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BARSIC [14]
3 years ago
8

True or False: The Law of One Price states that in competitive markets free of transportation costs and barriers to trade (such

as tariffs), identical products sold in different countries must sell for the same price when their price is expressed in the same currency.
Business
2 answers:
Assoli18 [71]3 years ago
6 0

Answer:

The Law of One Price stated in the question above is <u>TRUE</u>

Explanation:

The law of one price is an economic concept that states that the price of an identical asset or commodity will have the same price globally, regardless of location, when certain factors are considered.

The law of one price takes into account a friction less market, where there are no transaction costs, transportation costs, or legal restrictions, the currency exchange rates are the same, and that there is no price manipulation by buyers or sellers.

This law exists because differences between asset prices in different locations would eventually be eliminated due to the arbitrage opportunity.

These are the maxims upon which the law of one price is founded

  • The law of one price states that in the absence of friction between global markets, the price for any asset will be the same.  
  • The law of one price is achieved by eliminating price differences through arbitrage opportunities between markets.
  • Market equilibrium forces would eventually converge the price of the asset.

sukhopar [10]3 years ago
4 0

Answer:

It is False

The law of one price (LOOP) states that in the absence of trade frictions (such as transport costs and tariffs), and under conditions of free competition and price flexibility (where no individual sellers or buyers have power to manipulate prices and prices can freely adjust), identical goods sold in different.

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The bottom-up approach for estimating times and costs that uses costs from past projects that were similar to the current projec
storchak [24]

Answer: template method

Explanation:

The bottom-up approach for estimating times and costs that uses costs from past projects that were similar to the current project is known as template method.

It should be noted that estimating time and cost are vital because it helps schedule work, develop needs of cash flow and show progress of a project.

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The Artisan Cheese Company in Florida has decided to add a new line of imported cheeses to its offering. The company president (
KonstantinChe [14]

Answer:

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Explanation:

First, let us define what Marketing Mix is:

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The goal of a marketing strategy is to create awareness among the target audience.

Feedback and surveys are ways in which a company informs its marketing mix strategy. Therefore, if it has been determined from the customer feedback from company surveys and cheese tasting that the Product the customers prefer is Cheese from England, then that is what should be produced and promoted.

It cannot be over emphasized that companies are in business because of the customers, so their opinion takes precedence, as the saying goes, customer is always right. Therefore, if the need of the customer is not met, the company will make no profits.

The company president and product director will have to do what the customer wants.

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3 years ago
Will give free brain
Andre45 [30]

Answer:

free brain ;)

Explanation:

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Adult behavior, according to Horney, is based on efforts to ________.
emmainna [20.7K]

Answer:

D. overcome the fear of being alone in a hostile world

Explanation:

6 0
3 years ago
A municipal bond carries a coupon rate of 8.00% and is trading at par. What would be the equivalent taxable yield of this bond t
eduard

Answer:

13.33%

Explanation:

The computation of the equivalent taxable yield is shown below:

Data provided in the question

Coupon rate = 8%

Combined tax bracket = 40%

So, the equivalent taxable yield by using the above information is

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Basically we divide the coupon rate by the percentage after considering the tax rate

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