How can a marketer adjust prices to accommodate exchange-rate fluctuations?
Exchange rate fluctuations refers to how all major currencies nowadays are floating freely relative to one another, and how no one is quite sure of the value of any currency in the future. If exchange rates are not carefully considered in long-term contracts, companies find themselves unwittingly giving 15-20 per cent discounts. Hedging means insuring against a negative currency rate, and is becoming more common as a means of ensuring no discounts are given unwittingly.
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Pricing for International Markets
- What is demand elasticity?
- What factors influence international pricing?
- Which out of the four types of countertrade is the most beneficial to the seller?
- Why is counter trade increasing?
- Why do governments scrutinize transfer pricing arrangements so carefully?
- What are the alternative objectives in setting transfer prices?
- In what various ways does the government set prices? Why do they engage in such activities?
- Why has dumping become such an issue in recent years?
- Do value-added taxes discriminate against imported goods?
- Why are companies generally not "allowed" to perform price fixing, but governments are?
- How can the problem of price escalation be counteracted?
- What is transfer pricing?
- What is dumping?
- What is price escalation?
- What is skimming?
- What is parallel imports?
- What are the causes of price escalation? Do they differ for exports and goods produced and sold in a foreign country?
- Why is it so difficult to control consumer prices when selling overseas?
- What are the causes and solutions for parallel imports and their effect on price?