Why is it so difficult to control consumer prices when selling overseas?
There are many variables which must be considered when attempting to control consumer prices overseas. Among these are: tariffs on imports, "dumping" tariffs, sales taxes, distributive channel costs, added middlemen costs, and shipping costs. It is very difficult to control consumer prices when selling overseas.
Price escalation is one of the main reasons, as prices escalate differently. Some profiteering is also found in some countries, thus upsetting any consumer price control. Dumping, being defined differently, is treated differently under various laws making for more varied prices. Firms operating overseas have less ways to protect themselves from price variations and fluctuating exchange rates also tend to increase price fluctuations. In addition, many retailers overseas don't like price competition and avoid it if possible by raising or lowering their prices.
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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?
- 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?
- What are the causes and solutions for parallel imports and their effect on price?