Does the Law of One Price hold?

1. Choose five (5) countries
2. Find five (5) products that the countries have in common.
3. Find (average) price for the product at local currency term.
4. Convert the price into a common currency (US$).
5. .Do you find an evidence of the law of One Price (LOP) for the products? If yes, what are those products? If not, why? Give your opinion.
6. Calculate and find whether there are under-valuation or overvaluation of currencies?

Sample Solution