Formation of prices on the world market. Pricing in global trade

The global market, characterized by particularly fierce competition, leaves a certain imprint on the pricing process. The price level is influenced by the characteristics of each industry market, its type, the presence and number of intermediaries, existing systems discounts, sales volumes, etc.

All variety economic factors influencing world prices can be conditionally grouped into several groups:

- general economic (phase of the economic cycle, supply and demand, inflation rate, etc.);
- related to the production of a specific product (costs, profits, level of taxes, consumer properties goods, supply and demand);
- specific, which are associated only with certain types of goods and services (seasonality, guarantees, etc.) or with the peculiarities of foreign exchange policy.

In addition to economic factors, prices can also be influenced by political or military factors.

The price level for each product on the world market is determined taking into account the specific market situation and primarily depends on the relationship between supply and demand, as well as the level of competition in a given market. The world price is taken to be the prices of large export-import transactions concluded on world markets. commodity markets. Typically these are the prices of transactions between the largest sellers and buyers or the prices of the main shopping centers, such as the London Metal Exchange or the Chicago Mercantile Exchange. Other market participants are guided by these prices when concluding transactions.

Deviations from the world price level are possible. So, if, under the influence of demand, some buyers are ready to pay more than the market price for a product, then the seller uses pricing policy"skimming" by setting a higher price for the product. Subsequently, as the market becomes saturated with goods, prices are usually reduced. For products from a well-known company that enjoys the trust of customers and provides stable high quality, prestigious prices can be set

For durable goods sold in markets for a long time, several types of prices can be set: sliding (decreases as the market becomes saturated), long-term constant, flexible (changes under the influence of supply and demand) and negotiated, providing for a system of discounts.

As in the domestic market, in the world market there are seller prices and buyer prices. Depending on market conditions, a seller's market is formed - where there is excess demand and where prices in this case are dictated by the seller, or a buyer's market, in which, due to excess supply, the buyer dominates and it is he who dictates prices. But such situations that arise in the markets are usually short-lived.

Pricing in global markets largely depends on the type of market. Depending on the number of trading entities and the nature of competition, the market of perfect competition, pure monopoly, monopolistic competition and the market of oligopolistic competitors are distinguished.

In a perfectly competitive market characterized by a large number buyers and sellers and homogeneous products, prices tend to converge. This is facilitated by the desire of sellers to get maximum profit: the seller slightly reduces prices, increasing supply volumes, and thanks to this receives a large amount of profit and maintains its position in the market.

A pure monopoly market is a market with one seller who varies prices by supplying different quantity products depending on demand. As a rule, the monopolist legally secures in advance its right to supply products to markets foreign countries, preventing a competitor from gaining access to them. To increase sales volumes, he uses the method of price discrimination, changing the price depending on the importing country. In global practice, there are relatively few such markets.

In markets of monopolistic competition, sellers are both large producers and less powerful firms. Prices in these markets are formed on a competitive basis, but with elements of monopolism. When large manufacturers begin to raise prices, there are always smaller competitors who are ready to sell similar products at lower prices. According to these principles goes to modern market and competition between producers of substitute goods.

The oligopolistic market is represented by several large manufacturers - suppliers of goods with significant market segments. These firms and importing countries typically enter into cooperation agreements. Between themselves, these firms enter into unspoken agreements on the division of sales markets, prices and production volumes. The need to maintain a certain stability in such markets has led to the creation of international cartels that determine pricing policies and coordinate production volumes.

Every manufacturer entering the world market must have an idea of the type of market, types of prices and their levels. Currently, special data banks have been created for all types of goods and product groups by region and time period. Similar certificates can be obtained on the Internet, but it must be borne in mind that all prices in this case are indicative and for reference only.

Prices on the world market exist in several types.

Contract price is the price agreed upon between the seller and buyer during the negotiation process. It is usually lower than the seller's price, does not change during the entire duration of the contract and is a trade secret.

Reference price - the seller's price, published in special reference publications and periodicals. But it must be taken into account that there is always a certain difference between reference and actual prices. As a rule, reference prices are always inflated, since they do not respond to changes in market conditions.

Exchange prices - prices for goods traded on commodity exchanges. These are mainly raw materials and semi-finished products. Such prices quickly reflect all changes that have occurred in the markets. But since exchange prices do not take into account the terms of delivery, payment and a number of other factors, these prices do not fully reflect actual trends in price changes.

Auction prices are prices established as a result of bidding. They really reflect the supply and demand of goods in a given period.

Statistical foreign trade prices are average prices published in various statistical collections. Using them it is only possible to trace the dynamics of price changes and foreign trade, for individual market participants they can only serve as a guide.

When determining the price, two methods are used: total costs and direct costs. The full cost method involves summing up all costs of production and sales of products plus estimated profit. The direct cost method involves dividing all costs into direct and overhead costs. Overhead costs (conditionally fixed) practically do not change depending on the volume of production, while direct (variable) costs completely depend on the volume of products produced. A certain profit is added to the amount of these costs.

Production costs are the basis for determining prices for manufactured products. The price of raw materials on world markets does not depend on the cost of their extraction. It is influenced mainly by supply and demand, stock exchange quotes and the position of individual states or their groups in the world market.

When determining a specific price for a product, the seller, depending on the market situation, may make concessions by providing the buyer with a discount. In world practice, there are about 40 types of discounts. The most commonly used are the following:

- seller's discount - given to a relatively regular buyer or for the volume of a one-time purchase (up to 30%);
- discount "skonto" - provided in case of full or partial prepayment of goods;
- bonus discount - provided to a permanent partner-buyer who correctly and timely fulfills all contractual obligations. The discount is provided on annual sales volume.

In addition, a discount may be provided for the purchase of out-of-season goods, as well as a dealer discount, i.e., a discount to agents and intermediaries to cover sales costs.

When concluding a supply contract, the price may vary depending on what costs are included in the price of the product and what the terms of delivery are. There are several such conditions.

1. Franco - point of departure. In this case, the price is paid for the goods, which are located with the manufacturer at a certain starting point (warehouse, factory). The seller bears all costs and risks until the buyer accepts the goods, and the buyer pays all export taxes and other expenses.
2. FOB (from the English free on board - free on board). The price includes all costs until the goods are delivered to the vehicle. Possible various options sales on FOB terms.

The basic form is ex-carriage - the specified point of departure. The seller ensures the loading of goods onto transport and is responsible for the goods before loading. Further payment for transportation and all other payments and services is provided by the buyer.

Another option is free carriage - a specified point of departure with prepayment for transportation to the destination. The buyer pays for transportation, the cost of which is included in the price of the goods.

There are several other options that assume that transportation is paid by the buyer at the destination, that it is included in the offer price, etc.

3. FAS (free along the ship at the port of loading). The price of the goods includes the costs of its delivery to the point of departure and placement around vehicle within reach of his cargo devices, and in the absence of transport - in the place specified by the buyer. All associated costs, as well as the risk of damage and loss of the goods before they are placed and handed over to the vehicle, are borne by the seller.
4. CIF (from the English cost, insurance, freigh - cost, insurance, freight). The price includes all costs associated with transportation and insurance of the goods.
5. CAF is similar to CIF, only the buyer insures the goods against the risk of accidental loss or damage during transportation.

Thus, depending on the conditions of sale, the specific price, which will be determined in the contract, changes.

Pricing in the international market is generally subject to the same laws as pricing in the domestic market. At the same time, there are some peculiarities associated with much more complex character conditions.

For international trade multiplicity of chains is characteristic. those. prices for the same product at the same time may vary significantly. The same product can be sold but different prices depending on the place and time of its sale, on the terms of the commercial transaction, the currency of payment, the nature of the market and sources of non-new information, as well as on the relationship between the seller and the buyer.

Used in foreign trade transactions different kinds prices

World prices - the prices of large, systematic and stable export or import transactions carried out on normal commercial terms for cash in certain international trade centers by well-known firms - exporters and importers of the relevant products; quotes from large exchanges can also act in this capacity. All market participants are guided by world prices in one way or another.

Basic prices - reflect the general direction of price dynamics for the previous period, they can be used when concluding contracts for the urgent supply of small quantities of goods, and when establishing more stable trade relations, basic prices are subject to further negotiation in order to apply various discounts or surcharges to them, as basic prices In practice, reference prices (data on yen prevailing on the world market today, published in the press or in special directories), list prices (published in price lists) or estimated prices (calculated on the basis of indirect data either by interested firms or special organizations that then trade this information in conditions where direct information is not available for some reason).

Catalog (brochure) price - a type of foam used in domestic and foreign trade, especially finished products, machines and equipment. These prices refer to reference prices, are close to manufacturer prices, and are published irregularly, as a rule, by the seller (exporter).

Purchase prices are a type of wholesale prices at which in a number of countries agricultural products are purchased from state, cooperative and private agricultural enterprises.

Monopoly prices are a type of market prices for goods in international trade associated with the use special conditions production and sales, ensuring greater profits.

Transfer prices are prices used by transnational corporations in transactions between branches, divisions and controlled companies operating in the same or different countries ah, for example, for products that are subject to further processing in a company of the same corporation located in another country. In such a situation, the company can pay with penalties (overestimate or underestimate) depending on the conditions of the importing country. In case of high customs duties, prices are reduced. Prices are inflated if taxes are high, including VAT, or there are legal restrictions on the activities of foreign firms.

Net prices are the net prices of goods at the place of purchase and sale, not including discounts and allowances associated with differences in the basic terms of the contract, subsidies, etc. For the buyer, this is the amount actually paid for the product. for the seller - actual proceeds from the sale of goods minus expenses incurred in connection with the execution of the transaction.

Buyer prices are the actual monetary amount of purchases of products on the market at which sales transactions are carried out or at which the buyer is ready to purchase the goods. This price reflects the interests of the buyer, seeking to purchase goods cheaper in a given market and in this moment, which must be taken into account when working with price information: the price that is justified or agreed upon by importers as a result of negotiation is, as a rule, lower than the exporter’s price.

Seller prices are the prices requested by the seller, or the actual amount of penalties from the sale of goods on the market, at which a purchase and sale transaction is carried out in conditions where demand exceeds supply. These prices reflect the economic interests of the seller, seeking to sell the product at a higher price. This must be taken into account when working with price information: the price that the seller (exporter) agrees to as a result of bargaining, and even more so announced before the transaction is concluded, is usually higher than the price of the buyer (importer).

Manufacturer prices are prices determined by the manufacturer of products at the start of production and oriented towards the costs of production and sales. These yen, as a rule, do not coincide with market prices and are reflected in the prices of the catalogue, prospectus, and price list.

Retail prices are prices at which products are sold in small quantities by individual consumers. They include production and distribution costs, enterprise profits, taxes (including excise taxes, value added tax, etc.) and take into account the market situation and the assessment of the product by a specific consumer. Retail prices are usually higher than wholesale prices, as they include retail costs. trading network(trade discount), certain direct and indirect taxes.

Prices of actual transactions (contracts) - real prices for the purchase and sale of products in the domestic or foreign markets, fixed by the parties to the contract. These prices are set as a result of negotiations, during which the selling company will almost certainly reduce the originally offered price (the already mentioned bargaining).

In terms of economic content, these prices correspond to consumption prices; they reflect the specific conditions for the sale of products and serve as important, reliable information for participants in foreign economic activity. Such prices are usually a trade secret.

Even if information about concluded contracts is published in various economic and industry publications, then. usually without specifying many essential conditions contract (quality indicators, terms of payment, etc.), which reduces the value of such information. For many consumer goods, the prices for which, although they vary depending on the variety, quality and other indicators, are still relatively certain and comparable, obtaining information does not present any particular difficulties - here the selling prices of goods on the market can be used.

It is most difficult to obtain comparable information in relation to machinery and equipment, especially for production purposes.

Information about them is inaccessible, irregular and relative. Even when comparing prices for the same type of equipment, you need to have detailed technical and economic characteristics of comparable items. It must be borne in mind that the technical and economic parameters of machines and equipment are subject to frequent changes.

The contract price can be set:
per quantitative unit of goods - unit of mass, area, volume, per piece, complex
counting unit - ten, hundred, dozen, etc.;
weight unit based on the basic content of the main substance in the product (for such goods as products based on chemical compounds), as well as based on fluctuations in natural weight, the content of foreign impurities and humidity.

The currency terms of contracts are of great importance. Incorrect choice currencies in which yen are established (and this is the subject of agreement between the parties in the process of renegotiation) and settlements between partners are carried out, can ultimately turn a profitable contract into a unprofitable one. The logic of the exporter and importer when forming the currency terms of contracts is opposite; it must fulfill the task of protecting the economic interests of the parties on the basis of reciprocity.

In international trade, several methods of fixing prices in a contract are practiced. Because of this, there are different types of prices.

The fixed price is established at the time of signing the contract; it is not subject to change during the entire period of its validity and does not depend on the timing and order of delivery of the goods. However, such penalties exclude the possibility of subsequently taking into account fluctuations in economic conditions, which could result in losses for one of the parties (if market penalties change by the time the payment is due). Typically, such prices are used in transactions with immediate delivery of goods or for deliveries in a short time.

Periodically fixed prices imply a certain fixed amount valid for a certain period of time. At the time of signing the contract, prices are not fixed, but are determined, for example, before the delivery of each batch, at the beginning of the year, etc.

A variable price is a price fixed at the conclusion of a contract, which can be revised in the future if the market price of a given product changes by the time of its delivery. An acceptable minimum deviation from the market price from the contract price is agreed upon (usually 2-5%), within which no revision of the fixed price is made. The contract must indicate the source by which changes in the market price should be judged.

Sliding price is the price calculated at the time of contract execution by revising the contractual (basic) yen to take into account changes in production costs that occur during the period of contract execution. This yen is used in contracts for durable goods (large industrial equipment, ships, construction sites). Initially, the contract sets the initial price, the parties stipulate its structure, i.e. percentage share in it fixed costs(profit, overhead, depreciation, etc.) and variable costs for raw materials, materials and labor. It is the latter that determine the sliding of the foam, since changes in prices for raw materials, state tax policy, and the level of wages in the industry will be associated additional expenses to fulfill this contract, the contract also stipulates the maximum level of deviation of the final price from the original one.

Contract prices are formed through negotiations between one seller and one buyer who have found each other. However, penalties are often established as a result of more complex procedures: at the stock exchange, at auction, at auction.

Exchange prices, or stock quotes, are prices that arise as a result of speculation on commodity exchanges, where many buyers interact with many sellers.

During exchange trading at a session, various price levels can be fixed, while a specialized body of the exchange - the quoted commission determines their average level, as well as the price at the beginning and closing of the session, which are then subject to publication. In this regard, the term “quotation of exchange prices” is used, which, in essence, means their fixation during exchange trading at certain rules, separately by type of transaction, with different terms execution of contracts.

In the practice of international trade in goods that are objects of exchange transactions (oil, metals and other types of raw materials; about 70 types of goods in total), these yen are very often taken as a basis (or serve as a guide) and when determining prices according to foreign trade contracts(concluded outside exchange trading).

Exchange prices are heterogeneous and depend on the nature of transactions: prices for transactions for real goods (spot and forward) and prices for fictitious goods (the so-called futures yen) (see Chapter 24).

Prices for real goods are formed at the time of conclusion of the contract based on the relationship between supply and demand for the goods. Spot price, or cash, means the price of transactions for cash goods with immediate delivery after the conclusion of the transaction (on time, established by rules relevant exchange, usually from 1 to 15 days) and may vary depending on delivery conditions, quality characteristics goods, payment terms and other factors. No forward, or ship-ment, means the price of transactions on a cash product with the delivery of this product after a certain time. For forward transactions, the price is formed under the influence of not only supply and demand, but also other factors, in particular the costs of storing and insuring the goods, the amount of interest on the loan received to finance the exchange operation, etc. In addition. They. as well as spot prices. vary depending on delivery conditions and quality characteristics of the product.

The futures price is the yen determined by the parties when entering into a futures contract, which is a standard exchange contract for the purchase and sale of a commodity at a specified time for delivery in the future.

Exchange yen are published by information and telegraph agencies, in various publications: in the bulletins "Tle Public Ledger *, "Reuter", in the newspapers "Financial Times", "Kommersant" and "Vedomosti", in the supplement to the newspaper "Izvestia" - "Financial News" ", as well as on Internet sites.

Auction chains, like exchange ones, are established for certain types of goods traditionally sold at auctions (flowers, furs, etc.), where there is one seller interacting with many competing (by offering a higher price) buyers. Like the exchange ones, they also serve as a guide for non-auction transactions for the relevant goods,

Bidding prices are valid in markets where there is one buyer (customer) and several competing sellers (markets for equipment, projects, etc.).

The problem of pricing firms leading foreign economic activity, decide by choosing a price calculation methodology that will allow the best way calculate a specific price (an overview of pricing methods was given in 17.2).

In global trade practice, a system of discounts is widely used. A discount is one of the conditions of an international transaction that determines the size of a possible reduction in the base price of a product specified in the transaction agreement. The amount of the discount depends on the type of transaction, sales volume, and other conditions.

The most common of them are the following.
Bonus discounts are discounts provided to regular customers if they purchase a specified number of goods (for a specified amount) over a certain period. They make up 7-8% of the turnover value.

Wholesale discounts are discounts depending on the size of the purchased batch of goods.

“Skonto” discounts are discounts on the price of a product when it is paid before the payment deadline. They make up 3-5%.

Seasonal discounts - reducing the foam of a product during its off-season sale.

Closed discounts are price discounts that are provided on products in the internal trade of an international syndicate, in intra-company deliveries, as well as on goods supplied under special intergovernmental agreements.

Dealer discounts are an amount that covers the dealer’s own expenses for sales and service, as well as providing him with a conditional profit. Depending on the goals and objectives solved by the company, the vertical pricing method can be used. In this case, the manufacturer independently sets the retail price, including in advance the amount of discounts for wholesale and retail buyers. The amount of the dealer discount reaches 30% and depends on the type of product and the volume of intermediary services.

Quantity discounts - for goods produced in small batches or individual orders, these discounts are important, since increasing the series leads to a reduction in production costs. They make up 10-15% of the transaction value.

Discounts for bargaining - a reduction in the price of goods during the negotiation process, before signing the contract. According to international traditions, for different countries it can range from 10 to 30%.

There are other types of discounts: for delivery by a certain date, for serial production of goods, for trial batches, for improved quality, etc.

Another agent, the state, may participate in price formation. If the state, in principle, considers it inevitable to pursue a protectionist policy, i.e. protect its domestic producers, it can take measures to regulate prices.

There are three main methods government regulation prices:
regulation of prices on the domestic market in order to protect it from foreign competition;
customs policy (high duties on imported goods);
budgetary subsidies for exports in the form of bonuses to exporters of certain goods in order to encourage them to set lower and therefore more competitive prices.

Price- this is the amount of money that the seller intends to receive by offering a product or service, and that the buyer is willing to pay for this product or service. The whole variety of economic factors influencing world prices can be conditionally combined into several groups:

General economic factors (phase of the economic cycle, supply and demand, inflation rate, etc.);

Factors associated with the production of a specific product (costs, profits, tax levels, consumer properties of the product, supply and demand);

Specific factors that are associated only with certain types of goods and services (seasonality, guarantees, etc.) or with the peculiarities of foreign exchange policy, etc.

In addition to economic factors, prices can also be influenced by political or military factors.

The price level for each product on the world market is determined taking into account the specific market situation, and, first of all, it depends on the relationship between supply and demand and the level of competition in a given market. The world price is accepted as the price of large export-import transactions concluded on world commodity markets. These are usually the prices of transactions between the largest sellers and buyers or the prices of major trading centers such as the London Metal Exchange or the Chicago Mercantile Exchange. Other market participants are guided by these prices when concluding transactions.

In a perfectly competitive market, which is characterized by a large number of buyers and sellers and homogeneous products, prices tend to converge.

In the global market, the pricing process has peculiarities.
The interaction of supply and demand in the global market is felt by subjects of foreign trade much more strongly than by suppliers of products on the domestic market. A participant in international trade faces a greater number of competitors in the market than in the domestic market. He is obliged to see the world market before him, to constantly compare his production costs not only with domestic market prices, but also with world ones. Manufacturer-seller of goods on foreign market is in constant “price stress” mode. There are significantly more buyers on the international market.

Within the global market, factors of production are less mobile because the freedom of movement of goods, capital, services and work force significantly lower than within one specific state. Movement is constrained by national borders and foreign exchange relations, which prevent the equalization of costs and profits.

In the world market, cases of “distortion of the supply and demand relationship” are possible. In case of great demand for a product, a situation may arise in which a product produced in the worst conditions at a national price enters the market, which essentially will determine the world price for some time. Conversely, supply often significantly exceeds demand. Then the bulk of sales falls on those subjects of international trade in which production conditions are the best and prices are lower. Even largest producer of a product in any country is the largest supplier of this product to the national market, this does not mean that it will occupy a leading position in the world market. Often on the international market most goods are sold by countries that are not, from an economic point of view, large and powerful powers.

When working with world market prices, differences in them should be taken into account, taking into account the positions of individual parties and the market situation. Depending on market conditions, a “seller’s market” arises, in which, due to the predominance of demand, commercial indicators and prices are dictated by the seller, and a “buyer’s market,” in which, due to the predominance of supply, the buyer dominates and the situation in terms of prices is the opposite. But this market situation changes all the time, which is reflected in prices.

When determining prices, the phase of the economic cycle should also be taken into account, which in the sphere of international economic relations has certain specifics. Thus, during the depression stage, prices, as a rule, do not increase. And, conversely, during the recovery stage, due to the excess of demand over supply, prices increase.

It should be noted that depending on the type of goods and product groups, the dynamics of price changes differ. Thus, when the market situation changes, prices for almost all types of raw materials change most sharply and quickly, the reaction of manufacturers and suppliers of semi-finished products is slower, and the “price reaction” for products of the engineering complex is even weaker.

Prices on the world market are usually divided into several groups based on sources of information, scope of application and method of use.

The contract price is the price agreed upon between the seller and buyer during negotiations. It is usually lower than the seller's price, does not change throughout the duration of the contract and is a trade secret, but, as a rule, these prices for certain goods in a particular region and in the presence of a small number of sellers and buyers are known.

Reference price - the seller's price, published in special reference publications and periodicals. These prices are set for non-exchange raw materials and semi-finished products. But it must be taken into account that there is always a certain difference between reference and actual prices. As a rule, reference prices are always inflated, since they do not respond to changes in market conditions. These prices do not quickly respond to changes in market conditions or political events, but reflect the dynamics of prices in a given market and trends.

Exchange prices are prices for goods sold on commodity exchanges. These are mainly raw materials and semi-finished products. These prices promptly reflect all changes that have occurred in the markets. But since exchange prices do not take into account the terms of delivery, payment and a number of other factors, these prices do not fully reflect actual trends in price changes.

Auction prices are prices established as a result of auctions. They really reflect the supply and demand of a product in a given period of time.

Statistical foreign trade prices are average prices published in various statistical collections. Using them, it is only possible to trace the dynamics of changes in prices and foreign trade; for individual market participants they can only serve as a guide.

The whole variety of economic factors influencing world prices can be conditionally combined into several groups:

General economic factors (phase of the economic cycle, supply and demand, inflation rate, etc.);

Factors associated with the production of a specific product (costs, profits, tax levels, consumer properties of the product, supply and demand);

Specific factors that are associated only with certain types of goods and services (seasonality, guarantees, etc.) or with the peculiarities of foreign exchange policy, etc.

In addition to economic factors, prices can also be influenced by political or military factors.

The price level for each product on the world market is determined taking into account the specific market situation, and, first of all, it depends on the relationship between supply and demand and the level of competition in a given market. The world price is taken to be the prices of large export-import transactions concluded on world commodity markets. These are usually the prices of transactions between the largest sellers and buyers or the prices of major trading centers such as the London Metal Exchange or the Chicago Mercantile Exchange. Other market participants are guided by these prices when concluding transactions.

Deviations from the world price level are possible. Thus, if, under the influence of demand, some buyers are ready to pay more than the market price for a product, then the seller uses a “cream skimming” pricing policy, setting a higher price for the product. Subsequently, as the market becomes saturated with goods, prices are usually reduced. Prestigious prices can be set for products from a well-known company that has the trust of customers and provides consistently high quality. For durable goods sold in markets long time, several types of prices can be set: sliding (decrease as the market becomes saturated), long-term constant, flexible (changes under the influence of supply and demand) and negotiated, providing for a system of discounts.

As in the domestic market, in the world market there are seller prices and buyer prices. Accordingly, depending on market conditions, a seller's market is formed - where there is excess demand and where prices in this case are dictated by the seller, or a buyer's market, in which, due to excess supply, the buyer dominates, and it is he who dictates prices. But such situations that arise in the markets, as a rule, are short-term.

In a perfectly competitive market, which is characterized by a large number of buyers and sellers and homogeneous products, prices tend to converge. This is facilitated by the desire of sellers to get maximum profit: the seller slightly reduces prices, increasing supply volumes, and thanks to this receives a large amount of profit and maintains its position in the market.

A pure monopoly market is a single seller market. In this case, he varies prices by supplying different quantities of products depending on demand. As a rule, a monopolist legally secures in advance its right to supply products to the markets of foreign countries, preventing a competitor from entering them. To increase sales volumes, he uses the method of price discrimination, varying the price depending on the importing country. In global practice, there are relatively few such markets.

In markets of monopolistic competition, sellers are both large producers and less powerful firms. Prices in these markets are formed on a competitive basis, but with elements of monopolism. When large manufacturers begin to raise prices, there are always smaller competitors who are ready to sell similar products at lower prices. According to these principles, there is competition in the modern market between manufacturers of interchangeable goods.

The oligopolistic market is represented by several large manufacturers-suppliers of goods with significant market segments. These firms and importing countries typically enter into cooperation agreements. Between themselves, these firms enter into unspoken agreements on the division of sales markets, prices and production volumes. The need to maintain a certain stability in such markets has led to the creation of international cartels that determine pricing policies and coordinate production volumes.

In the global market, the pricing process has its own peculiarities.

The interaction of supply and demand in the global market is felt by subjects of foreign trade much more strongly than by suppliers of products on the domestic market. A participant in international trade faces a greater number of competitors in the market than in the domestic market. He is obliged to see the world market before him, to constantly compare his production costs not only with domestic market prices, but also with world ones. The manufacturer-seller of goods on the foreign market is in a mode of constant “price stress”. There are significantly more buyers on the international market.

Within the global market, factors of production are less mobile, since the freedom of movement of goods, capital, services and labor is much lower than within one specific state. Movement is constrained by national borders and foreign exchange relations, which prevent the equalization of costs and profits.

In the world market, cases of “distortion of the supply and demand relationship” are possible. In case of great demand for a product, a situation may arise in which a product produced in the worst conditions at a national price enters the market, which essentially will determine the world price for some time. Conversely, supply often significantly exceeds demand. Then the bulk of sales falls on those subjects of international trade in which production conditions are the best and prices are lower. Even if the largest manufacturer of a product in a country is the largest supplier of this product to the national market, this does not mean that it will occupy a leading position in the world market. Often, on the international market, most goods are sold by countries that are not large and powerful powers from an economic point of view.

The development of science and technology, influencing the improvement of the quality characteristics of goods, simultaneously affects world prices. The introduction of new technologies increases labor productivity, production efficiency, and reduces labor costs. Under the conditions of scientific and technological revolution, prices in absolute terms are rising for almost all groups of goods.

When determining prices, the phase of the economic cycle should also be taken into account, which has certain specifics in the field of international economic relations. Thus, during the depression stage, prices, as a rule, do not increase. And, conversely, during the recovery stage, due to the excess of demand over supply, prices increase.

Formation of prices on the world market. Pricing in global trade

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