An American investing in a London-based company is an example of interest arbitrage.

Name: An American investing in a London-based company is an example of interest arbitrage.
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Investing in a London-based company by an American is an example of foreign investment, not interest arbitrage. Interest arbitrage involves taking advantage of interest rate differences between countries, typically by borrowing in a low-interest rate country and investing in a higher-interest rate country.

An American Investing in a London-Based Company Is an Example