The 1919 model by Poltrona Frau is considered by many to be the most beautiful armchair in the world. The armchair can also be bought with a plate. Because of exchange rate risk and some other considerations, the price of the armchair in the US is 40 percent higher than in Italy. However, the price of the plate in the US is 60 percent higher than in Italy. How would you explain these price policies? Are they the right ones? Should the markup on the plate be lower?