IM - Pricing

Global pricing

The process of setting the price of a product or service for sale in international markets, taking into account costs, competition, currency exchange rates, tariffs, and local demand.

Uniform (standardized) pricing

A pricing strategy where a company sets the same price for a product in all countries, regardless of local market conditions.

Differential (adaptive) pricing

A pricing strategy where a company sets different prices for the same product in different countries to reflect local market conditions, incomes, and competition.

Cost-plus pricing for exports

A pricing method where a company sets its export price by adding the cost of shipping, insurance, duties, and a markup to the domestic price.

Price skimming abroad

The practice of charging a high initial price for a new product in a foreign market and lowering it over time as competition increases.

Penetration pricing abroad

The practice of setting a low initial price in a foreign market to quickly gain market share and build customer loyalty.

Dumping

The practice of selling a product in a foreign market at a price lower than its home market price or its cost of production, often considered unfair trade.

Tariffs

Taxes imposed by a government on imported goods, which raise the final price of those goods in the importing country.

Exchange rate

The rate at which one country's currency can be exchanged for another's, which affects the price of imported and exported goods.

Landed cost

The fees, taxes, and transportation charges added to a product's price when it crosses international borders.