In this paper, we consider the consolidation of consumption as prime stage of the production process and the diffusion of new forms of commerce in the city, as foundations for analyzing the urban space reproduction process in the contemporary period. Having as research place the metropolis of Sao Paulo - Brazil, we conducted an analysis and some thoughts on the place of commerce and consumption of luxury goods in the urban space reproduction process, analyzed from the perspective of the extended reproduction of capital Learn More
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En este trabajo, consideramos que la consolidación del consumo como etapa primaz del proceso de producción y la difusión de las nuevas formas de comercio en la ciudad, están en la base para analizar el proceso de reproducción del espacio urbano en el período contemporáneo. La metrópolis de São Paulo – Brasil, es el local de los análisis y reflexiones sobre el lugar del comercio y el consumo de bienes de lujo en la reproducción del espacio urbano, considerando la reproducción del capital
1This article has as its object of analysis two elements present with much evidence in the contemporary world scenario: the consolidation of consumption as prime stage of the productive process and the construction of commercial forms which have extolled and magnified even more the consumption of certain goods to certain society segments
2Our discussion involves the materiality of commercial forms, in other words, its location and operation, and the virtuality of social relations which are established and which involve the act of consuming goods and services
3The aim is to stimulate the debate about the expansion of consumer society considering its role as producer and inducer agent for social transformations; the creation and expansion of commercial forms; the construction of specific commercial structures for the development of consumption as a step of the productive process and the role of the city opposite the dynamics of these activities in the contemporary period
4The place chosen for the research is the Sao Paulo metropolis, because our goal is to discuss and reflect on the ways of commerce and consumption used by a portion of society that is represented by the highest portion of income strata, that is, the so-called A or high Class, according to IBGE. In Sao Paulo, according to the Seade Foundation, approximately 25% of the richest families in the country lives in Sao Paulo
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Economic theory states that in a world of international trade and market competition, prices for the same good in one country should be the same in another country, all else equal. This "law of one price", also known as purchasing power parity (PPP), argues that any glaring mispricings between the same good in two locations would be quickly arbitraged away by people who could grab risk-free profits.
What if you could compare the prices of goods across the world and then buy the products where they are the cheapest? Pricerunner.com had exactly that idea and compared the prices of a number of electronic goods in 28 cities around the world. The products the site compared included blu-ray discs, smart phones, tablets, and other consumer electronics. According to research conducted by Pricerunner, if a person purchased all of the items that they track, it would cost $1,757 in Tokyo; $1,969 in New York City; $2,012 in Dubai, United Arab Emirates; $2,450 in Copenhagen; $2,441 in Vienna; $2,540 in Cape Town, South Africa; $2,965 in Reykjavik, Iceland; and $3,387 in Sao Paulo. In another survey, the site compared the prices of a MacBook Air, an iPad, and an iPhone.The three items combined were cheapest in Tokyo at $2,225, and most expensive in Sao Paulo at $4,160. The same items would cost $2,745 in New York.
It's not only electronics that vary in price across the globe. Cars vary in price, too. For example, a standard Jeep Grand Cherokee that sells for about $32,000 in the U.S. costs upwards of $90,000 in Brazil (when converted from BRL to USD).1 The cost of buying a gallon of gas is far less than a dollar in OPEC countries, while Americans typically pay about between $2.00-$3.00 per gallon of gas. Most Europeans have to pay double that.2 There are a number of factors that affect the prices of these products in different countries.
One of the major factors that affects the prices of goods is the difference in taxes and import duties across countries. Brazil, for example, has an extremely high import duty, or tariff, of 60%, which makes imported goods such as cars and phones so much costlier there. Many products are cheaper in Japan thanks to lower import taxes and better wholesale prices.
Even local taxes make a big difference. If San Francisco has an 8.5% sales tax and London has 20% Value-Added Tax (VAT), this will significantly affect the prices paid by the consumers.34 When talking about exports and imports, there is a significant difference between the treatment of sales tax and VAT. When exporting a good, VAT is charged on the item, but sales tax is not. When importing a good, the importer pays sales tax on the full price of the item, but pays VAT only for the value added by the importer. If you are importing into a country that doesn't have VAT from a country that has VAT, the product will be double taxed. The exporting country adds VAT, while the importing country charges sales tax.
With respect to oil prices, the prices vary significantly because of subsidies in some countries and fuel taxes in other countries. This is the reason why gas is absurdly cheap in oil producing nations such as Venezuela and Saudi Arabia. In the U.S., the taxes vary from state to state.5
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