Export Pricing Strategy n Cost-oriented pricing Standard worldwide price- regardless of buyer's location in the market(s) Dual pricing differentiates between domestic and export prices Cost-plus method allocates domestic and foreign costs to the product Marginal cost method considers direct costs of producing and selling exports as floor(lowest) price Market-differentiated pricing based on the dynamics of the marketplace changes in competition, exchange rates, etc Copyright 2001 by Harcourt, Inc. All rights reservedCopyright © 2001 by Harcourt, Inc. All rights reserved. 11-5 Export Pricing Strategy Cost-oriented pricing • Standard worldwide price- regardless of buyer’s location in the market(s) • Dual pricing differentiates between domestic and export prices – Cost-plus method allocates domestic and foreign costs to the product. – Marginal cost method considers direct costs of producing and selling exports as floor (lowest) price. Market-differentiated pricing • based on the dynamics of the marketplace – changes in competition, exchange rates, etc