Exchange rates may not equalise purchasing parity in the long run because

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Exchange rates may not equalise purchasing parity in the long run because countries may impose barriers to trade, such as tariffs, which can impact the supply and demand of goods and services and therefore affect exchange rates. Factors such as differences in economies, production costs, and consumer preferences may also contribute to the persistence of disparities in prices between countries, leading to deviations from purchasing power parity.

Exchange Rates May Not Equalise Purchasing Parity in the Long