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
On top of what has already been stated, there are also differences in prices due to import/export tariffs. These are taxes a country charges on goods brought into or out of the country.
Normally these are used to prevent other countries from undercutting local manufacturers on prices. For example, in the U.S. we have a lot of labor laws and regulations that increase the costs of running a factory. Other countries may not have the same, or any, regulations. This allows factories in those countries to manufacture the goods for a much lower cost. These foreign manufacturers can then afford to sell their product for a much lower price. Tariffs are used to offset this advantage so they don’t drive local businesses under.
So depending on the product, it may be subject to tariffs that prevent it being sold for the same cost in one location as another.
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