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3. Pricing problems in the world market

One of the main characteristics of the market is the price. World prices - a monetary value of international global price of production, or the value prevailing on the world market.

In terms of international trade, market prices influenced by the current world market competition.

The formation of the world price is not by averaging national prices, as determined by the conditions of production prevailing in world trade of goods of mass. For example, wheat and aluminum are the world export prices of Canada; for lumber - export prices, Sweden; of rubber - the price of Singapore Exchange, for furs - prices in London and St. Petersburg auctions for tea - the price auctions in Calcutta, Colombo and London.

World prices - the concept of opportunistic. On their level variety of economic and political factors influence, that are difficult to account for and overcome than in the domestic market.

For the entire pricing system in the world market is characterized by the multiplicity and mobility of the prices on the spatial and temporal criteria.

In this case, most susceptible to fluctuations in commodity prices, price shocks that may occur not only in the long term, but short-term. So, according to LME nonferrous metal in June 2010 compared to the same period in 2009, prices for nickel and copper increased by 29.6%, aluminum - by 22,7%, ferrous metals - 12%. Compared with May of 2010 nickel prices fell by 11.9%, aluminum - by 5,3%, copper by 4,9%, for ferrous metals at 14.7%. 2010 200 6 2007 2008 2009 I II III IV V VI Wheat,

USD / t Canada, CWRS 216, 8 300, 4 454, 5 300, 5 287, 2 279, 0 270, 7 264, 7 256, 7 261, 3 U.S. HRW 192, 0 256, 2 326, 0 224, 1 201, 2 194, 0 191, 1 192, 9 181, 6 157, 7 U.S. SRW 159, 0 238, 6 271, 5 186, 0 198, 8 191, 8 190, 0 187, 8 190, 3 182, 6 U.S.

USD/t 122, 9 163, 0 223, 1 165, 5 167, 3 161, 8 159, 0 157, 1 163, 4 152, 7 Barley, USD / t 117, 0 172, 0 200, 5 128, 3 146, 5 137, 4 147, 0 151, 7 143, 0 145, 9 Soya beans USD / kg 268, 4 384, 0 523, 0 437, 0 436, 0 406, 0 408, 0 411, 0 407, 0 407, 0 Soybean oil, USD / t 598, 6 881, 0 1258 849, 0 923, 0 914, 0 915, 0 903, 0 865, 0 859, 0 Thai rice, USD /t 304, 9 326, 4 650, 1 555, 0 568, 8 535, 0 505, 3 466, 0 451, 3 440, 0 1.

Current world market prices generally reflect the existing and projected aggregate supply and demand for a particular product. However, in practice the goods of the same quality, in the same center of international trade can have different price level.

Multiplicity of prices is explained by several factors:

Firstly, strengthening the world market the role of transnational corporations (TNCs) that in order to penetrate new markets, increase sales, maximize profits or to diversify are actively pursuing a policy of price discrimination by setting different prices for identical products for different groups of buyers. Thus, in the early nineties prices appeared on the Russian market cars from Germany have been touted as the lowest in Europe.

Secondly, government regulation of foreign trade, using the system of measures aimed at protecting the domestic market or to stimulate the growth of its scope, the structure, direction of trade flows. The efforts of the GATT / WTO to liberalize international trade and reduce customs - tariff barriers left in the hands of the state rather extensive arsenal of other economic instruments, largely affecting the price level: Para-measures (taxes and fees, increasing the price of goods over the customs duties), and methods of direct control over prices, which are often the result of voluntary restriction of prices, fiscal measures, fiscal policy.

Third, the degree of state participation in foreign trade, which is manifested in the provision of international public loans and grants; economic aid to other countries, the implementation of special government programs to implement the external market domestic surplus of agricultural production or procurement of imported goods for strategictheir stocks, and other such measures cause the appearance of special prices, which are performed foreign trade operations.

These prices are caused by the nature of the agreements, other than normal commercial transactions.

Finally, fourthly, the use of international trade in different currencies, barter, clearing arrangements, which may also lead to a deviation of prices.

World market price - this is the contract price. When they accounted for the harmonization:

A measure of prices, that is the minimum amount of goods or physical unit, for which the price of the goods. The unit of measurement can serve as weight, length, area, volume, set, etc.

The basis of price - is included in the price of the commodity costs of production, insurance and delivery of goods. Basis of prices determined by the basic conditions of supply of goods, harmonization, and that one of their understanding of the contracting parties is essential to successful foreign trade operations. Basic conditions are expressed in concrete terms. A general approach to their interpretation is given of the International Chamber of Commerce (ICC) in The International Rules of interpretation of terms (Incoterms). This document is being developed since 1936. Currently, there are "Incoterms 2000".

Currency rates. The price can be expressed in the currency of the exporter, or importer or a third country. When you choose the price exporters seeking to fix the price in a relatively stable currency, and the importer - in the currency vulnerable to devaluation.

Method of fixing the price - it's acceptance of the changes in the contract price. Depending on the method of fixation there are several types of prices:

1. Fixed price - the price is fixed in the contract at the time of its signing and shall remain unchanged during the execution of the transaction. At long delivery times are usually made the reservation "price is hard, can not be changed."

2 Flexible price - the price fixed in the contract, but reconsidered in the future if the market price of the product varies by the time of delivery. Usually stipulate a minimum deviation of the market price of the contract (2-5%), within which a revision of the fixed price is not made.

3.

Slider prices- mainly used for deliveries over an extended period. Moving is the price calculated at the time of execution of the contract by reviewing the basic price to reflect changes in production costs in the period of the contract.

The method of calculating the sliding price was offered of the Economic Com-mission for Europe (ЕСЕ): P1 = (o + b — 4- c—)

10 0 Afq S0

P1 - the final price on the account;

P0 - the base price;

M1 - an average or arithmetic average price for raw materials listed in the contract for the period of validity.

M0 - the price or the price indexes for raw materials at the time of signing the contract.

S1 - average or arithmetic mean of wages in respect of a particular category of contract labor.

S0 - average or arithmetic mean salary at the time of signing the contract.

a, b, c - set in the contract percentages of the individual elements of the contract price. Their sum is 100%.

and - a constant part of the cost;

b - fraction of the cost of materials;

with - the share of expenditure on wages.

4. With the subsequent fixation - the price is set during the execution of the transaction, the contract specifies only the principle of determining the level and conditions of fixing prices.

- The price level is important for its acceptance. Reference for this are published and calculated rates.

Published (advertised) prices are reported in the specialized and proprietary information sources. To the published prices are reference prices, stock quotes, price auctions, the prices of actual transactions, the offer price of large firms. Published prices are often significantly different from the actual prices as a result of application of discounts.

Settlement prices are used for supplying non-standard special equipment made for individual orders. Differences in design and performance make comparable differ- ent types of products the same destination. Therefore, prices for special equipment are calculated and justified by the supplier for each order.

Pricing - the responsible area of the enterprise.

Prices have a direct impact on profit margins and volume of demand, they indicate the liquidity of the goods and their quality, prices are largely shape the competitiveness of goods and the company itself.

In the SHS It uses the same approach to pricing, as you would in the domestic market. The main methods of pricing are:

On the basis of production costs;

Based on the level of demand;

With a focus on price competition.

The simplest is the method of calculating unit costs, which added unaccounted expenses and profit. Unlike export pricing in additional costs of sales:

Commission merchants and agents;

Customs duties;

Transportation costs;

Insurance costs of the goods;

The costs of drafting contracts and paperwork.

When the company calculates the price based on cost apply it can use three basic methods:

The full costs pricing method - a way of pricing, based on all costs that, regardless of their origin are written off by one of a product. This method is used by enterprises, whose position is close to a monopoly, and marketing of their product is practically guaranteed.

The standard costs pricing method - a method of pricing based on the calculation of the costs of regulations, taking into account the deviation of actual costs of regulatory. In order to establish economically reasonable standards to a detailed study of methods of production, technical characteristics and prices of similar products of competitors, the world standards.

3. The direct cost pricing method - a way of pricing based on the definition of semi-variable costs to produce this kind of production, considered as direct. The remaining costs relate to financial results. This method makes it possible to identify the most profitable products. Focusing on market demand, the company can change the program, replacing the less profitable products more profitable.

Pricing-based on demand offers a cost analysis (this is the lower limit price) and bid prices, ie, the maximum price you're willing to pay for the goods to the buyer (the upper limit price).

The disadvantage of the method in the identification of demand with the number of contracts that may distort the real state of demand. Price adjustment is usually difficult because of their fixation in the contract.

Pricing-based competition takes into account all the competing products, their quality characteristics and prices. Despite the preponderance of modern international trade in non-price methods of competition, pricing remains an important factor in commercial success of participants in the SHS, which is explained by the need to adapt to the conditions of economic instability, inflation, Adverse price movements in commodity and financial resources.

Pricing-based competition is reduced to determining the average price of competing goods, which can be accepted as a base, and then subjected to a correction taking into account peculiarities of foreign trade operations.

This method is applicable not only in moving goods to foreign markets, but also for import purchases. In this case, the starting point of the calculation are also the prices of competing products, but presented in the offer of delivery. The general scheme for determining the price of imported products includes a series of steps:

Analysis of all bids of delivery and to choose the most advantageous termsIn- cluding price;

The ratio of offer price to the quality characteristics of products;

Assessing the economic efficiency of selected goods;

Amendments to the offer price, taking into account the commercial terms of delivery;

Number of amendments may be significant and include discountsAdopted in international trade. Usually in the Trade Practices Amendment applied to the payment terms for the amount by utorgovyvanie, the differences in the techno - economic and other parameters.

Pricing can not be reduced only to the method of calculating and setting the final price.

Work on pricing should be based on knowledge of the market, its laws and conditions.

In general terms, a successful business in the foreign market are knowledge of trends in the global market and international trade, an objective assessment of competitiveness in domestic and foreign markets, an informed choice the optimal form of activity in foreign markets, pricing strategy and tactics.

Test questions and tasks:

Describe the concept of international trade. Under the influence, which factors are the development of international trade?

What qualitative changes occur in the international trade in today's conditions?

Describe the place of Russia in the MRI.

The structure of Russian exports and imports, the need and the basic directions of its perfection.

The concept of export expansion. Which areas of policy including export ex-pansion?

What factors have necessitated the harmonization and standardization of trade rules and procedures in international trade?

What measures are used to regulate international trade?

What role in the unification of trade regulations and procedures are SPC, ECE, ICC.

What is the regulatory impact of WTO on international trade?

Will the Russia's accession to the WTO affect the economy?

Describe the role of intermediaries in international trade.

What are the main forms of international trade. What factors due to their diversity?

Argue to yourself about the necessity of Russia's accession to the WTO.

Analyze the data in Table 1. Explain what factors may be caused by fluctuations in agricultural prices in the first place, for several years, and secondly, from 01 to 06.2010 years.

What are prices used for exported and imported goods?

Glossary

Auction - a public sale of goods in a predetermined time and place at which the buyer of the goods is a person who has offered him the highest bidder.

Exchange - a permanent wholesale market of similar bulk commodities.

International Trade - the exchange of goods and services, serving the world's reproduction process.

Options transactions - transactions which target is right or obligation to buy or sell in the future, an agreed number of futures or cash contracts for a specified price within a specified time.

Model Treaty - a series of standardized conditions set forth in writing, made in advance, taking into account trade practices.

Bidding - a competition for providers of goods, properties of which are predetermined.

Futures - mutual transfer of rights and duties in respect of standard contracts for the exchange of goods in the future.

Export expansion - an extension of the influence of domestic companies on foreign markets.

International Trade - the exchange of goods and services, serving the world's reproduction process.

Options transactions - transactions which target is right or obligation to buy or sell in the future, an agreed number of futures or cash contracts for a specified price within a specified time.

References

Voronkov, ON, shads, HE Foreign economic activity: Organization and Management: A Training Manual, Ed. prof. HE Shads - M.: Economist, 2005

Gerchikov IN International business case: a textbook for high schools. 2 nd ed., Revised. and supplemented. - Moscow: UNITY-DANA, 2001

Grachev, JN Foreign economic activities of the enterprise. Organization of foreign trade: teaching and practical guide. - M.: UAB School of Business, Intel - Synthesis ", 2001

Kokushkin IV, Voronin, MS International trade and global markets: Tutorial - St.: Technical Book, 2007

International rules for commercial terms INCOTERMS - M.: Omega-A,

2003

Mikhailov, DM Foreign trade contract: Textbook for higher educational institutions - Moscow: Law and Order, 1999

Nesterenko, VM. Nesterenko, KS Customs services of foreign economic activity. - M.: Examination, 2003

Prokushev EF Foreign economic activity: Incoterms 2000: a tutorial / EF Prokushev - M.: Scientifically K., 2004

Russia: Integration into the global economy: A Textbook, Ed. Ed. prof. RI Zimenkova. - Moscow: Finance and Statistics, 2007

Rostov YU.M. On the commercial work with foreign partners / Marketing in Russia and abroad, 2008, № 3.

Spartak AN Russia in the international division of labor: the choice of competitive strategy. - Moscow: MAKS - Press, 2004

Shagalov G. Regulation of Foreign Economic Relations / G. Shagalov, V. Presnyakov, I. Fominsk. - Moscow: INFRA - M, 2005 8 Например, в США современный рейдер представляет собой крупный хедж-фонд (в 2007 году их насчитывалось порядка 8 тыс.), обладающий активами более 1 трлн долл., а также

253

12 Объем реализации - выручка (валовой доход) от реализации продукции, работ, услуг, взятая из соответствующей строки отчета о прибылях и убытках, или показатель, признанный эквивалентным согласно методике составления рейтинга.

17 Рыночная капитализация - оценка стоимости фирмы на основе стоимости ее акций и облигаций.

18 Внебиржевая сделка (англ. ОТС deal — over the counter) — это сделка с финансовым инструментом (акция, облигация), заключённая сторонами напрямую, а не через биржу.

21 Листинг - внесение акций компании в список котирующихся на данной бирже для допуска к биржевым торгам только тех акций, которые прошли экспертную проверку.

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Источник: В.А. Черненко. Международный бизнес. 2007

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