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

Price is composed not only from the manufacturing price but also from the price of getting the product to you. Cost of a lot of components in the supply chain depend on the workforce price (truckers, refregerator’s technicians, cashiers…). The lower the wages, the lower is the price for the consumer.