EX: Global Pricing

Pricing is one of most important marketing mix strategies. A price must be low enough to gain sales, but high enough to guarantee the flow of funds to support activities like R&D, production, and distribution. However, pricing is more complex internationally than domestically. We often see identical products being priced differently in international markets. Why is that? Please write an essay about global pricing by answering the following questions.

1. Choose an iPad Air2 model as an example. (16 GB WiFi)
2. Compare the prices of this iPad Air2 in US and three other different foreign countries of your interest.
Country

Price in local currency
Price in US dollar
Before Tax After Tax Before Tax After Tax
US
1.
2.
3.
3. From a global business manager’s perspective, please discuss why the prices are different across countries. (Please list and discuss factors that affect global pricing.)
Format:
1. One page write up.
2. Double space.