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January 17, 2005
Region Coding Limiting Products Another beauty from the Journal. Such measures prevent thrifty foreign consumers and gray marketers -- traders who sell goods through channels that haven't been authorized by the manufacturer -- from taking advantage of the decline of the dollar against the world's major currencies to buy lower-price products in the U.S. In terms of euros, pounds or other strong currencies, U.S. retail goods are much cheaper today than they were two years ago. U.S. multinational companies want Europeans to continue to buy their goods in Europe, however, rather than seeking out bargains in the U.S. The companies make more money if Europeans pay in euros for their goods at current exchange rates... Consumer groups are also opposed to the latest region-coding measures. "Manufacturers don't like global commerce when it doesn't line their pockets," says Phil Evans, principal policy adviser at Which?, a British consumer watchdog. "In the long term, it's not a clever thing to do from a customer-relations standpoint."
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