If combine harvesters are cheaper in the United States than they are in Canada,the law of one price predicts that once exchange rates are taken into account:

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Quizplus · Accepted Answer

The law of one price states that, in the absence of transportation costs and trade barriers, identical goods should have the same price in different countries once exchange rates are taken into account. Therefore, if combine harvesters are cheaper in the US than Canada, the prices should equalize in the long run due to arbitrage. When the price difference is sufficient, Canadian combine harvesters will be exported to the US, thus causing the prices to move towards each other until they are equal. Voluntary restraint agreements or erecting tariffs would not be in line with the principles of free trade and the law of one price.

If Combine Harvesters Are Cheaper in the United States Than