eddsworldfrantic
01.04.2021 •
Business
Problem 2.10: Ranbaxy in Brazil Ranbaxy, an India-based pharmaceutical firm, has continuing problems with its cholesterol reduction product's price in one of its rapidly growing markets, Brazil. All product is produced in India, with costs and pricing initially stated in Indian rupees (Rps), but converted to Brazilian reals (R$) for distribution and sale in Brazil. In 2009, the unit volume was priced at Rps21,900, with a Brazilian reals price set at R$895. But in 2010, the reals appreciated in value versus the rupee, averaging Rps26.15/R$. In order to preserve the reals price and product profit margin in rupees, what should the new rupee price be set at?
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