Sample Essay
The price of the Original Arizona Iced Teas in theUSis $0.99. This is approximately IND47.50. A beverage at this price would be unsuitable for the Indian market. The target price therefore should be kept at IND25-30 adjusted for the foreign exchange fluctuations. The reduction in the price would be achieved through the local production of some categories of teas at lower costs. The profit that would be earned would be based therefore not on the premium pricing but through the volume of sales being made to the target market.
Influence of the Foreign Exchange
The foreign exchange plays a major role in foreign direct investments and the pricing of the resultant products and services. The current foreign exchange rate between the Indian Rupee and the US Dollar is 48.35 Indian Rupees for 1 US Dollar (‘Yahoo India Finance’). The price of the Original Arizona Iced Teas needs to be adjusted for the foreign exchange fluctuations.
These are model essays please place an order for custom essays, research papers, term papers, thesis, dissertation, case studies and book reports.
