QUOTE (tt32003 @ Aug 27 2008, 08:16 AM)

Isn't it strange that a product is more expensive in its country of origin but cheaper as an export product ?
This may have something to do with the way contracts are negitiated and the size of the market.
Typically, contracts are negotiated in USD so as the dollar has weakened, the value of goods that you buy in the US is getting better and better. This is not sustainable but for the moment, prices in the US will go up unless the dollar strengthens. In mid 2007 JPY was about 123 per $. So a $85 VP would be JPY 10,455. In March this year the same VP would get JPY 8,415. If the US distributor bought 10,000 units at the 2007 price then Japan is happy and the distributor can supply the US market for a year or so with their stock. Once that stock runs dry and the US distributor wants to restock then they are probably going to have to pay more (and then increase the local price) unless they have a long term agreement with Japan which limits the amount that Japan can raise their prices (e.g. max of 10% per year).
The other thing is the size of the market. If Pilot can sell 3 times the VPs in the US than it can in Japan then it will be in their interests to keep the price attractive and sales high. Americans are very price sensitivite and a small increase in price may results in a large cut in consumption.
Now the european market has seen a strengthening in currency but not an equivalent drop in prices. I bet this is because retailers are just increasing their margins and not decreasing their prices. I have managed to get pens form the US at way below what the market is selling them for so I think retailers there are just profiteering since their stong currency is probably not sustainable into the future (would be worse for them if they dropped their prices and then increased them again later than keeping a consistent price).
Of course I may be completely wrong but this is my speculation...