











Source: Reuters

Comments     Threshold


Globalism for some things... but not others?
By BuddyRich on 3/23/2013 9:25:04 AM , Rating: 4
Not passing judgement on either practice but I do find it ironic that companies defend region-based pricing yet espouse the virtue of globalization when it comes to the labour market, chasing the lowest wage where it can and when it is feasible. More applicable to manufacturing, but also call centers and more and more code shops.

I do find their excuses lame on the price discrepancy. Certainly not enough to make up the 50% price difference, but then its something I am also used to here in Canada. Our dollar is about par with the US but many things are so much cheaper in the US. Thankfully I am a 40 min drive from the border and can get stuff drop-shipped to the UPS store and pick it up for a $5 fee.

That I can order stuff, drive about 120km round trip in gas costs, pay a $3 toll bridge, pay duty and taxes on my purchase coming back and still save money means someone is making bank based on an artificially imposed geographical limitation.

I do realise this is in part to save their "authorized" distributors in some cases who pay for the right to distribute goods in a certain geographic area and perhaps once served a purpose but the internet and efficient shipping with centralised warehousing means those distributors will quickly become a thing of the past, assuming too many road blocks don't get put up to save them.




Related Articles
