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Internacional pricing (Variables to set export prices. (Cost (Freight,…
Internacional pricing
Unique price
Identical products must have the same price in terms of the same currency. If there are no transportation costs.
Purchasing power parity
It is the relationship between the price levels of two countries and the exchange rates between their currencies.
Characteristics:
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In Mexico, it is measured by the National Consumer Price Index (NCPI).
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Barter concept
Transaction based on an exchange of goods, without any monetary currency, if not in kind.
For the purposes of the price and cost of barter products, there are no defined parameters, since the value of the goods defer from company to company and from country to country.
Dumping
It is an international price discrimination that occurs when a company sets a lower price to foreign buyers for a good equal to or comparable to the good that domestic buyers have.
Types of dumping
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Persistent dumping: When a monopolist uses profit-maximizing policies in situations where the market is disconnected by transportation costs, barriers, and tariffs. etc.
Official dumping: Refers to the export subsidy and the company that initiates the unfair practice is benefited by selling sustained merchandise.
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For there to be dumping
The industry must be imperfectly competitive, so companies set prices and do not take the market price as given.
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Subsidies.
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Types
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Subsidies subject to action: They do not adversely affect or contribute to any specific value action that cannot be ruled out.