Purchasing power parity (PPP)may not hold exactly because of which of the following?

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All of these transaction costs may affect the relative prices of goods and services in different countries, which could prevent PPP from holding exactly. Shipping costs can affect the prices of goods due to transportation fees, insurance costs can add to the overall cost of goods, and trading costs such as tariffs and taxes can impact prices. Therefore, all of these transaction costs may cause a deviation from PPP.

Purchasing Power Parity (PPP)may Not Hold Exactly Because of Which