Why can the same product cost more in another country?

Answer: Local costs and market conditions can lead sellers to different prices

A higher national income automatically makes every product more expensive — Higher national income does not automatically raise every product's price. Buyers' willingness to pay can influence pricing, but so can competition and local costs. A country's income alone cannot predict the price of a particular item.

Currency conversion alone determines the final price everywhere — Currency conversion does not by itself determine a retail price. It lets us compare prices in a common currency, but local costs and sellers' markups can still differ. Converting the price is not the same as explaining it.

Local costs and market conditions can lead sellers to different prices ✓ — Different taxes, transport costs, demand and competition can all affect the final price. Sellers may also charge different markups in different markets. No single factor explains every international price gap, and the same product can be cheaper abroad too.