Fundamentals of Financial Management, Concise Edition (MindTap Course List)
Fundamentals of Financial Management, Concise Edition (MindTap Course List)
9th Edition
ISBN: 9781305635937
Author: Eugene F. Brigham, Joel F. Houston
Publisher: Cengage Learning
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Chapter 17, Problem 6Q
Summary Introduction

To identify: The reasons behind the failure of purchasing power parity.

Introduction:

Purchasing Power Parity:

It refers to the relationship which indicates the same cost and same kinds of products in the market of various countries after the adjustment of exchange rates of currencies. This relationship of common price can be termed as law of one price.

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