Pricing policy and risk profile of a Chinese industrial distributor

Abstract

This work consists of a multi-disciplinar approach to price formulation, stressing the strong connection between the risks that a firm bears and the price that the firm demands for its products or services. After providing a theoretical background on price formulation, risk management, and after discussing the industry of distribution in general, the work focuses on the concrete case of Maxvogue International, a Chinese industrial distributor: the firm's pricing policy and risk management will be analyzed in order to outline a risk profile, particularly focusing on foreign currency exposure.