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Old 10-27-2010, 12:44 PM   #25
fjtorres
Grand Sorcerer
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Quote:
Originally Posted by mSSM View Post
Currency exchange is not the only part, obviously. However, production cost is the same for both models.
Of course.
But shipping costs aren't.
Packaging costs.
Marketting costs. Import duties (if any). Labor costs. Warehousing costs.
Inventory financing.
Warehouse-to-consumer shipping.
Warranty fulfillment.

It takes a lot more to run a business than a web server, a box of product, and a checking account.

Even inside the US there is variation in costs; witness the migration of automobile manufacturing from the midwest to the southern states. Or the migration of book sales from small family-owned businesses to mall chain stores to the superstore chains to online and now to ebooks. Same product delivered in different places at different costs.
Some business models are cheaper than others.
The same applies to social contracts.

Doesn't make one better than the other; just... different.

Last edited by fjtorres; 10-27-2010 at 12:50 PM.
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