Pricing in the world markets

Date: 2015-10-07; view: 429.

Theme №2.

Theme №1. The essence and role of international trade in the world economy

PLAN OF PRACTICAL CLASSES

1. Concept and essence of international trade. Commodity and geographical structure of international trade. Subjects and objects, types of international trade.

2. International Job Specialization (IJS). Specialization and cooperation.

3. World market. The opened and closed economy.

Questions for discussion:

- What is the international economic security and national security?

- Tell historical stages of development of foreign trade and its description.

- What is the commodity? Tell the geographical structure of foreign trade and how they changed over the last 50 years?

- Tell about current trends of development of foreign trade.

- Tell the types of International Job Specialization.

- Tell the industrial developed countries, countries with transitional economy, developing countries and new industrial countries.

- What are the internationalization and globalization and its characteristics?

1. Concept of the world prices. Classification of the prices in the world market.

2. Main types of the prices in international trade: settlement and published.

3. Transfer pricing in the world markets. Practice and features of transfer pricing in the world markets.

Questions for discussion:

- Should there be a single price or multiple pricing?

- Should prices change in various geographical areas, referred to as zone pricing?

- What prices are competitors charging?

- Do you use a price skimming strategy or a penetration pricing strategy?

- What image do you want the price to convey?

- How important are customer price sensitivity (e.g. "sticker shock") and elasticity issues?

- Are there legal restrictions on retail price maintenance, price collusion, or price discrimination?

- Are there transfer pricing considerations?

- What is the chance of getting involved in a price war?

- Are there joint product pricing considerations?