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I think the most simple example is software. I don't know about Windows 7, but I know Windows Vista was 1/4th the price in China as it was in the US. Prescript

by debacle 14y ago

I think the most simple example is software. I don't know about Windows 7, but I know Windows Vista was 1/4th the price in China as it was in the US. Prescription medications in other countries often cost far lower than in the US: http://en.wikipedia.org/wiki/Prescription_drug_prices_in_the_United_States http://en.wikipedia.org/wiki/Prescription_drug_prices_in_the.... A coke in India costs half the price as it does in the US.

thewisedude 14y ago
The thing is, I would say the cost of production of Coke is less in India too. In other words, even though I believe price arbitrage happens, I dont think that would be the main culprit. I would say the lower standard of living in a particular country puts the country in a good vantage position to export more goods (or services). For eg:- A person from a developing world might be in a good position(financially) when he decides to return to his home country for good, even if he has saved what an American would call "not much". Now, I think true globalization which means (tariff free import and export of all goods including groceries) might eventually solve this problem. But before that happens- that might eventually mean a hard life for people currently living in the developed world.