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I am fairly new to economics and doing some research, so pardon my lack of knowledge on the topic if this is a dumb question.

The main question i have is: Does an egg have the same value around the world?

Some characteristics of eggs that we can consider:

  • eggs can be produced anywhere by simple raising chickens

  • eggs are used everywhere for many different purposes

  • eggs are raw materials of many food, beverages, processes

So, hypothetically, if we forget about the limitations of eggs such as:

  • go bad/rot/expire

  • break when they fall down

  • vegetarians/vegans or any other diet or people with allergies can consume eggs

Then the demand for eggs would be more or less similar around the globe. People will want them for various reasons.

Would it be correct to assume that 1 egg in China (which has the leading egg production) would be worth the same as an egg in any other country?

I am talking only about the exchange of an egg for another egg in a different country. No taxes, transportation cost or anything regarding money to be considered.

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    $\begingroup$ If you intentionally ignore "taxes, transportation cost or anything regarding money", then what remains of the difference between China and a "different country"? $\endgroup$
    – VARulle
    Commented Mar 13, 2023 at 13:29
  • $\begingroup$ @VARulle then would that mean 1 egg from china can be exchanged exactly for 1 egg from any other country? $\endgroup$ Commented Mar 13, 2023 at 14:55
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    $\begingroup$ Not sure I understand your question. Why should there be any exchange of indistinguishable items? It doesn't benefit anyone. Or is your underlying question a different one? For example how many eggs does the average income buy in China vs the US? $\endgroup$
    – BrsG
    Commented Mar 13, 2023 at 19:36
  • $\begingroup$ @BrsG why should the average income matter? I just want to know if an egg from 1 country can be interchanged for 1 egg in another regardless of the economy, money supply or any other factors around money. It doesn't matter if it benefits anyone or not i just want to know if the eggs have the same worth given the set of considerations above. $\endgroup$ Commented Mar 13, 2023 at 20:58
  • $\begingroup$ What do you mean with the "worth" of an egg? The market price? $\endgroup$
    – VARulle
    Commented Mar 14, 2023 at 0:05

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In economics there is phenomenon that we call the law of one price. Law of one price states that in absence of any transportation costs, market frictions and allowing for free trade a good has to have the same price everywhere.

This is because even if in some location production of eggs would be more expensive, a country with a comparative advantage would just specialize in production of eggs, and eggs would flow from countries where they are cheap to countries where they are expensive until price would completely equalize. However, what makes the prices to equalize is trade not necessarily equality of demands for eggs everywhere.

Nonetheless, in real world you would not see prices of eggs equalize as its costly to transport them, there might be market frictions, there are trade restrictions and so on. Hence in real life egg would not have the same real price everywhere.

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