kowenicki said:
You are saying this is just down to import taxes?
|
Well there's certainly some sort of market distorting effect going on, there is no way Sony would of its own choice put PS4 on the market anywhere for a higher price than Xb one. Even here in a bordering on irrelevant market PS4 is $100 cheaper (which should actually be $120 cheaper if one was to simply look at exchange rates, but complaining about that in this particular thread would be petty in the extreme, so I will just leave it as an observation).
Normally a market distortion of this magnitude would be principally down to import tariffs. What I can't figure out is why Xb one is cheaper, could it be that US electronics have lower trariff rates than electronics that come from outside of the Americas, or some such thing? Though differential tariffs based on origin could breach WTO rules. In theory a country has to be equal opportunity protectionist, however WTO rules allow for special deals via FTAs or regional trade agreements. But we all know a lot of countries say they play to WTO rules but actually secretly give the middle finger to the rules when it suits because it has to be a really big deal for a country to want to go to the fuss and expence of entering into a disputes resolution process under WTO.
Until otherwise proven I'm putting the blame on import tariffs. For at least 95% of the price difference. But Brazilians will keep on electing governments that do that sort of thing, so they get the tariffs they deserve.
“The fundamental cause of the trouble is that in the modern world the stupid are cocksure while the intelligent are full of doubt.” - Bertrand Russell
"When the power of love overcomes the love of power, the world will know peace."
Jimi Hendrix
