What is demand elasticity?
Refers to how demand for a product changes due to minor changes in the price. High elasticity means larger changes can occur without affecting the demand, whereas low elasticity means demand is very sensitive to changes in price.
Standardized/undifferentiated products are generally more sensitive to changes in price than differentiated products.
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Pricing for International Markets
- 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?
- How can a marketer adjust prices to accommodate exchange-rate fluctuations?
- 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?