ABSTRACT
Solar photovoltaics (SPV) is an important technology that produces electricity from sunlight. China has dramatically increased its manufacturing capacity of SPV products over the last few years. It exports most of its production at declining prices to Europe and the United States. Price is an important factor in determining a firm’s ability to compete in world markets. Export prices should be high enough to make a reasonable profit and yet low enough to be competitive in the market. Products rarely sell on one factor alone, and the exporter should be competitive on more than just price. Sources of nonprice competition include reliable delivery, short delivery time, product reliability, product quality, as well as any other feature considered unique by customers. A company needs to develop a workable guideline with respect to pricing of its product or service in export markets. A number of variables influence the level of export prices.
