Why do people carry out arbitrage?
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Why do economists often assume that there are no possibilities for arbitrage? What is the relationship between arbitrage and the asset-pricing formula?
In countries where the monetary system has broken down, what are some alternatives to which people have resorted to carry out exchange?
Read the attached article âSense and Nonsense in the Globalization Debateâ by Dani Rodrik, and answer the following questions:http://www.columbia.edu/itc/sipa/S6800/courseworks/foreign_rodrik.pdf
2.(10 points) Explain the following statement: âtrade exerts pressure towards another kind of arbitrage as well: arbitrage in national norms and social institutions.â (p. 27). Why are differences in national practices and institutions a possible source of comparative advantage?