That identical goods should cost the same in all nations,assuming it is costless to ship goods between nations and there are no barriers to trade,is a reflection of the:
A) Monetary approach to exchange-rate determination
B) Law of one price
C) Fundamentalist approach to exchange-rate determination
D) Exchange-rate-overshooting principle

Question

Quizplus · Accepted Answer

The law of one price states that identical goods should cost the same in all nations under certain conditions, such as costless shipping and no barriers to trade. Therefore, the statement in the question reflects the law of one price. The monetary and fundamentalist approaches and the exchange-rate overshot principle are not relevant to this statement.

That Identical Goods Should Cost the Same in All Nations,assuming