Question
Consider the implications of parity conditions holding and how one could take advantage of that through arbitrage. Explore an example, of some market imperfections that
Consider the implications of parity conditions holding and how one could take advantage of that through arbitrage. Explore an example, of some market imperfections that exist and how you could exploit that to make some profit. I call the ability to exploit market imperfections through developing an idea as "product arbitrage".
Example: labor is cheaper in India at let's say $0.5 per hour, a person can create a business where people make orders on a product in the US at US prices, but it is manufactured in Bangladesh and shipped to the US. If shipping and taxes are less than the product price, I would expect to make profits. This product in my case will be tailored suits.
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