This is a threat which Microsoft
cannot tolerate. Hence its efforts to eradicate piracy -
successful in China and an utter failure in legally-relaxed
Russia.
But what Microsoft fails to understand is that the problem
lies with its pricing policy - not with the pirates. When
faced with a global marketplace, a company can adopt one of
two policies: either to adjust the price of its products to a
world average of purchasing power - or to use discretionary
differential pricing (as pharmaceutical companies were forced
to do in Brazil and South Africa). A Macedonian with an
average monthly income of 160 USD clearly cannot afford to buy
the Encyclopaedia Encarta Deluxe. In America, 50 USD is the
income generated in 4 hours of an average job.
In Macedonian terms, therefore, the Encarta is 20 times more
expensive. Either the price should be lowered in the
Macedonian market - or an average world price should be fixed
which will reflect an average global purchasing power.
Something must be done about it not only from the economic
point of view.
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