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Why “Arbitrage Operations” in Fx for international Trade?

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Question ajoutée par VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.
Date de publication: 2014/09/17
Vinod Jetley
par Vinod Jetley , Assistant General Manager , State Bank of India

In finance, arbitrage is the activity of buying shares or currency in one financial market and selling it at a profit in another.

Similarly,in International Trade,arbitrage is the activity of buying commodities in one market and selling it at a profit in another.

I know a person who  buys even a branded product (like Colgate Toothpaste) in one market and sells it at a profit in another.

Nasir Hussain
par Nasir Hussain , Sales And Marketing Manager , Pakistan Pharmaceutical Products Pvt. Ltd.

Good Day!!!

Mr. Vinod is right ......... There are companies here who produce here and sell it in other countries to get the maximum profit. Similarly companies like St. Micheal/Next (Garments) ......... make productions in south east Asia and sells it throughout the world and capitalize the difference.

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