Which economic theorem states that under perfect competition, free trade, and no transportation costs, identical goods must sell for the same price when expressed in a common currency?

💡 Solution & Explanation

Purchasing Power Parity states that under conditions of free trade and no transport costs, identical goods must sell for the same price when converted into a common currency. Other theorems like the Heckscher-Ohlin model analyze international trade through factor endowments. International trade theories are core concepts in economics.