Pricing
Prosperland's Home Office must set the visa pricing policy for its new digital immigration service.
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Your client is a government agency, the "Home Office", of a Western, developed nation ("Prosperland"). The Home Office is responsible for setting and administering immigration policy in Prosperland.
As part of its immigration responsibility, the Home Office sets the price for visas (including visitor visas, student visas, and permanent immigration visas). The Home Office also manages the immigration system (visa processing, border security, etc.), which costs the Home Office approximately $1.2 billion each year. The cost of running the immigration system is funded by the fees from visa applicants and other immigration services provided by the Home Office.
The Home Office is about to embark on a major digitization program to modernize the immigration system, which is estimated to cost $2 billion over the next five years. This digitization program must also be funded by the fees from visa applicants and other immigration services.
Your team has been asked to determine whether the Home Office can fund the digital transformation by adjusting the prices of visas and/or selling additional visa and immigration services and, if so, how?
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