Markets whose physical separation or other characteristics make arbitrage impossible are called

Question

Quizplus · Accepted Answer

Segmented markets are separated by physical barriers or other characteristics such as legal restrictions, which make it impossible to take advantage of price differences between them through arbitrage. Foreign markets refer to markets located in different countries, and costless markets do not exist as all markets involve some costs, such as transaction costs.

Markets Whose Physical Separation or Other Characteristics Make Arbitrage Impossible