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1 FINANCE MCQS

The rule that states similar goods and services produced in different countries should have the same price is called ____________?

  • Law of similar mortgage rates
  • Law of one type manufacturing
  • Law of similar labor rules
  • Law of one price
Correct Answer: D. Law of one price

Detailed Explanation

The Law of One Price states that identical goods or services should sell for the same price in different countries when prices are expressed in a common currency, assuming no transportation costs or trade barriers. This principle is fundamental in international finance, exchange rate determination, and arbitrage.

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