The U.S. is in the globalization crisis today because it violated what is called the economic law of one price.

Question

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The economic law of one price states that in a competitive market, identical goods should have the same price in different countries after adjusting for exchange rates. However, the U.S. has violated this law by exporting goods at a lower price than what it sells domestically, and importing goods at a higher price than what it sells domestically. This has led to trade imbalances and contributed to the current globalization crisis.

The US Is in the Globalization Crisis Today Because It Violated