What Kind of Money?
Posted: March 1, 2023
There’s another reason that products, like LEGOs, have different prices around the world.
Currency is the type of money used in a country. The United States’ currency is dollars. Many European countries use Euros. Kenyans use Kenyan shillings.
Not all currency is worth the same. When people change their money from one currency to another, that can also change prices.
Kuwait’s currency is the dinar. It is the most valued in the world. One dinar can buy the same amount as $3.25 in U.S. dollars. The Argentinian peso is worth much less. Right now, one U.S. dollar could get you about 182 Argentinian pesos!
LEGO customers in Argentina pay more because their money is worth less. And the cost of goods is higher. LEGO sets in Argentina come from other countries. Sellers have to deliver the toys across borders. They have extra costs for delivery, taxes, and other fees.
It’s not so hard to get LEGOs in Denmark. That’s where the LEGO company started. Brick-building fans there don’t pay extra for transport costs. The toys are already in the country. In Denmark, that set we’re tracking costs about $287.
LEGOs used to be cheaper in the United States than anywhere else. But the LEGO company says that more and more people in the United States want to buy sets. That raises the price.
LEGOs are still cheaper in the United States than in much of Europe and Asia. That’s because there are more sellers in America than in Europe. Lots of Americans want to buy LEGOs. But it’s easier to deliver those orders.