Scenario: Trader's Paradise
Trader's Paradise is a global merchant that sells a variety of products.The company operates in 48 different countries (some developed,some developing)and some former communist countries.The company faces substantial risks given differing conditions in foreign exchange markets.
-If Trader's Paradise purchases and sells the European Union euro simultaneously in different markets for profit,it would be engaging in currency ________.

Question

Quizplus · Accepted Answer

When a company purchases and sells the same currency simultaneously in different markets for profit, it is engaging in currency arbitrage. This involves taking advantage of discrepancies in exchange rates between different countries or markets.

Scenario: Trader's Paradise Trader's Paradise Is a Global Merchant That Sells a Variety