How come the same products are priced differently in different countries? Like if a Snickers bar costs 2$ in the US it’ll cost 30 cents in Ukraine. Do companies loose money this way?

Question

How come the same products are priced differently in different countries? Like if a Snickers bar costs 2$ in the US it’ll cost 30 cents in Ukraine. Do companies loose money this way?

In: Economics

Answer 1

products like a Snickers bar will be made locally for different regions/markets, and costs will account for that… ie. the Ukraine Snickers bar was made with cheaper Ukrainian factory labor, transported with cheaper Ukrainian truck drivers, sold in store with cheaper rent, etc. Some commodity costs might be more similar but those are often a small amount of product cost. Also, there may be more subtle differences in terms of bar size, number of peanuts in each bar, etc. to help get costs down.