Why might a can of Similac sell for about $25 in the U.S. but sell for about $9 in the Netherlands?

Question

Quizplus · Accepted Answer

The price difference in a can of Similac in the U.S. vs. the Netherlands may lead to the development of a gray market (i.e., parallel imports). The text offers several possible reasons for the price differential. First, it might attempt to penetrate the market. Second, it may be priced just under the other, local, competing products. Third, the Dutch government might require the company to sell at a low price. Other reasons may also exist.

Why Might a Can of Similac Sell for About $25