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What should the new rupee price be set at

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Reference no: EM131675860

Question: Ranbaxy (India) 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 reais (R$) for distribution and sale in Brazil. In 2009, the unit volume was priced at Rps21,900, with a Brazilian reais price set at R$895. But in 2010, the reais appreciated in value versus the rupee, averaging Rps26.15/R$. In order to preserve the reais price and product profit margin in rupees, what should the new rupee price be set at?

Reference no: EM131675860

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