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    This posting addresses the law of one price.

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    A logical starting point for understanding how exchange rates are determined is a simple idea called ___________, which states that if two countries produce an identical good, the price of the good should be the same throughout the world no matter which country produces it.

    Gresham's law
    the law of one price
    purchasing power parity
    arbitrage

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    https://brainmass.com/business/business-law/this-posting-addresses-the-law-of-one-price-393211

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    A logical starting point for understanding how exchange rates are determined is a simple idea called ___________, which states that if two countries produce an identical good, the price of the good ...

    Solution Summary

    The solution explains the law of one price in relation to the determination of exchange rates.

    $2.19

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