ABSTRACT
This chapter considers the idea of corporate strategy as a process of arbitrage between markets where diverse types of asymmetry economic, cultural, administrative and geographical are exploited by corporate managers. The scope for arbitrage includes the differences that exist between countries and regions. Also, the chapter considers arbitrage as strategy apart from traditional generic strategies such as cost leadership and differentiation. Arbitrage is one of the popular ideas of modern economics, implementing the law of one price and keeping markets efficient. According to the law of one price in a competitive market, if two assets have equivalent risk and return, they should sell at the same price. If the price of the same asset is different in two markets, there will be arbitrageurs who will buy the asset cheaply and sell in the market where it is expensive.
