Price Drivers of Economic Growth in the Southern Region of Russia

Abstract

The purpose of this article is to reveal the relationship of the effectiveness of pricing policy and spatial economics. The main emphasis is on export pricing models. International trade contributes to the accumulation of political, social and financial power, forming new shopping centers and unions, aligning prices and profitability. International exchange of strategic resources often has the goal of changing the political landscape and financial and trade practices. Oil and crops are used by leading exporting countries as a tool for political pressure and different kinds of preferences. At the same time, it can be argued that prices for certain strategic commodities in the world market are capable of solving a number of global and national issues. For example, market pricing of oil and oil products is gradually changing the world’s monetary system. Currently, future strategic commodities such as grain, sugar and cotton begin to replace oil. These traditional products of the South of Russia provide a significant share of the revenues of the state budget. However, the investment potential of the companies that produce these resources is extremely low. It is necessary to develop an organizational pricing strategy for the expansion of the product range of companies in the southern region in the MICEX list. Optimal pricing can quantitatively change not only GDP growth of both the global and national economies, but also to change the quality of life and management. Pricing methods (regression, parametric technique, specific indices) and pricing mechanisms (administrative and tax approach, for example) chosen by the company are dynamic market instruments for a strong commodity market, for the redistribution of investment flows, and income for the creation of sources of additional investment on the basis of shareholding.