Pricing Strategies of Multinationals for Global Markets – Considerations and Initiatives: Pricing Strategies for Global Markets

Source Title: International Journal of Business Strategy and Automation (IJBSA)1(1)

ISSN: 2644-2094|EISSN: 2644-2108|EISBN13: 9781799803539|DOI: 10.4018/IJBSA.2020010102

MLA

Mandal, Pratap Chandra. "Pricing Strategies of Multinationals for Global Markets – Considerations and Initiatives: Pricing Strategies for Global Markets." IJBSA vol.1, no.1 2020: pp.24-36. http://doi.org/10.4018/IJBSA.2020010102

APA

Mandal, P. C. (2020). Pricing Strategies of Multinationals for Global Markets – Considerations and Initiatives: Pricing Strategies for Global Markets. International Journal of Business Strategy and Automation (IJBSA), 1(1), 24-36. http://doi.org/10.4018/IJBSA.2020010102

Chicago

Mandal, Pratap Chandra. "Pricing Strategies of Multinationals for Global Markets – Considerations and Initiatives: Pricing Strategies for Global Markets," International Journal of Business Strategy and Automation (IJBSA) 1, no.1: 24-36. http://doi.org/10.4018/IJBSA.2020010102

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Abstract

Multinationals require analyzing a number of pricing considerations while competing in globally. Firms require setting different and appropriate prices of their products for each of the markets they operate in. The price of a product is an important criterion while formulating strategies for global markets as it determines to a large extent whether a product will get sold or not. Companies contend with a number of issues in pricing for global markets like geographical pricing, price escalation, transfer prices, dumping charges, pricing for emerging markets, and pricing for individuals at the bottom of the pyramid. There are several legal and ethical aspects in pricing for global markets. These include deceptive or illegal prices – deceptive reference pricing, loss leader pricing, and the bait and switch approach towards pricing; predatory pricing; price discrimination; and price fixing. Each of the issues is discussed in detail. The article focuses on how multinationals should handle and overcome them, establish their businesses in global markets, and generate substantial revenues and profits.