GMS 522 Lecture Notes - Lecture 11: Profit Margin, Global Marketing, Market Power

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 522
• Professor: Carlyle Farrell

Document Summary

Setting global prices: must consider a number of factors in setting global prices (internal some measure of control; exogenous no measure of control) Demand conditions: natu(cid:396)e of de(cid:373)a(cid:374)d fo(cid:396) the fi(cid:396)(cid:373)(cid:859)s p(cid:396)odu(cid:272)t also has a(cid:374) i(cid:373)pa(cid:272)t o(cid:374) its p(cid:396)i(cid:272)i(cid:374)g st(cid:396)ateg(cid:455) If de(cid:373)a(cid:374)d fo(cid:396) the fi(cid:396)(cid:373)(cid:859)s p(cid:396)odu(cid:272)t is i(cid:374)elasti(cid:272), p(cid:396)i(cid:272)e (cid:272)ha(cid:374)ges (cid:449)ill ha(cid:448)e little impact on the quantity demanded by consumers, and firm will have substantially more pricing power in marketplace. Competitive environment: ability of the firm to set prices in international markets will be heavily influenced by the competitive environment, competitive environment determines where between these two extremes prices are actually likely to settle. Multinational pricing strategies: number of options available when pricing products in international markets. Terms of sale: clear understanding of the responsibilities of both the exporter and importer and where in the process title changes hands. Chapter 11: global pricing strategies: prices are quoted using a set of standardized terms of sale referred to as international.