Arbitrage is:
A) the practice of profiting from differences in costs and process across borders
B) a process of negotiation between different interests
C) a judgment made within a national legal system when contract disputes arise between parties in a cross-border relationship
D) none of these

Question

Quizplus · Accepted Answer

Arbitrage refers to the practice of exploiting differences in prices, costs, or processes between different markets or jurisdictions. This is often done by buying low in one market and selling high in another, taking advantage of the price difference to make a profit. Cross-border arbitrage is when this practice occurs between different countries. Choices B and C do not accurately reflect the meaning of arbitrage.

Arbitrage Is