Global prices of similar goods vary widely, challenging the Law of One Price.
The article looks at how prices of goods from the U.S., Germany, and Japan behave over time. They studied export prices of manufactured goods from 1974 to 1990. The results show that global prices of similar goods from different countries don't always follow a consistent pattern in the long term. This challenges the idea that prices should be the same for the same goods no matter where they come from.