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.

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation: