You may need special pricing strategies to market in other countries. If you're exporting, your pricing must cover expenses not incurred in domestic markets, such as tariffs and taxes. Some marketers set standard world prices. Others set prices country by country, to factor in local market economies and competition. Multinational companies must consider transfer pricing , pricing that relates to the movement of goods or services between a marketer's internal departments.
Transfer pricing helps accurately assign costs and measure profits in each department.
It may be difficult to set a price that makes sense for both departments. Transfer pricing also raises the possibility for manipulating profits and tax liabilities. Some adjustments will affect the list price , the official price you quote for your product. The market price is the price that customers actually pay for your product. B. Monetary Price Adjustments 1.