6.compettition is more severe in foreign markets The country of origin price must be low to compensate the high cost of moving goods overseas. Foreign customers should not be changed for puerly domestic expenses, such as advertising and delivery in the home country. Export sales are really extra, or incremental, sales, so only incremental costs plus profit must be covered (export pricing based on incremental costs may violate antidumping laws, which exist in most countries).
Ex.
The American exporter were unsuccessful in dealing directly through small distributors, since the industrial product users were concerned about the risk of isolating themselves from their main source of supply (Japanese) if they ordered directly from American exporters. The power of competition depends on the concentration of retailers, which is likely to differ across cultures
6.compettition is more severe in foreign markets The country of origin price must be low to compensate the high cost of moving goods overseas. Foreign customers should not be changed for puerly domestic expenses, such as advertising and delivery in the home country. Export sales are really extra, or incremental, sales, so only incremental costs plus profit must be covered (export pricing based on incremental costs may violate antidumping laws, which exist in most countries).
Ex.
The American exporter were unsuccessful in dealing directly through small distributors, since the industrial product users were concerned about the risk of isolating themselves from their main source of supply (Japanese) if they ordered directly from American exporters. The power of competition depends on the concentration of retailers, which is likely to differ across cultures
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