Jul

27

 Say something costs you 100 units of your currency in your residence country. Now you travel to the following countries where the cost of the same thing is listed in the local currency.

In country A, it costs 3 unit;

In country B, 20 unit;

In country C, 600 unit;

In country D, 10000 unit

Say that you know the costs are mainly caused by the exchange rates.

In which country would you, perhaps subconsciously, have more tendencies to buy the thing, and in which country would you have more hesitations to buy it?

In my travels in the past years, I sensed that I am in some way affected subconsciously by these numbers. The effect doesn't seem quite linearly related to the cost numbers. For instance, when it's 3 unit, I might want to buy more because it feels so cheap. When it's 20 unit, I may feel that it's too expensive given a good knowledge of the exchange rate in mind. And when it's 600 unit, it feels expensive because the number seems really big. But when it's 10000 unit, it may feel cheap given the knowledge that the currency is very cheap.

Zubin Al Genubi writes: 

I'm in New Zealand and the nzd/usd is .67. My thinking is that everything is 1/3 off so I spend like Everything is on sale. Many things are cheaper but most things aren't. So its a delusion. Services, hotels, food is cheaper absolutely but imported products are not. Tipping is limited so restaurants are cheaper. 


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