Markup Pricing

Markup Pricing in International Trade

Meaning of Markup Pricing, according to the Dictionary of International Trade (Global Negotiator): Markup pricing refers to the difference between the cost to produce and market an item for sale, and the retail price that is charged for that item. Typically, the markup is expressed as a fixed percentage, and is determined by applying that percentage to the actual cost of the item. When calculating mark up pricing in international trade you have to take into account the specific costs of exporting products such as transportation, customs tariffs or intermediary margins.