Question

Why Prices are different across countries? (10 lines)

Please Solve As soon as
Thank's
Abdul-Rahim Taysir

Answer 1

The disparity between taxation and import duty between countries is one of the main factors influencing the prices of commodities. Of example, Brazil has an incredibly high 60 per cent import tax, or tariff, which makes imported products such as cars and phones very much more costly there. Thanks to lower import taxes and better wholesale prices, many products are cheaper in Japan.

The markets differ greatly with respect to energy prices due to discounts in some countries and gasoline taxes in other countries. That is the reason why gas in oil-producing nations like Venezuela and Saudi Arabia is absurdly cheap. In the United States, taxes vary from one State to another

Another important factor is that the prices of items such as electronics and automobiles are not always determined based on the production costs. A product in one country may have a higher perceived value as compared to another. For one nation, a-brand may have a perceived high reputation and may be marketed as a luxury brand there, enabling the business to charge a higher price. In a nation even the cost of doing business will influence prices. Employing staff and opening up shops in any country won't cost the same.