Pricing decisions and terms of doing business

8 important questions on Pricing decisions and terms of doing business

How is decided which markets to enter?

1 Global marketing research
2 Economic forces and political/legal forces
3 Sociocultural forces


Or Preliminary screening and fine grained screening

How should companies manage cultural differences?

Define problem from home perspective
Define problem from host perspective
Isolate and examine SRC influence
Redefine the problem without the SRC influence

What does preliminary screening consist of?

Political risk
Business environment risk index (BERI)
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What does fine grained screening consist of?

Involves firms competences and competitive power

What is BERI rating?

0-4

How does the BERI score work?

Max 100 points. >80 favourable environment for investors
70-79: not so favourable
55-69: immature economy, NIC
40-54: High risk country, less developed country
<40 Very high risk, only commit capital for extraordinary reason

Export credit insurance

Is available to most exporters through governmental export credit agencies or through private insurers

What are the seven principal sources of export finance:

  1. Commercial banks
  2. export credit insurance
  3. factoring
  4. forfeiting
  5. bonding
  6. leasing
  7. counter-trade

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