Framework for Setting International Prices
Managers examine the suitability of prices at several levels in the international distribution channel—importers, wholesalers, retailers, and end users—and then set prices accordingly. Exhibit 16.5 presents a systematic approach for managers to use in setting international prices.25
Exhibit 16.5
Key Steps in International Price Setting
Let’s illustrate the international pricing framework with an example. Suppose a leading U.S. musical instrument manufacturer, Melody Corporation, wants to begin exporting electric guitars to Japan and needs to set prices. Melody decides ...
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