Comments on “Multinational Corporate Pricing Policy in the Developing Countries”

Pedro Belli
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Pedro Belli: INCAE

Journal of International Business Studies, 1977, vol. 8, issue 1, 99-102

Abstract: These comments are in reference to Nathaniel Leff's article entitled “Multinational Corporate Pricing Strategy in the Developing Countries.”Professor Leff suggests that marketing executives should reduce the price of a company's products in order to earn higher profits. In defense of this seemingly trivial suggestion, Professor Leff claims that “there are special reasons why a strategic pricing policy along these lines might be expected to have particularly fruitful effects in the conditions of the less-developed countries”. He adduces that in these countries, the multinational firms underestimate the price-elasticity of demand and hence set prices that are higher than the profit maximizing prices. He offers four reasons for this behavior:© 1977 JIBS. Journal of International Business Studies (1977) 8, 99–102

Date: 1977
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