International Business: The Challenges of Globalization (9th Edition) (What's New in Management)
International Business: The Challenges of Globalization (9th Edition) (What's New in Management)
9th Edition
ISBN: 9780134729220
Author: John J. Wild, Kenneth L. Wild
Publisher: PEARSON
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Chapter 10.2, Problem 1QS2
Summary Introduction

To Determine:

The principal which is an identical item having identical price in all countries when price is expressed in a common currency.

Introduction:

To receive a certain amount of another currency, an exchange rate determines how much of one currency we need to pay. Whether a specific product will actually cost less or more in a particular country (as measured in own currency) is not determined through an exchange rate.

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