Quote:
Originally Posted by Kali Yuga
I forgot to mention pricing issues, namely that the cost of living -- and thus what should be charged for a good -- will vary significantly from one nation to the next, and not just because of taxes.
|
'Should be charged'? What does that mean.
Quote:
|
E.g. due to the cost of living a book might cost the equivalent of $10 in the US, $5 in Nigeria and $15 in Japan.
|
That makes sense if something is being made in different countries, or if a retail shop is being run in different countries, but is completely irrelevant if you are selling digital goods online. There is no different marginal cost of sale implied in one website selling to someone in different countries.
(Yes there are setup costs, and legal costs, and taxes, etc... but that is not what is being discussed here. Cost of living has no effect.)
If you try to charge differing rates for the same good, when the good can be transferred around the world at essentially zero cost, people (the market) will simply work around you and source from the lowest cost location.