ABSTRACT
Pricing the product is a tricky problem in a domestic market. In international marketing it can be a nightmare. The trouble is that the price is a quantitative and unequivocal figure. It is there to be compared and analysed by competitors, distributors and consumers alike. The mismanagement of a firm's pricing policy can easily lead to:
Substantial variations in the price of the same product in different countries.
Pressures for price reductions and/or bigger discounts resulting from such variations.
The development of a ‘grey market’ by unscrupulous traders. A grey market is created where the product is purchased in a cheap market with the view of being sold in markets enjoying higher prices.
