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?
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 host perspective
Isolate and examine SRC influence
Redefine the problem without the SRC influence
What does preliminary screening consist of?
Business environment risk index (BERI)
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What does fine grained screening consist of?
What is BERI rating?
How does the BERI score work?
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
What are the seven principal sources of export finance:
- Commercial banks
- export credit insurance
- factoring
- forfeiting
- bonding
- leasing
- counter-trade
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