In Theory, the Law of One Price Makes a Lot

question 37

Essay

In theory, the law of one price makes a lot of sense. So why do we see it fail so often?

---

Definitions:

Self-Determination

The principle that a community or nation has the right to determine its own political status and pursue its economic, social, and cultural development independently.

Boxer Rebellion

An uprising in China between 1899 and 1901 against foreign influence in trade, politics, religion, and technology.

Open Door Policy

A foreign policy principle proposed by the United States in the late 19th and early 20th centuries advocating for equal trading rights among nations in China.

Imperialist Powers

Countries that extend their power and influence through colonization, use of military force, or other means.