Buying at a Low Price in One Country to Sell

question 101

Multiple Choice

Buying at a low price in one country to sell at a higher price somewhere else to make a profit is called:

• A) investing.
• B) the law of one price.
• C) purchasing power parity.
• D) arbitrage.
• E) profit maximizing.

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Definitions:

Viscera

The internal organs in the main cavities of the body, especially those within the abdominal cavity.

Taste Buds

Sensory organs located on the tongue and other parts of the mouth, which are responsible for detecting the five elements of taste perception: sweetness, sourness, saltiness, bitterness, and umami.

Pigments

Substances that impart color to other materials and are responsible for the colors seen in the natural world.

Color Vision

Ability of the eye to detect specific wavelengths of light; involves specialized cone cells that detect blue, green, and red wavelengths.