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Why The Same Goods Have Different Prices Around The World?

Open uri20170510 32134 ughyv5?1494421703 asked

Why The Same Goods Have Different Prices Around The World?

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 answered

Another important factor is that the prices of items like electronics and cars are not always determined based on the cost of producing them. A product may have a higher perceived value in one country compared to another country.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 answered

The main reason of the same goods having different price around the world is the taxes and import duties.One of the major factors that affects the prices of goods is the difference in taxes and import duties across countries. Brazil, for example, has an extremely high import duty of 60%, which makes imported goods such as cars and phones so much costlier there.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 answered

Dear Friend, **The main reason of** the same goods having different price around the world is the taxes and import duties.One of the major factors that affects the prices of goods is the difference in taxes and import duties across countries. Brazil, for example, has an extremely high import duty of 60%, which makes imported goods such as cars and phones so much costlier there. **Another important factor is that** the prices of items like electronics and cars are not always determined based on the cost of producing them. A product may have a higher perceived value in one country compared to another country. A common brand may have a perceived high value in one country and could be sold as a premium brand there, enabling the company to charge a higher premium. Even the cost of doing business in a country can affect prices. Hiring employees and setting up stores will not cost the same in every country.

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