If there are no costs or other barriers associated with the movement of goods or services across countries, the price of each product should be the same in each country, after making appropriate currency conversions. It is called ____________ in Economics.

Question

Quizplus · Accepted Answer

The Law of One Price states that in the absence of transaction costs and barriers to trade, identical goods should have the same price in different countries when prices are expressed in a common currency.

If There Are No Costs or Other Barriers Associated with the Movement