well MR Tan
the most basic economics for all manufacturers and us the consumer to understand is the production costings of the products to be produced and thereafter, the profit margins they desired , the latter , after taking into consideration, the quantity produced and market competition . delivery/transportation costs such as by sea , land or air will be included as well to the location/country of the manufacturer's warehouse . from here ,after knowing their costs at Ex-Factory and Delivered , they will introduce pricing guidelines and if they are bigtime and reputable manufacturers , even sales pricing control over their dealers.
for international trading, the de facto currency used as easy reference is usually the US$ .
by your statement and if i may ask , how would the manufacturer after knowing their costs and profits margin , justify themselve economically , by selling a product cheaper to consumers which have lower GDP and PCI than to those that are higher or weathier.
first , without taking profits margin into consideraton , lets say if the production cost is at US$ 1,000 , do the manufacturer need to sell to Ghana/Congo or some third world country, at lets say US$ 150 whereas the US can be had at US$1,150 as there is a hugh hugh difference between these countries in GDP and PCI
This post has been edited by sunnyK: Jun 5 2010, 11:26 AM
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