Ch 17: Blueprint Problems - Multinational Financial Management Attempts: Average 3. 3: Multinational Financial Management: Purchasing Power Parity Purchasing power party is sometimes referred to as the law of elect i t holds that the same products cost roughly the same amount in different countries after taking into account the Select . This theory implies that the level of exchange rates adjusts so as to cause identical goods to cost the same amount in different countries. It assumes that market forces will eliminate situations in which the same product sells at a different price overseas. This relationship can be expressed as follows: (P)Spot rate) Soot rate Where: P.-Price of the good in the home country - Price of the good in the foreign country Quantitative Problem in the market. Ba r e can be exchanged for US dollar. An Apple iPad Air costs $500 in the United States. If purchasing power party (P) holds what should be the price of the same iPad Air in Brazil? Do not found intermediate calculations. Round your answer to the nearest horumber