Pricing, an important decision in any business, be it domestic or international directly affects revenue and thus profitability. Further, appropriate pricing aids proper growth as development of mass market depend to a large extent of price.

To what extent the setting of uniform prices is desirable in worldwide market is a question that multinational companies perpetually face. Some international markets argue for uniform prices. Others, however, observe that obvious differences in the market of various countries favor the use of internationally differentiated pricing policies. The decision between uniform and differentiated pricing would be dictated by such factors as competitive conditions, lifestyle position of the product, product diffusion process, regulatory considerations, channel structure, company objectives, and consumer price perceptions. If the competitive position of the firm does not vary from market to market, it may be worthwhile to pursue a uniform pricing strategy. A firm essentially in a monopoly or differentiated oligopolistic situation may price its predict uniformly on global scale.

For more help in Importance Of Pricing click the button below to submit your homework assignment