The Mystery of the $234 Hermès Tie

If the euro is strong and the dollar weak, why does a Hermès tie cost more in Paris than in New York?

Walk into the Hermès boutique in Moscow's famous GUM department store on Red Square and expect to pay 5,760 rubles, or around $241, for one of their trademark, brightly colored silk ties. That same tie will cost €125 ($192) at the company's flagship store on Paris's Faubourg Saint-Honoré but only $160 before tax ($173.40 after) at their shop on Manhattan's Madison Avenue. It's the same tie. So why the difference in price?

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