[jeremiah]

I have a friend that works for Boeing, and spends a lot of time in SE Asia, Asia and in Africa. At $.10 an hour those goods manufactured overseas, still seem to cost about the same amount in the US as if they were being built in country. The prices are being set by whatever the area can support. A radio that costs $99 in America, will sell for $19 in Africa. The same holds true for many products. Since business does not like to lose money, I wonder what model they use to set pricing? Are first world consumers subsidizing the cost of products to the third world?

[hedgetrimmer]

Are first world consumers subsidizing the cost of products to the third world?

Yes we are. The most well documented example is prescription drugs, which have a tiered pricing scheme that was negotiated in WTO trade rounds.

[OB1kNOb]

The prices are being set by whatever the area can support. A radio that costs $99 in America, will sell for $19 in Africa.

Heck I see different pricing between Wal-Marts all located within the same city. Not a big price variance mind you, but I've seen it enough to recognize that Wal-Marts located in lesser affluent urban areas have lower prices on some (not all) items, than another located in a new affluent area. (BTW, I'm not a Wal-Mart basher. I'm a heavy financial supporter of them.)...... ;-)