Price Discrimination in International Markets

Price discrimination in international markets occurs when companies charge different prices for the same product in different countries. This strategy often reflects variations in income levels, competition, or market demand. For example, a smartphone might be sold at a higher price in a wealthy country than in a developing one. Companies aim to maximize profits by tailoring prices to what consumers are willing to pay in each market, while also considering factors like local purchasing power and competition. This approach can enhance market reach but may also raise ethical concerns regarding fairness and accessibility.