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Your $20 does not translate into my £20
So many people do not understand that Economics is impacted very much by the value of the certain currency you are looking at. If the currency goes up so suppose as the theory says the economy should rise to a stronger point. This goes on in many selling websites across the E-market platform where many people do no understand that there is a huge difference between the prices in a certain country based on the economy of the country as well as mentioned before the ‘power of the coin’.
This can be a reason as to why it is difficult to sell a certain product into different countries or even on an international level as a startup business. Let’s say that you have set a price of 20 euros, for some this price is just perfect for the value that the product offers as well as based on the economy of their country where they are located. If a person from America (for example) looks at this product and they look at the price of 20 euros for a second they will try to translate the price range as if it was only $20 when in fact the product that they are looking at costs $23 ( depending on the fluctuation of the exchange rate).
For others, the product may seem very cheap as they come from a country that the coin may just be a bit more powerful and in fact powerful enough to make the product cheap enough in order to proceed with a sale. in this case, if the…
