9. Penetration Pricing: This is used to stimulate market growth and capture market share by
deliberately offering products at low prices
10. Variable-Cost Pricing: firms regard foreign sales as bonus sales and assume that any return
over their variable cost makes a contribution to net profit
11. Dumping: One approach classifies international shipments as dumped if the products are
sold below their cost of production
The other approach characterizes dumping as selling goods in a foreign market below the price of the same goods in the home market
Two approach classify dumping : 对倾销有两种解释：
1 The products are sold below their cost of production in international market 2 Selling goods overseas at a lower price than at home nation
12. A countervailing duty or minimum access volume (MAV), which restricts the amount a
country will import, may be imposed on foreign goods benefiting from subsidies whether in production, export, or transportation 13.
简答：
1. Discuss the major problems facing a company that is countertrading. （反向贸易的危
害） ? The critical problems confronting the seller in a countertrade negotiation is having the
expertise to determine the value and the potential demand of the goods offered. Frequently, there is inadequate time to conduct a market analysis. ? In fact, it is not unusual to have sales negotiations almost completed before countertrade is
introduced as a requirement. Barter houses, specialized in trading goods acquired through barter arrangement, are the primary outside source of aid for companies beset by the uncertainty of a countertrade. Barter houses, most of which are found in Europe, can find a market for bartered goods, but the time it may take can put a financial strain on a company which has to have its capital tied up for a longer period than normal. ? In the long run, if companies are going to be involved in countertrades, they should establish
personnel who can effectively evaluate the products to be traded.
2. 几种定价方法(P355)（Approaches to international pricing）
a. Variable-cost pricing b. Full-cost pricing c. Skimming pricing d. Penetration pricing e. Transfer pricing
3. What cause Price escalation and how to reduce that?
Causes:
a. Taxes, tariffs, and administrative costs
b. Inflation c. Deflation
d. Exchange rate fluctuations e. Carrying currency values
f. Middleman and transportation costs Reduce:
a. Lowering cost of goods b. Lowering tariffs
c. Lowering distribution costs
d. Using foreign trade zones to lessen price escalation e. dumping 4. Pricing Objectives
In general, price decisions are viewed in two ways:
a) Pricing as an active instrument of accomplishing marketing objectives, or b) Pricing as a static element in a business decision
The more control a company has over the final selling price of a product, the better it is able to achieve its marketing goals
It is not always possible to control end prices
Broader product lines and the larger the number of countries involved, the more complex the process of controlling prices charged to the end user
5. How to reduce price escalation ? 如何降低价格升级?
lower costs of goods 降低制造成本 lower tariffs 降低关税
lower distribution costs 降低分销成本
use foreign trade zones to lessen price escalation 借助自由贸易区降低价格升级 dumping 倾销
6. What are the factors causing and effecting of price escalation ?造成和影响价格升级的
因素有哪些？357 403 Costs of exporting 出口成本
Taxes, tariffs, and administrative costs 税收 关税和行政管理费 Inflation 通货膨胀 Deflation 通货紧缩
Exchange rate fluctuations 汇率波动 Varying currency values 币值变动
Middleman and transportation costs 中间商和运输成本 7. Transfer Pricing Strategy
Prices of goods transferred from a company’s operations or sales units in one country to its units elsewhere，
c) known as intracompany pricing or transfer pricing
d) May be adjusted to enhance the ultimate profit of company
Benefits
e) Lowering duty costs
f) Reducing income taxes in high-tax countries
g) Facilitating dividend repatriation when dividend repatriation is curtailed by government policy Objectives
h) Maximizing profits for corporation i) Facilitating parent-company control
j) Providing all levels of management control over profitability
Arrangements for pricing goods for intracompany transfer
k) Sales at the local manufacturing cost plus a standard markup
l) Sales at the cost of the most efficient producer in the company plus a standard markup
m) Sales at negotiated prices
n) Arm’s-length sales using the same prices as quoted to independent customers