Explain Why and How the Existence of Trade Costs Affects

question 31

Essay

Explain why and how the existence of trade costs affects arbitrage.

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Definitions:

Organizational Control

The processes, structures, and guidelines put in place within an organization to guide the behavior of its members and achieve its objectives.

Business Ethics

The study and examination of moral and ethical problems that arise in a business environment, guiding the behavior of individuals and organizations.

Codes of Ethics

Written policies or rules that outline expected moral behavior and guide decision-making within an organization.