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:

Display Rules

Social and cultural norms that dictate the appropriate expression of emotions in various situations.

Mexican Culture

A rich and diverse cultural heritage that encompasses traditional values, practices, celebrations, and expressions of Mexico.

British Culture

Refers to the customs, traditions, and social behaviors of the United Kingdom.

Downplaying Emotions

The act of minimizing or reducing the expression and acknowledgment of emotions in the workplace.