Thank you very much. You did an excellent job on the power point presentation. Thanks!
for years luxury goods are priced between 25% and 40% higher in china than in Europe excluding tax. However as more chinese customer travel overseas and have access to internet, chinese consumers are shifting their purchases of luxure goods feom within china to overseas to take advantage of the more affordable prices. as a result, luxury sales within china fell 11% in 2014, but similar purchases made by chinese consumers overseas grew by 9%. you are hired as an economist by the word’s largest luxury company, lvmh, to help determine its pricing strategy in china to recover revenue. what would you recommend?( hint; utilize the concept of elasticity and market’s geographical boundary)
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