Pricing for global markets

Pricing is complex and generally subjective in domestic business. It is even more difficult in international business, with multiple currencies, trade barriers, additional cost considerations, and longer distribution channels. Based on a review of corporate best practices, this article proposes a set of decision rules and processes for international price setting. Specific topics for discussion include: key considerations in international pricing; the location of pricing responsibility in the multinational corporation; approaches to price setting; and transfer pricing practices.