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I take the "smaller market" with a grain of salt too - Sydney would be the fourth largest city in the USA if it were transplanted there and plenty of US retailers manage to survive despite being located in US cities that are much smaller.
It's not so much a question of total Australian population versus total US but rather population density versus number of retailers.
I also wonder about the legality under the US/Australia Free Trade Agreement of these exclusive dealer arrangements combined with rules that stop US dealers selling to us directly.
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