by entering into the foreign market and it will be trying to manage the course through marginal factor by sir training of various kinds of transaction cost along with translation cost and risk associated with doing business in other countries.

these are the pricing strategies which are available to the exporter who are seeking to enter into the foreign companies through export

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

Target Pricing (Cost and Profit Considerations) How is target pricing significantly more complex and sophisticated than...

Target Pricing (Cost and Profit Considerations) How is target pricing significantly more complex and sophisticated than cost plus pricing? What’s involved in the “matrix” of costs, design, processes, market analysis, customer expectation, and profitability objectives? How is the process executed to optimize these relationships?

Explain why e-Business scenarios are generally more complex than traditional business scenarios. Discuss the interrelationships of...

Explain why e-Business scenarios are generally more complex than traditional business scenarios. Discuss the interrelationships of the relevant elements, such as business goals, organization of business, and the use of information technology.

What is the effect of the export ban on domestic prices, domestic demand and supply, consumer...

What is the effect of the export ban on domestic prices, domestic demand and supply, consumer surplus, producer surplus and total welfare in exporting country? Explain with help pf demand and supply curve.

Well-developed explaination: Indentify all of the key elements of pricing in export markets explain in detail....

Well-developed explaination: Indentify all of the key elements of pricing in export markets explain in detail. Cost-Based Pricing, The Marginal Approach to Pricing, Skimming versus Penetration Pricing, Demand-Based Pricing and Competitive Pricing.

What is the primary reason that addition and subtraction are considered more complex than multiplication and...

What is the primary reason that addition and subtraction are considered more complex than multiplication and division with floating-point representations? What are subnormal numbers, and how do subnormal numbers help reduce the impact of underflow?

The US is a net debtor because they import more than they export? Foreigners own more...

The US is a net debtor because they import more than they export? Foreigners own more US assets than the US owns foreign assets. Correct? Is a net debtor always running a current account deficit?

Why is penetration pricing more likely than skim pricing to raise a company's or a business...

Why is penetration pricing more likely than skim pricing to raise a company's or a business unit's operating profit in the long run? giver some example.

What are some of the reasons Medicaid managed care is more complex than developing private sector...

What are some of the reasons Medicaid managed care is more complex than developing private sector managed care programs and has led to more specialized firms dominating this market?

A tariff on imports of a product hurts domestic consumers of this product more than it...

A tariff on imports of a product hurts domestic consumers of this product more than it benefits domestic producers of this product." Do you agree or disagree? Why? 250 words pplease

“A tariff on imports of a product hurts domestic consumers of this product more than it...

“A tariff on imports of a product hurts domestic consumers of this product more than it benefits domestic producers of the product.” Do you agree or disagree? Why? What is the formula for the nationally optimal tariff? What is the optimal tariff if the foreign supply of our imports is infinitely elastic? Explain.

Subjects