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.
No comments:
Post a Comment