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Buying and selling goods or currencies across international borders at a profit is called:
AArbitrage
BArbitration
CAmortisation
DAppreciation
Answer & Solution
Correct answer: A. Arbitrage
1. Price differences across borders create an opportunity.
2. The same good can cost different amounts in two countries.
3. Buying and selling across international borders at a profit has a name.
4. This is known as arbitrage.
_Source: OpenStax Principles of Macroeconomics for AP Courses 2e (CC BY 4.0), Ch 15 'Exchange Rates and International Capital Flows'_
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