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Explain why and how the existence of trade costs affects arbitrage.
Gross Domestic Product
The total value of all goods and services produced within a country in a specific time period, used as a broad measure of economic activity and health.
Free Trade
An economic policy that allows imports and exports to occur without governmental tariffs, quotas, or other restrictions, promoting international trade.
Foreign Investment
Capital investment made by individuals or entities based in one country into the businesses or assets of another country.
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