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It's a long time ago but I once made a business trip to Brazil where local colleagues attempted to explain the reason behind these high prices. I don't remember
by fleddr 5y ago
It's a long time ago but I once made a business trip to Brazil where local colleagues attempted to explain the reason behind these high prices. I don't remember everything but one example stuck with me: the government forcing the shipment of the incoming goods into a particular harbor that is far away from the end destination, as an attempt to provide them work, and perhaps apply local tariffs. Next, this product needs to be shipped again, probably by air, to the place it needs to be. So it's the distribution of work for the sake of work, keeping each other busy I guess.
The other odd thing I noticed back then is electronics that exist nowhere else. For example, an electronics company you may only know for their TVs suddenly also has laptops and phones. But only in Brazil. I guess they are white label products that are rebranded, as part of the "wealth signaling" the author talked about.