There is little likelihood that the marketer will have the option of extending the same price into many foreign nations report financial analysts and translators working for a major economics publication. These experts state that variations in tariffs, currencies and local competitive prices often mean that the price variable will often change from market to market. In addition, high inflation exists in some areas of the world. For instance, inflation in Argentina exceeds and annual rate of 11-percent which makes it among the third highest in the world. Furthermore, manufacturers may not be able to control the margins and retail prices charged by the middlemen distributing or importing their products. Translation workers at a leading Chicago Translation Services company believe that international monetary exchange rates must be understood as well by translation and localization firms that work with manufacturers who seek to export goods. Devaluation is a government act that decreases the value of the domestic currency relative to that of foreign currency.
In 1987, the United States dollar was devalued by 24-percet against the Japanese yen. This action made the American dollar worth less than before, thus raising the cost of goods imported into the United States and decreasing American’s buying power. However, devaluation made it more attractive for Japanese to import American goods because the yen could buy more American products.
To cope with these factors, the translation and localization consultant needs a full understanding of all of these influences. Cost-based pricing may be more commonly found overseas because there are so many cost elements, including tariffs, intermediary margins and value added taxes. However, such is not always the case. In the past, some manufacturers have attempted to enter a market with a very low price to build market share or to simply get rid of excess inventory. New York Translation Services that provide localization consulting often discuss dumping. According to them, dumping is a colorful term describing the practice of pricing products sold in a foreign country for less than their comparable fair market value in the domestic market. This is often illegal. It is widely believed that Chinese manufacturers are dumping textile materials and consumer goods such as bags, shoes, men and ladies’ clothing, all types of electronics, phones, and generators into the Nigerian market. This has greatly weakened the manufacturing economy in Nigeria and its ability to compete. Research compiled by various economics groups suggest that Chinese products are being heavily subsidized for export into Nigeria. These subsidies allow Chinese products to be sold at much lower prices than those being produced locally.