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Problem:
Clearly explain why is meant by Purchasing Power Parity (PPP) and Interest Rate Parity (IRP). What evidence is there for and against this theory?
Summary of question:
This question is basically belongs to Finance as well as it discusses about Purchasing Power Parity as well as Interest Rate Parity and the evidence for and against the theory. These have been stated in the solution comprehensively.
Furthermore What may limit the use of the network model in the firm? Do they operate effectively in all situations?
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