Definition

Cateora & Graham define international pricing as “the adaptation of pricing strategies to accommodate differences in exchange rates, costs, competition, and purchasing power across countries.”

Introduction

A Coke bottle can’t cost the same in Mumbai and New York. Exchange rates, taxes, and cultural expectations demand flexible pricing globally.

Explanation

1️⃣ Standardized Pricing – same price globally (rare).
2️⃣ Differentiated Pricing – adjusted to local markets.
3️⃣ Gray Market Control – prevent unauthorized resale across countries.
4️⃣ Factors – tariffs, shipping, purchasing power, currency volatility.

Key Takeaways

Balance global equity with local affordability.

Exchange rate monitoring prevents loss.

Psychological thresholds vary by culture.

Real-World Case

Netflix customizes subscription prices per country, making access affordable while preserving value.
Reference: https://www.netflix.com