A basket of goods sold in the Eurozone is priced and weighted as shown in the following table: 
And the same basket for the United States is priced and weighted as shown in the following table: 
The exchange rate for $/€ is 1.25.
Is it preferable for an arbitrageur to purchase goods in the United States or in the Eurozone? To which of them should the arbitrager resell these goods?
Correct Answer:
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