NELS1031 wrote:

Neffertech wrote:One of the major reasons Australia is paying so much more than they should for GW products is because of the disparity between the exchange rate of the Australian Dollar with the British pound vs. their comparative PPP rates.

International companies use the PPP rates from the IMF (Purchasing Power Parity) to set prices in other countries so they can avoid the volitility of currency exchanges. In theory the PPP, which is set by long term GDP figures and comparitive currency exchange rates over long periods of time, will lead to a more stable exchange rate. So items in different countries should end up being similar in value from one country to another. However in practice that doesn't always work, and in the short term it can lead to some inequities.

I'd bet that in 2007 prices weren't so out of whack in Australia. But in the 4 years since 2007 the value of the Australian Dollar compared to the British pound has nearly doubled. But in that same time period the PPP's have barely budged.

The 2010 PPP for the UK compared to the US Dollar was .64, (.64 Pounds to the US Dollar) Australia's was 1.61. So the PPP conversion between them ends up around 2.5, and so theoretically goods worth 1 British Pound would be equal in value to 2.5 Australian Dollars. However, currently 1 British Pound is really only worth 1.52 Australian Dollars.

So according to that PPP conversion rate, Assault on Black Reach that costs 56.50 Pounds in the UK should cost 141.25 Dollars in Australia. That is very close to what GW charges. And since the PPP doesn't take into account shipping costs in it's calculations, tack on another $9Aus for shipping costs and you end up with the GW price of $150.00 Aus.

However, in actuality the value of Assault on Black Reach due to current comparative currency exchange values is really only $85.88 Aus. $85.88 vs $150.00, you're paying almost double. And Australia isn't the only country to suffer from this kind of pricing idiocy, New Zealand and much of Asia is out of whack with Europe where PPP vs Currency is concerned.

There are a lot of calls for the IMF to introduce a new system, but change is slow and for now most companies and countries will take stability over accuracy.

So GW isn't really to blame, at least not solely to blame. The relative newness of Global trade and international pricing are really at fault, and this is one of the flaws in the current system.

I hope this helps to make sense of the situation, and that this doesn't lead to any arguements.

Worth Repeating. Tried explaining this in another forum, but the nerd rage from the Southern Hemisphere Blockade, Resin Switch, Price Increase drowned it out.