Why Does The Shoes And Clothing Made In China Cost The Price As Soon As They Go Abroad?

In recent years, the price difference between China and the United States has attracted the attention of many people.

In the American suburbs

Some people say that China's export tax rebate policy has led to cheaper products such as shoes and clothing abroad.

This view lacks persuasiveness.

Even if the tax rebate allowance is deducted, the Chinese shoes and clothing products sold in the United States are still much cheaper than those sold in China.

In fact, there are four reasons that lead to this reverse price difference: brand effect, paction cost, intellectual property right and consumption culture.

In terms of paction costs, the new institutional economics holds that the system determines paction costs.

Therefore, for example, the same footwear products, even if the production cost is the same, in different countries, there will be different paction costs, resulting in different total costs.

Suppose Guangdong

Just think about how many toll stations there are.

In fact, pportation costs are determined after all, and more uncertainty comes from prior paction costs and post paction costs.

In the Chinese market where "relationship" is rampant, how much time and money does a factory have to get orders from domestic enterprises to spend time and money on banquets and gifts? How much time and money will it take to get the money? On the contrary, when doing business with foreign enterprises, as long as the partners confirm the cooperation relationship, a fax will often solve the problem.