The Law of One Price States That If Transportation Costs

question 80

Multiple Choice

The law of one price states that if transportation costs are relatively small, then the:

• A)nominal exchange rates for every country's currency must be equal.
• B)nominal exchange rate for a currency must equal the real exchange rate for that currency.
• C)price of an internationally traded commodity must be the same in all locations.
• D)producer with the lowest opportunity cost should be the only producer any commodity.

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Definitions:

Ethical Decision-making Approaches

Methods and considerations used to make choices that reflect moral principles and values in personal actions or organizational policies.

Utilitarian Approach

Action that results in the greater good for the majority of people.

Corporate Social Responsibility

A strategy in business that promotes sustainable growth through the provision of economic, social, and environmental advantages for every stakeholder involved.

Corporate Social Responsibility

A business approach that contributes to sustainable development by delivering economic, social, and environmental benefits for all stakeholders.