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> Take a look at prices for electronics in Asia, for example. In the very places where the electronics are made, the retail prices are all significantly higher
by culturestate 14y ago
> Take a look at prices for electronics in Asia, for example. In the very places where the electronics are made, the retail prices are all significantly higher than those in the US. Samsung and LG TVs cost more in Korea than they do in America. Computers cost more in China than they do in the USA. I frequently found myself waiting until I returned to US soil before I made any big ticket electronic or computer purchases, because the savings were ridiculous.
On this point, it's important to note that the price disparity is largely due to the way items are taxed in Asia. South Korea has both VAT and a luxury item tax; China has a luxury tax on foreign brands. You need only look to Hong Kong, which has the cheapest prices in the world on e.g. Apple products (because you need a microscope to find a tax in Hong Kong) to break down this model. Your main point re: currency manipulation, especially in China, is still valid and important, but this is a bad example.
- intellegacy 14y agoThank you for correcting me on that point. I did not realize the VAT was the reason for the price disparity. Besides currency controls is the VAT the only reason for the price disparity?