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Based on the point given is the reason why law of one price fails almost all the time. ( Briefly and explain) 1) Transportation costs
Based on the point given is the reason why law of one price fails almost all the time. ( Briefly and explain)
1) Transportation costs can be significant, especially for heavy items.
2) Tariffs, the taxes countries charge at their borders, can be high.
3) Technical specifications can differ.
4) Tastes differ across countries, leading to different pricing.
5) Some things simply cannot be traded.
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