When the law of one price is violated,a(n)________ opportunity arises.

Question

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When the law of one price is violated, it means that the same good is being sold at different prices in different markets. This creates an opportunity for arbitrage, which is the practice of buying the good at the lower price and selling it at the higher price, thereby making a profit. Dumping refers to the practice of selling goods in foreign markets at prices lower than their domestic prices, usually as a strategy to gain market share. Countertrade is a type of international trade where goods are exchanged for other goods and services instead of cash. Devaluation refers to a deliberate decrease in the value of a country's currency, typically done to promote exports and discourage imports.

When the Law of One Price Is Violated,a(n)________ Opportunity Arises