Term
| aggressive export pricing |
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Definition
| pricing strategy that prices products below market price to penetrate new markets |
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| duties that must be paid by firms as a punishment for engaging in unfair price competition |
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| simple nonmonetized exchange of goods and services between 2 parties |
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Definition
| agreements whereby the seller builds and provides a turnkey plant and is paid up front part of the cost of plant in an agreed on convertible currency; in return, seller agrees to purchase specific quantities of plant's output over an extended period of time |
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Term
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Definition
| complex form of countertrade whereby countries trade products up to a certain amount stated in a particular, mutually agreed on hard currency and within a given time frame, and, when an imbalance occurs and one country owes money to the other, swing credits are paid in an agreed on hard currency, known as the clearing currency; also called a clearing agreement |
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Definition
| agreed on currency used to pay swing credits in a clearing account or agreement |
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Definition
| payment in products and in cash, usually in a mutually agreed on convertible currency |
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| cost-based transfer pricing |
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Definition
| pricing strategy used in intra-firm sales for commercial transactions between units of same corporation, within or beyond national borders of parent company, where the costs reflect estimated opportunity costs of product |
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Definition
| form of trade that involves 2 exchanges paid for in cash; it involves 2 parallel contracts whereby seller agrees to purchase products that are usually unrelated to its business from buyer and sell them on international market; also called parallel barter |
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Definition
| form of trade whereby a company sells a product to a buyer and agrees to accept, in return for payment, products from buyer's firm or from trade agency/institution of buyer |
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Definition
| duties imposed on subsidized products imported into a country |
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Definition
| selling products below cost to get rid of excess inventory and to undermine competition |
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Term
| dynamic incremental pricing |
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Definition
| pricing strategy whereby company assumes that it will have certain fixed costs whether or not it exports its products overseas and doesn't factor in its international price marketing and promotion costs or its full overhead for domestic distribution |
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Definition
| distribution system not authorized by manufacturer whereby products purchased in low price market are diverted to other markets; also called parallel imports |
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Definition
| currency thats accepted for payment by any international seller |
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| terms of sale used in transactions |
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| protectionist strategy aimed at protecting a national industry in its infancy from powerful international competitors |
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| pricing strategy in which different prices are charged in different markets, reflecting differences in consumer purchase power, distribution costs, tax systems, or other market traits |
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Term
| market based transfer pricing |
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Definition
| pricing strategy used in intra-firm sales for commercial transactions between units of same corporation, within or beyond national borders of parent company, whereby products are priced at market cost, rather than at cost incurred by company |
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Term
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Definition
| large, hard currency purchase, such as purchase of defense equipment, airplanes, telecommunications networks, railway or road building and other expensive civil engineering projects whereby seller agrees, in return to purchase products that are valued at a certain percentage of sale |
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Definition
| form of trade that involves 2 exchanges that are paid for in cash; it involves 2 parallel contracts whereby seller agrees to purchase products that are usually unrelated to its business from buyer and sell them on international markets; also called counterpurchase |
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Definition
| distribution system not authorized by manufacturer whereby products purchased in a low price market are diverted to other markets; also called grey market |
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| pricing strategy in which a product is first priced below price of competitors products to quickly penetrate market at competitors expense and then raised to target levels |
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Definition
| pricing strategy in which a product is priced above that of competitors products, when competition is minimal, to quickly recoup investments; consumers responding to these strategies are more concerned with quality, uniqueness, and status, rather than price |
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Definition
| currency that is kept at a high artificial exchange rate, overvalued, and controlled by national central bank |
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Definition
| pricing strategy in which same price is charged for product regardless of local market conditions |
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Definition
| amounts paid within framework of clearing agreement by country that owes money to other when an imbalance occurs |
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Definition
| process of buying a party's position in a countertrade in exchange for hard currency and selling it to another customer |
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Term
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Definition
| pricing strategy used in intra-firm sales for commercial transactions between units of same corporation, within or beyond national borders of parent company |
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