High-quality goods cost more in wealthy countries, study finds.
Firms in industries with different quality levels adjust their prices based on the income of consumers in different countries. High-quality goods are priced higher in wealthier countries, while low-quality goods are priced higher in poorer countries. The rate at which exchange rates affect prices varies depending on the quality of the goods and the income level of the country. This study analyzed pricing strategies in the European car industry and found that these patterns hold true in real-world data.