The Value Add

Some things are crazy expensive here. (Or maybe I should say: zany expensive.) Take, for instance, children’s toys.

I bought this Lego set on my trip to the anti-Tanzany in October. We’ll use it as a simple exercise in Purchasing Power Parity, in the spirit of The Economist’s Big Mac index.

Here are some comparison prices for the exact same Lego set:

  • Toy store in Geneva, Switzerland: CHF 39.95 (US $43.49).
  • Amazon.com: $19.99
  • Shoppers, Dar es Salaam: TSH 172,500 (US $102.29)

It’s quite a mark up. I hope that Santa brings those in from the North Pole for Tanzanian kids instead of sourcing locally.

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