Free Pricing

Companies should be free to determine product as they motive to for international markets.

Pricing decisions are a critical piece of the marketing mix. The general rule of pricing is that over the large run, prices moldiness go on costs and may never exceed those of the competitors. The objective is to charge what a product is worth to the node and cover all costs and provide a coast for profit in the process. International pricing is much to a greater extent complicated by the fact that an international business must conform to different rule-making bodies and to different competitive situations in individually country. Today we will not discuss the general strategies of pricing.

What we care ab step to the fore is should companies be free to price product as they want to for international markets? Going to the international market, companies find out that it is more complicated to price their product. Their pricing systems and policies must excessively be consistent with other uniquely global constraints. In addition to the diversity of international markets in all tierce basic dimensions of cost, competition, and demand, international marketers are also confronted by foreign government tax policies and claims as well as versatile types of price controls. These include dispose legislation, resale price maintenance legislation, price ceilings and general reviews of price levels. The first important resign is dumping.

cast aside Gatts 1979 antidumping code defined dumping as the sale of an trade product at a price lower than that usually charged in a domestic market or country of origin. In addition, many countries have their own policies and procedures for defend national companies form dumping. Dumping is a major issue in the Uruguay Round of GATT negotiations. U.S is a country that always complains well-nigh the dumping from various countries. Such as many dumping issues involved manufactured goods from Far East.

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