Pricing for International Markets. Argentina Prices 2003 Meals:
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Pricing for International Markets
Argentina Prices 2003 Meals:
Pizza AR$ 5 - AR$ 20Parrillada (barbecue) from AR$ 8Ice cream from AR$ 2Tenedor libre (all-you-can-eat restaurants) AR$ 6Breakfast in a patisserie AR$ 2 - AR$ 4Coffee in Recoleta neighborhood AR$ 2 - AR$ 3.50Lunch/dinner in a pattisserie AR$ 7 - AR$ 15Dinner per person: from AR$ 15Palermo Viejo neigborhood (lunch - dinner) AR$ 15 and AR$ 25Menú ejecutivo (midday menu) (noon, from Monday through Friday): AR$ 7 - AR$ 10Transportation:Bus: AR$ 0.75 - AR$ 0.80 liter of gasoline: AR$ 1- AR$ 2Going out:Cinema: AR$ 4.50 - AR$ 10.Ticket for a Boca-River soccer match: AR$ 15 - AR$ 30. Hotels:5* Hotel – Double room AR$ 500 - AR$ 1000. 4* Hotel – Double room AR$ 140 - AR$ 220. 3* Hotel – Double room AR$50 - AR$ 150. 1* Hotel – Double room AR$25 - AR$ 50.
New YorkLondonParisTokyoMexico City
Aspirin$ 0.99$ 1.23$ 7.07$ 6.53$ 1.78
Levi 501 jeans39.9974.9275.4079.7354.54
Ray-Ban sunglasses 45.0088.5081.23134.4989.39
Sony Walkman 59.9574.9886.00211.34110.00
Nike Air Jordans 125.00134.99157.71172.91154.24
Mariah Carey CD16.2216.0917.8215.3120.67
SOURCE: Norihiki Shirouzu, “Luxury Prices for U.S. Goods No Longer Pass Muster in Japan,” Wall Street Journal, February 8, 1996, p. B1; and Elizabeth Fleick, “The Cost of Europe: Buyer Beware, Europeans Are Getting Mad as Hell about Prices,” Time International, December 13, 1999, p. 38.
Example 1:Example 2:Example 3:
Assuming theImporter andSame as 2 but
same channels withsame marginswith 10 percent
Domestic wholesaler import-and channelscumulative
Example ing directlyturnover tax
Manufacturing net$ 5.00$ 5.00$ 5.00$ 5.00
Tariff (20 percent c.i.f. value)n.a.126.96.36.199
Importer margin when1.83
sold to wholesaler+0.73 *
(25 percent) on costn.a.n.a.1.832.56
Wholesaler pays landed cost5.007.329.15+9.88
Wholesaler margin (331/3 percent on cost)1.672.443.05=4.28
Retail margin (50 percent on cost)3.344.886.10=8.50
Notes:a.All figures in U.S. dollars; c.i.f = cost, insurance, and freight; n.a. = not applicable.
b.The exhibit assumes that all domestic transportation costs are absorbed by the middleman.
c.Transportation, tariffs, and middleman margins vary from country to country, but for purposes of comparison, only a few of the possible variations are shown.
* Turnover Tax
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