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f682aff184 ^ as of 14 Apr 2015 "Monthly comparative price levels". "China, India economies '40% smaller'". Furthermore, the basket of goods representative of one economy will vary from that of another: Americans eat more bread; Chinese more rice. of $4.37. The law of one price, the underlying mechanism behind PPP, is weakened by transport costs and governmental trade restrictions, which make it expensive to move goods between markets located in different countries. Bucket in America in January 2016 was $20.50; in Namibia it was only $13.40 at market exchange rates. Although it may seem as if PPPs and the law of one price are the same, there is a difference: the law of one price applies to individual commodities whereas PPP applies to the general price level.
^ Krugman and Obstfeld (2009). The following table, based on data from The Economist's January 2013 calculations, shows the under () and over (+) valuation of the local currency against the U.S. "Abnormal Deviations in International Exchanges". bucket. Forwards15.22 Futures Markets Margin15.23 The Futures Trade Process15.24 Computing the Margin Balance for a Futures Account15.25 Closing and Terminating a Futures Position15.26 Other Types of Derivatives15.27 European vs. Business and economics portal . International Economics. p.942. "Is the Aussie too expensive? iPad index says no". dollar by virtue of Canadians buying the U.S.