Saturday 21 September 2019

Better deals in larger countries


When I am surfing on the Internet in the UK, I occasionally get some information about discounts and deals happening in other countries, including the US, China and many other countries. It seems the deals and discounts in the US and China are much nicer than these in the UK. Here I am not talking about prices, since it is much more straightforward to understand why different countries have different price tags for same products and services. Of course, we can see discounts as another form of price tag, so it shares the reasons making prices different in different countries; however, I notice that it is easier to get better deals in larger countries than in smaller countries, why?
First, it can definitely be caused by my lack of access to all information. We generally gain more information about large countries than small countries, so I do not have enough evidence to say that larger countries have better deals. But I still think it is reasonable to have better deals in large countries than in small countries. Secondly, large countries have large sizes of population, so quantity may be much more important than margin when it comes to generating greater profits in large countries. And vice versa, margin may be more important than quantity in small countries, so it is reasonable to see better deals in large countries than in small countries. Thirdly, large countries may have more competitive markets, since in some small countries, some large companies may be capable of supplying one entire country productively under economies of scale and face very limited competitions. This can also explain why small countries do not have as good discounts as large countries have.
Overall, I do not have sufficient evidence to support my point and my observation, but I am not surprised if it is true for people living in large countries to have better deals than those living in small countries.

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