หน้า 6
The economic environment of the foreign or host country influences pricing decisions. It has a significant impact on firm's costs, determines demand potential for a particular product/service, in addition to the prices that local customers can afford and are willing to pay (Whitelock and Pimblett 1997). For example, some products that are considered essential in western countries, are viewed as luxury items in my country (Rwanda), and most of the sub-Saharan African countries. This confirms the hypothesis that the demand for a product/service at different price levels is a function of the purchasing power of targeted customers, determined by the level of economic development of the country (Jain 1989).