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International Marketing Channels


This price usually is discounted for distribution channel members and
some end users. There are several types of discounts, as outlined below.
Quantity discount - offered to customers who purchase in large
quantities. Cumulative quantity discount - a discount that increases
as the cumulative quantity increases. Cumulative discounts may be
offered to resellers who purchase large quantities over time but who
do not wish to place large individual orders.
Seasonal discount - based on the time that the purchase is made
and designed to reduce seasonal variation in sales, For example, the
travel industry offers much lower off-season rates. Such discounts do not
have to be based on time of the year; they also can be based on day of
the week or time of the day, such as pricing offered by long distance and
wireless service providers. Cash discount - extended to customers who
pay their bill before a specified date. Trade discount- a functional discount
offered to channel members for performing their roles. For example, a
trade discount may be offered to a small retailer who may not purchase
in quantity but nonetheless performs the important retail function.
Promotional discount - a short-term discounted price offered to
stimulate sales.
EXPORT PRICING

The Export Price Index tracks changes in the price firms receive
for the products they export. Increases in the EPI are typically due to
strong foreign demand or higher internal costs within the exporter's
country. Generally, only increases caused by strong foreign demand are
beneficial. However, the overall effect of such increases is debatable.
HISTORY OF THE INTERNATIONAL PRICE PROGRAMME

The origins of the International Price Programme can be traced to


a 1961 report on Federal Price Statistics prepared by the National
Bureau of Economic Research. The report for Congress' Joint Economic
Committee suggested that indexes be assigned to a federal statistical
agency "to obtain the attention and resources for these indexes that
we believe are essential."
A further study undertaken for NBER by Professors Irving Kravis
and Robert Lipsey gave more impetus to the project. In their study,
"Price Competitiveness in World Trade," Kravis and Lipsey outlined
the need for such measures and the feasibility of producing them.
During this time, the Bureau's Division of Price and Index Number
Research, largely because of its expertise in the development of other
price measures, had also begun research on the feasibility of producing
import and export price indexes.