I actually think there is a bigger motivator for differences is cost to enter. Consider this: in the US the biggest cost of a furniture store is the land. When

I actually think there is a bigger motivator for differences is cost to enter. Consider this: in the US the biggest cost of a furniture store is the land. When you compare the cost of starting a Quito-style "no guarantees" store vs. an American style "customer is always right" store, the difference is negligible. You see this also in the US real estate market - "luxury" real estate is overrepresented, because the difference between building with nice appliances and marble vs. cheap appliances and particle board is a trivial percentage of total build cost. So if you're going to develop real estate, or open a furniture store, or a restaurant, or almost anything else in the US, you usually go for the "nice" version because it's a marginal expense. This swings the other way too - because the relative risk of opening an American-style store in Quito is greater, you end up with disproportionately high prices, often approaching those of the West. Disclaimer: I said "Quito" but the above is based on my experience with another city in a developing nation.