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Supply Chain Glossary

Glossary  >  A  >  Arbitrage  


 

Arbitrage


Source: Procurement Glossary
Author: Paul Rogers
Institute: CIPS - UK

Courtesy of


 

This involves taking advantage of differences in price of the same commodity in different markets.  Traders may buy in one market and sell the identical product at a higher price in another market.  ‘Labour market arbitraging’ involves sourcing labour intensive goods or services from markets with lower labour costs in order to secure cost advantages.  See also Low Cost Country Sourcing.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 




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