Unraveling the Mystique of Export Pricing S. Tammer Cavusgil

Factors in Export Pricing  Nature of the product/industry  Location of the production facility  Chosen system of distribution  Location and environment of the foreign market  US government regulations  Attitude of the firms management

Alternative approaches  Rigid cost-plus strategy  Flexible cost-plus strategy  Dynamic incremental Strategy

Decision process Verify export market potential Determine company sales potential at given prices Analyze import, distribution, and transaction barriers Examine corporate goals and preference for pricing strategy Select pricing strategy

Check consistency with current price setting Implementation: Select tactics, distributor prices, and end user prices Monitor export performance and make adjustments as necessary

Transfer Pricing by Multi- national Marketers: Risky Business John P. Fraedrich Connie Rae Bateman

Transfer pricing methods  Comparable/Uncontrollable Price Method  Resale Price Method  Cost-Plus Method  Other Methods