How do foreign government regulations affect pricing and promotion for international businesses?
Chapter 17 Global Marketing
#Daniels #15edition #GlobalMarketing #Chapter17International Business: Environments and Operations, 15e, Global Edition (Daniels et al.)
Daniels, 15edition, Global Marketing, Chapter 17
Answer: Government regulations may directly or indirectly affect the prices that companies charge. International pricing is further complicated because of currency value fluctuations, differences in product preferences, price escalation in exporting, and variations in fixed versus variable pricing practices. In regards to promotion, what is legal advertising in one country may be illegal elsewhere. The differences result mainly from varying national views on consumer protection, competitive protection, civil rights promotion, standards of morality and behavior, and nationalism. For example, there are many products that some societies view as being in sufficiently bad taste that they restrict advertisement of them, such as whether they can be advertised on television and, if so, at what time. In terms of consumer protection, policies differ on the amount of deception permitted and what can be advertised to children.
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