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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.
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1. It is a symbol of freedom
2. It is the right to be legally justified or safe
3. It allows people to be protected from danger or suspicious situations and people
4. it provides documentation long-term on serious issues
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