Honda is considered as one of the largest manufacturers in motorcycle and automoblie industries with more than 14 million combustion each year Various products along with great after sale services and much more importantly the affordable price of it sproducts have resulted in obtaining compettive strategy for the company as well as becoming a big competitior for companies such as Toyota and Nissan throughout the world.

One of the most important challenging issues for companies such as Honda that tend to compete in the global market is the pricing decision,in which honda has overcome the good and bad situations created successfully. The reasons behind this success are adopting the best stratgy for entering between Ethnocentric,Geocentric and Polycentric as well as the good analysis of the environmetal infuences such as Infaltion Rate and Flactuation along with the problems of Gray Market Goods,Dumping and Transfer Pricing that have been taken into consideration. The mentioned marketing straegies as well as good adaptation of marketing mix elements has put the company in a profitable situation and considerable reputation. Counter trade issues such as barter,swich trading and offset in on hand along with mentioned pricing decisions issues on the other hand have been discuused in details in this essay with good and effective recommendations which have been given at the end of the report that can be considered as guildlines for obtaining more achievement for the company in the near future.

1.0 History of Honda

Honda is one of the largest manufacturer of the motorcycle since 1959 as well as world’s biggest manufacturer of combustion engines by producing more than 14 millions combustion every year. In the case of automobile manufacturer in the united state Honda is fourth largest automobile manufacturer .Honda was founded by Soichiro Honda who had great interest in automobile and motorcycle. After many years of hard working, finally, the successes to produce the first car in august 1963 and named that car T 360 with 4 gasoline engine and 366 cc power. The company headquarter is in Tokyo and there are many plants which is located in different parts of the world such as Japan, Canada, England, India, Brazil, Belgium and China.