Purchasing Power Parity bears an important message. Exchange rates movements should just cancel out changes in the foreign price level relative to the domestic price level.  Then investopedia also explains the exchange rate adjusts so that an identical good in two different countries has the same price when expressed in the same currency. Theses offsetting movements should have no effects on the relative competitive positions of domestics firms and their foreign competitors . I think this is a very good way to have a foreign customer base, however, since not every product can be imported or licensed to every country, there could people who simply buy product oversea and sell it for a higher price to whichever country that doesn't import or produce it. For example, Coach ,the brand for handbags, is a very decent and affordable beginning high-end brand here in the states. And sometimes you can buy really cheap ones in the outlets. However, if you go overseas like Japan, The Coach is at least 50% more the price there for the same bag. Therefore There are some exceptions in countries which can afford the expensive products. Referencehttp://www.investopedia.com/terms/p/ppp.asp