I was confounded by how inexpensive it is to purchase food, clothing and household staples in Mexico. It was great, really! What I was confounded by was why EVERYTHING ("todo" in Spanish) is so expensive in the U.S.!
In Mexico, almost everything was "hecho en Mexico" (made in Mexico). If it was not made in Mexico, it was much more expensive (at least double, sometimes more).
I have not researched this; so, I can only offer my theory as to why U.S. prices are generally "competitive" across the board (with only what seems to me is a slight difference in imported vs. American-made products). I don't know if there are regulations that guide this phenomenon; but, I don't feel they work effectively.
My theory is that with "American" companies creating parts and product lines in factories in other countries and vice versa, the lines get blurry. So, this enables the companies to offer pricing that competes with other products, whether they are made in this country or not.
What I am thinking is that companies that make products in the U.S. have a bigger profit margin for the products they make that compete with imported products. I have no proof for this, only my impression based on the "real price" of goods. I would love to find out exactly why our cost of living is SO MUCH MORE than in Mexico. Anyone know?
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