In developing countries, such as most Latin American nations, a small number of large foreign buyers dominate exports, exerting significant market power. Due to their market power, different buyers for identical products can end up with varying prices, influenced by the buyers power. Larger buyers often receive prices with markdowns (discounts). In concentrated markets, buyers act as a buffer against exchange rate shocks. Markets dominated by powerful buyers exhibit lower sensitivity of local currency prices to exchange rate fluctuations.