Domestic markets and prices are closely linked to international prices. Under the international market means that part of the stock exchange on which the transactions. International markets have no territorial boundaries. The goods offered to them have requirements:
- Have a standardized quality indicators meet the requirements of international markets;
- To meet the needs of large user groups;
- Have a great value - goods with greater weight and value and vice versa can not be subject to international trade.
Bulgaria's market and domestic prices are closely linked to international. This correlation is in several directions:
1. By foreign prices of imports and investment goods;
The structure of investment goods have the largest share material forms of material goods (raw materials, fuels). The prices of these resources is reflected in production costs, and hence in the domestic prices of finished products. Although kosvenno, this influence is strong, as resources are imported stretegichesko importance for the development of national production.
2. By trade prices of finished consumer goods;
Unlike manufacturing, these prices have a direct impact on domestic prices, because their determination into account:
1) The customs value of imported goods, which includes the actual purchase price of the deal, paid dues, fees and other associated with the movement of goods in our free boundary.
2) Domestic prices include taxes and fees paid to the Bulgarian border.
3) Sales allowances and transportation costs incurred by traders in the implementation of the imported goods.
Principal place in the structure of the internal environment of the goods have international prices.
3. By foreign export prices of investment and consumer goods;
The level of these prices are negotiated between participants in the process of concluding a commercial transaction in the international market. Export prices are criteria to which market to target supply. They are international monetary evaluation of the national labor materialized in exported goods. In this regard, export prices affect domestic prices through economic coercion of Bulgarian entrepreneurs to fit in these dimensions, which is higher quality and lower costs for manufacturers of competing products.
4. By continually increase the participation of foreign capital in domestic production and trade;
For the past five years foreign investment has increased more than 3 times. International companies are directed to increase the effective production, complying with international standards. Keep your image and prevent sales below a certain price that is higher than the level of international production.
5. Through the process of accession of Bulgaria to the European Union.
Since 2007 the national domestic market is an integral part of Europe. As a result of objective economic conditions have emerged to increase prices in Bulgaria and their convergence with other parties.
1) Increasing the cost of local predpiemachi with the performance of The European regulations / requirements for quality and production of manufactured goods. Furthermore, quality certificate, the EU introduced standards for good manufacturing practice.
2) Introduction of euromark - origin, industrial designs and copyrights. Their introduction creates economies of scale, new technologies in production and distribution. Registration of European brands of domestic production enables them to seek products in EU countries. To achieve a European investment deal marks associated with initial registration and annual fees, promotion of Bulgarian goods in Europe.
3) Compliance with safety standards and environmental protection.
4) Requirements for gradually bringing the amount of excise duty and excise goods to the EU.
Analyses show that the price at home is about 45% - 47% of EU average. Regardless of the process of bringing our domestic prices with those of the EU there are factors that determine the difference in our prices with those in other parties. More important factors are:
1) The different purchasing power in different countries - and now there are different products in different price categories and countries.
2) National identity of users and their psychological price behavior. Notwithstanding the requirements for quality, safety technology, continuously increasing customers who are cost-oriented, ie keep prices low. Extensive development have price promotions in major retail chains. This process will intensify and the increasing shortage of food by an increase in energy prices.
3) Different distribution policy in each country in terms of trade allowance and conditions of the participants in the marketing channels. In essence, the international price is the international monetary expression of value of goods and services. There are differences between international and world price. International price is that which dealt the international market and the world price is the biggest producer and user of the type of output, transactions are not bound by state and export and import transactions and payments in convertible currency. International prices are great multitude, it is caused by heterogeneous structures in the international market, including various transactions and the differences in conditions under which foreign trade deals are concluded.