Quote:
Originally Posted by CaramonLS
Not at all, I'm simply saying that the market sets the price, not the cost of production.
You were the one who mentioned that consumers would have to pay the higher cost for "ethical" business practises, but in reality, the only thing that would be really affected from a company like Nike moving away from exploiting developing countries to paying decent wages in developed countries or even wages which people can use to get ahead in the developing world - would be their own bottom line.
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OK, but are you familiar with Nike's cost structure? maybe those shoes would be $220 all else being equal if they were manufactured in Canada?
edit: btw, the 'market' as you refer, which I presume translates into the buyers willingness to pay sets the price in certain markets, in markets that are mature and/or highly compeditive the cost of production is a good guage for price setting. IE simple no frills shoes that lebron james has not heard of, will be more a function of thecost to bring to market vs shoes like Nike+ that link up to a nano.