Chinese goods are more expensive in China and cheaper abroad. When Chinese travel abroad, they purchase 'Made in China' goods and bring home. Those who can't travel, tell their friends who are travelling outise China, to get them things produced in China .
One of the main factors is the high taxes in China. What also affects the costs are marketing and pricing strategy, cost of commodity circulation, venue rental and even exchange rate causes the goods to be sold at a higher price compared to the same goods available abroad for a lesser price. For example a pair of Levi’s jeans made in China sells for 200 to 300 yuan in discount stores in USA but sells for at least 700 yuan in discount stores in China! Apparently, the price difference is even more for electronic products. iPhone 4S (16G) assembled in China sells 4,988 yuan in China, but sells for about 4,087 ($ 649) yuan in USA .
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