. (3) Industry differences exist. Domestic prices respond more to productivity changes in industries where competition is … foreign (U.S.) influences (the law of one price), as opposed to domestic factors (i.e., labour, energy costs and productivity … and the law-of-one-price rule: both domestic factors (such as input prices and productivity) and foreign factors (such as …

costs, and productivity growth). It finds that both forces exert important influences on Canadian prices. The responses … differ across industries. Prices of domestically produced goods are more sensitive to their U.S. counterparts if the industry …