Final answer:
To account for differences in national markets, global marketers need to consider economic, cultural, and legal factors when developing pricing systems and policies. These reflect each market's unique economic conditions, cultural norms, and legal requirements that influence pricing and competition.
Step-by-step explanation:
Because of differences in national markets, the global marketer must develop pricing systems and pricing policies that take into account a variety of factors. The three key considerations for developing these systems and policies are economic factors, cultural factors, and legal factors. Economic factors involve understanding the purchasing power, inflation rates, and economic stability of each market. Cultural factors encompass preferences, traditions, and consumption patterns that can influence how products are priced. Legal factors, including tariffs, trade agreements, and regulatory frameworks, are critical for pricing strategies to ensure compliance and competitive pricing.
Economists address the complexity of changing market factors by employing various analytical methods, such as ceteris paribus, which means 'all other things being equal', to isolate and examine the effects of individual factors one at a time. When considering political factors, economists must take into account both domestic and international dynamics that shape public policies, affecting market conditions. Shifts in technology and globalization have also redefined markets, increasing competition and connectivity among businesses and consumers globally.
In summary, global marketers must navigate a multitude of factors, but giving special attention to economic, cultural, and legal factors is crucial for devising appropriate pricing systems and policies. By understanding and adapting to these factors, marketers can better cater to diverse markets while ensuring profitability and compliance.