Exactly. Lower income = lower labor cost = lower consumer cost.
Who knows if that accounts for all of the difference, but excluding that factor makes the whole thing useless.
Who knows if that accounts for all of the difference, but excluding that factor makes the whole thing useless.
Consumers would rather go to a big box store where they know they’ll pay an okay price all the time instead of a market where they’re expected to mentally calculate the actual value of every good and negotiate down to a magic number.
Even EBay couldn’t keep the auction concept alive.
Auctions (effectively what these negotiations are) are great for one thing: unique and expensive objects.
It’s a pain to have to spend hours a year negotiating every $50/month that goes out of my pocket. That’s a lot of unproductive hours against a machine with thousands of employees working against me.
Auctions aren't the same as bargaining. Auctions have a lower price that is constantly going up. It just helps to reveal the max that a buyer will pay.
Bargaining is a waste of time if you have alternatives that don’t require it to get a good price.
Auctions has buyers that are willing to pay more up until a point. Negotiating at the market has a seller that is willing to pay less up until a point.
The same rules largely apply.
Ah, per other comments: Jio
This is why oil is the same price pretty much everywhere in the oil. Because if oil was cheaper (including taxes and transport) in one place, someone would buy it and sell it somewhere else.
When everyone is doing this, it equalizes the prices. This is because arbitrage drives up the price of cheaper oil and drives down the price of the expensive
Oil is the same price for many reasons (least of them being OPEC), but largely because of your point - there is a global market.
How exactly is the US or UK supposed to export cheap data from India?
From the report [1]:
Tower cost in India (40-60k$) due to low land rent cost. Tower in Latin America (120-180k$)
Tower in UK - 200-400k£ [2]
[1] http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9M...
[2] https://www.ft.com/content/981f7084-c515-11e5-b3b1-7b2481276...