Abstract
This paper suggests a new look at corporate pricing policies in developing countries. Because of conditions discussed in the paper, the price elasticity of demand curves in individual markets may be much greater than companies assume. A shift to a low price/high volume may both increase profits and satisfy social needs to which host country governments are sensitive.
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*This research was supported by the Columbia Business School's Research Project on the Non-United States Multinational Enterprise, directed by Professor Stefan H. Robock with a grant from the Ford Foundation. An earlier version of this paper was prepared for the INCOMAS Conference on Marketing in Developing Countries, directed by Professor Dov Yizraeli. Tel Aviv University, 1974. I am grateful to Haim Ben-Shahar, John Farley, David Felix, Felix, A. G. Hart, James Hulbert, Warren Keegan, Donald Morrison, John O'Shaughnessy, Alfred Oxenfeldt, Stefan Robock, and Donald Sexton for helpful and stimulating comments. They bear no responsibility for any deficiencies in the paper
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Leff, N. Multinational Corporate Pricing Strategy in the Developing Countries. J Int Bus Stud 6, 55–64 (1975). https://doi.org/10.1057/palgrave.jibs.8490778
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DOI: https://doi.org/10.1057/palgrave.jibs.8490778