What factors makes international pricing and distribution more complex than domestic pricing and distribution?
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: International pricing is difficult because of different degrees of governmental intervention; greater diversity of markets; price escalation of exports; changing values of currencies; differences in fixed versus variable pricing practices; and relations with suppliers. MNEs also find distribution one of the most difficult functions to standardize internationally, for several reasons. Each country has its own distribution system, which an MNE finds difficult to modify because it is entwined with the country's cultural, economic, and legal environments. Some of the factors that influence the distribution of goods in a given country are citizens' attitudes toward owning their own store, the cost of paying retail workers, legislation restricting store sizes and operating hours, different effects of laws on chain stores and individually owned stores, the trust owners have in their employees, the efficacy of the postal system, the quality of the infrastructure system, and the financial ability to carry large inventories.
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