Economics - price discrimination based on geographical distance?

"Firms often sell products in different regions at different prices. This is possible as long as the cost of transferring the product is grater than the difference in the prices. If this is the case, then consumers in the low price region cannot transfer the goods to the high price region, without incurring transport costs that raise their total cost above the price in the high price region. For example, CDs are sold for a lower price in the USA than they are in the EU. This is possible because there are different price elasticies in the two countries and the transportation costs between the countries are greater than the price differential."





The above paragraph, taken from my book, is discussing price discrimination by geographical distance, but my brain can't seem to make sense of it. Could anyone explain me, in simpler terms, what exactly it is trying to say?





Cheers!|||If the price is a $100 in city A and shipping charge for one item from A to B $10, it is cheaper for a consumer in B to buy at a local store if they charge less than $110. This means that if the demand curve for consumers is not the same in city A and B a company can charge different prices in the two cities as long as the price difference is less than $10.





This assumes that the cost of bulk shipping that company pays is the same to both cities from the place of manufacture