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

The price is not what the product costs, it’s what people are ready to pay for it, and nobody would consistently sell at a loss. The production cost of a Snickers bar is about 15 cents. People in the US can and will easily buy it for 2 dollars, so it would cost 2 dollars there. In countries where you can buy an entire lunch for 2 dollars… less so.