Explain briefly about the ethnocentric global pricing policy
What will be an ideal response?
The ethnocentric global pricing policy requires that the price of an item be the same around the world and that the importer absorb freight and import duties. This approach has the advantage of extreme simplicity because no information on competitive or market conditions is required for implementation. The disadvantage of this approach is directly tied to its simplicity. Extension pricing does not respond to the competitive and market conditions of each national market and, therefore, neither maximizes the company's profits in each national market nor globally.
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All licensed brokers must establish a trust account before accepting money from the public.
a. true b. false
A product is currently made in a process-focused shop, where fixed costs are $9,000 per year and variable costs are $50 per unit. The firm is considering a fundamental shift in process, to repetitive manufacturing
The new process would have fixed costs of $90,000, and variable costs of $5. What is the crossover point for these processes? For what range of outputs is each process appropriate?