Locational arbitrage


 

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Locational arbitrage

Attempt to exploit discrepancies in exchange rates between banks.



Locational arbitrage

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Allocational efficiency

Allocational efficiency

The effectiveness with which a market channels capital toward its most productive uses.


Locational advantage

Locational advantage

Any reason for a firm to locate production, or a stage of production, in a particular place, such as availability of a natural resource, transport cost, or barriers to trade. May explain why a country's firms succeed in trade, or why a multinational firm locates there.




 
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