Imagine you're selling candy. If you live in a town where everyone has lots of money, you might charge more for your candy than if you lived somewhere with fewer people who can pay. Companies do something similar but on a much bigger scale, they change prices depending on how rich or poor different countries are, and even based on the value of their money compared to other countries.
Examples
- A toy that costs $10 in the U. S. might cost €12 in France because of exchange rates.
- A smartphone sold for ¥60,000 in Japan might be priced at $450 in America.
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See also
- Why Do Companies Charge Different Prices for the Same Product?
- What is bundling?
- Why Do Companies Charge More for Small Quantities?
- Why Do Some People Pay More for the Same Coffee?
- How Does The Psychology of Pricing Plans Work?