Purchase Power Parity (PPP) is the theoretical exchange rate at which you can buy the same amount of goods and services with another currency. Therefore, when productivity differences are greater in the production of tradable goods than in the production of non-tradable goods, the country's currency with the higher productivity will appear to be overvalued of PPP (Ortiz, E. 2017).

Arbitrage is the simultaneous purchase and sale of the same asset in different markets to profit from tiny differences in the asset's listed price (Fernando, J. 2021).

Exchange rates impact several economic dimensions in countries such as China or Japan that have high levels of savings and, consequently, contribute capital to foreign countries. Is that good or bad? ... today and in the future? I ask because we tend to believe that receiving capital is good; capital leaving the country is bad.

Do you agree with these statements? Why?