Question

Why Prices are different across countries?

Answer 1

Three reasons: Market, Cost and Availability.

The US market is very much larger than the Canadian market so the are economics of scale in larger the US market. This situation can be taken advantage of especially when the US dollar is stronger against the Canadian dollar. We are able to sell into Canada for less than the Canadians can buy for in there home market. The other side is true too. In order to maintain market share companies like Nortel cut there wholesale prices in Canada. This is to keep there factories running and to maintain their skilled work force. When the Canadian dollar is lower against the US dollar we would buy the Nortel phones a substantial discount because the price wasn’t adjusted upward as quickly as the change in currency valuation

Often the cost differential of a product is determined by shipping costs. As an example shipping somethings manufactured in China cause them to be more expensive than manufacturing them in the USA. The landed price in each country varies with other factors likes tariffs , VAT taxes and other duties. So the overall cost can differ widely.

The cost a product can be just e plain old supply and demand. If you needed it you are going to pay for it. A short supply in a country will create a rise in prices a glut lower prices.