Why Chinese product are cheaper than the usa

Why Chinese product are cheaper than the usa

                 Several years ago. The difference between prices in China and the United States has attracted a lot of people. One is a hot topic and it is interesting. "Why are your products manufactured in China are very cheap in the United States", as the purchase of Columbia brand coats from downtown Boston. The coats are made in China and are $ 69 which is equal to 470 yuan, but the same clothes. On sale at the mall. Wangfujing in Beijing, has a high price of 1000 yuan (price in China is higher than in the United States, about two times) Another example is the case of the iPhone 3, which costs $ 600 or equal to 4000 yuan in the United States, but China has a high price. up to 6 or 7 billion yuan in absolute latest version of 3G PC IPAD. Another product of the apple has been very popular as a cost about $ 670 in a computer store, or Harvard University, about 4500 yuan, including VAT. But in the Chinese stock market has a high price to 6000 yuan ipad the case known as the most likely inevitable, Coach handbags, famous enough. In stores, suburban, Coach bags cost about $ 100 a generic version, but in China for the same market price of 1500 yuan, the brand or other brands such as Nike Adidas Reebok and many other products manufactured in China. If sales in the United States is still about half the price in China.

                They differ greatly in price leads to the traders to take advantage of the inevitable differences taken to America, the Chinese tend to buy the team to sell to make a profit. The sales staff is often busy with people buying these services. The Coach bags are selling well in China. But in China back in America, much more expensive. It is not surprising that the Chinese people to buy a carrying bag Etemamgetemm ื a house.

                As we know that the price includes the cost of production. Transportation costs and the cost to sell. If we consider common sense and remove the products sold in China would be the cost of transport and the cost of selling cheaper in America, of course. Thus, prices should be cheaper in China. But now that China has higher prices for products manufactured in China, USA incredible. This is different for someone who was born in opposite directions. In the meantime, we've never heard of Peking duck Peking Duck Beijing will be more expensive than the others. This issue is considered a fascinating and interesting.

                There are four reasons why the prices are reasonable for such a phenomenon.

                1. The market needs.

                Under market competition. The price is equal to the cost plus the average profit sector. If the cost of the product are the same, but different sales prices. This could explain the structure of the different markets will lead to different results with the stock market If there is too much (there is an excess supply) will have lower profits. (Because the market is not so much. The same product is sold out a lot. They are sold at high prices, not) the same way if the demand exceeds the number available (there is excess demand), it is more profitable. (I need to do more. It is the need of the market), for example, Coach handbag or even a brand of the United States. But the Chinese people to admire so much that the market demand in the U.S. (there is more demand, hence higher prices in the U.S.) it is concluded according to the market mechanism. If the demand for its products in more than one type of product that will cause the price of goods that countries with more demand than supply.

                2. For the operation.

                The new institutional economics suggests that the system of that country to determine the transaction costs incurred. For the same. Despite the cost of production of electricity. But if sold in different countries with different systems. Transaction costs that would have been different. The same brand. To be sold in countries where high transaction fees. The price of the mark in the country will be higher as well. The factors that affect a transaction fee for certain products or goods. Purchase behavior. Interests of consumers. Economic satisfaction. The reliability and specificity of the assets. This may explain why U.S. prices are cheaper in China. Customers in the United States may take less time to shop on the Internet. Communication and telecommunication faster. Improved technology and information infrastructure in China. Customers in transaction costs compared to customers in China. Prices in the U.S. are cheaper in China.

                3. Effect of ownership of the trademark (brand), and intellectual.

                Impact that the brand is a consumer. Brand is important in the creation of value-added products and services. It reflects the quality and characteristics of the trust. The owner of brands, many people have commented. Brand or product or service that the brand will have control of the sale price is above normal, for example, if there are two that look the same. But no brand (eg brand department stores in general), people tend to buy the one with the more expensive brands because of the quality and reputation of the trademark owner. The branded goods are more expensive than those that are not branded, they are of superior quality and value of intellectual property rights. (It will not be replaced with other goods).

                4. A culture of consumption.

                In the Chinese culture presents occasions such as holidays, birthdays and business meetings. O events speciali.La elevated position of having to be very expensive. Demand for luxury goods. There are so many brands. Prices are high