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International Arbitrage Is Unable to Equalize Prices in the Service

Question 45

Multiple Choice

International arbitrage is unable to equalize prices in the service sector


A) because of restrictions on financial capital flows between countries.
B) because of restrictions on labor flows between countries.
C) because people don't seek to move to countries that have high wages in the service sector.
D) because people don't act rationally when consuming services.

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