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larisa [96]
1 year ago
15

when firms from wealthy countries trade with firms from poor countries, they benefit from economic____.

Law
1 answer:
Ulleksa [173]1 year ago
7 0

Economic arbitrage occurs when businesses from wealthy nations trade with businesses from poor nations.

- In order to profit from a price differential, an investor will use the investment method of arbitrage to simultaneously buy and sell an asset in other marketplaces. The returns can be impressive when multiplied by a high volume, despite the fact that pricing variations are often tiny and transient.

- As an illustration, the stock of a phone firm trades on the NYSE for $25. It trades for $25.50 in the Shanghai Stock Exchange at the same time. The arbitrageur purchases the stock from the NYSE and sells it right away on the Shanghai market for a 50 cent profit.

To know more about arbitrage, kindly click on the link below :

brainly.com/question/14676030?referrer=searchResults

#SPJ4

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