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    6.1. Export and Import Parity Price

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    Sgar Tiwari

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    6.1. Export and Import Parity Price

    Uploaded by

    Sgar Tiwari
    34 views4 pages

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    © © All Rights Reserved

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    PPTX, PDF, TXT or read online from Scribd

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    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    34 views4 pages

    6.1. Export and Import Parity Price

    Uploaded by

    Sgar Tiwari

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 4

    5.

    2 ECONOMIC PRICING

    Project Appraisal Techniques Contd…


    1. Export Parity pricing for the traded goods
    Little and Marlees Dasgupta, Sen and Marglin
    C.I.F. World Price C.I.F. World Price
    (Quoted at leading world market) (Quoted at leading world market)
    Less (-) Less (-)
    Transportation costs from point of exit Transportation costs from point of exit
    = =
    F.O.B. World Price at border F.O.B. World Price at border
    * *
    Official Exchange Rate Shadow Exchange Rate
    = =
    Export border parity price Export border parity price
    (Foreign exchange equivalent) (Domestic currency value)
    Less (-) Less (-)
    Local dealer and domestic transport costs * ARs (or SCF) Local dealer and domestic transport costs
    = =
    Farm- gate export parity price Farm- gate export parity price
    (Foreign exchange equivalent) (Domestic exchange value)
    2. Import Parity pricing for the traded goods
    Little and Marlees Dasgupta, Sen and Marglin
    F.O.B. World Price F.O.B. World Price
    (Quoted at leading export location) (Quoted at leading export location)
    + +
    Transportation costs to the point of entry Transportation costs from point of entry
    = =
    C.I.F. World Price at border C.I.F. World Price at border
    * *
    Official Exchange Rate Shadow Exchange Rate
    = =
    Import border parity price Import border parity price
    (Foreign exchange equivalent) (Domestic currency value)
    + +
    Local dealer and domestic transport costs * ARs (or SCF) Local dealer and domestic transport costs
    = =
    Farm- gate import parity price Farm- gate import parity price
    (Foreign exchange equivalent) (Domestic exchange value)
    Thank You

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