Competition is serious business and sometimes fierce. The stakes are high. Unless the firm has a monopoly, pricing is one area that may be intensely competitive, and not all competition is fair or legal. When considering pricing strategy, the international business manager must be aware of the strategies of other firms when setting the firm's own strategy. Some pricing strategies of others may violate antidumping rules and other regulations. As managers set prices under the strategy, they must be aware of many different dynamics.
Pricing is an important part of the marketing mix. Firms must look at charging different prices in different markets, pricing as a competitive weapon, and the regulatory factors including government control and anti-dumping regulations. All will affect the design and implementation of pricing strategy.
Determine if it is a consideration of price discrimination, strategic pricing, or regulatory influence. Then, drag the item to the appropriate category on the chart.

Price Discrimination

This refers to the pricing of the same good or at least similar goods at different prices to different demographics/markets by the same Supplier/Producer.

a. Price Elasticity of Demand falls here because it shows how people's demand for a good changes in reaction to a change in price.

b. National Market Separate

Separating the National Market allows for one supplier to offer goods at different prices in the various markets.

Strategic Pricing

This refers to the policies and strategies implemented to enable a company sell it's goods and services.

a. Predatory Pricing

This is a strategy of pricing goods so low that other firms cannot compete and then leave the market making a firm a Monopoly.

b. Multipoint Pricing

Competition amongst rivals like Pepsi and Coca-Cola in different countries causing prices in other countries to react.

c. Experience Curve Pricing

This is where prices for a good are set at lower than average because it is believed that costs will decrease as production experience increases due to efficiency.

Regulatory Influence

This refers to the governing of the pricing market by the Government to ensure that the ordinary citizens are not ripped off by pricing strategies implemented by companies.

a. Antidumping regulations

These are laws that are aimed at stopping foreign companies from exporting goods at a lower than average price to a country where the prices are higher.

b. Competition Policy

The Government might govern how companies compete in a market in order to reduce Monopolistic influences and encourage healthy competition for the benefit of the consumer.

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