arbitrage  buying in a market where the price is low and selling in a market where the price is high to profit from the price differential
capital control  a government-imposed restriction on the free movement of financial assets between nations
interest rate parity(IRP)  the condition under which similar financial assets have the same interest rate when meas­ured in the same currency
open economy  an economy in which a relatively large fraction of the GDP is devoted to internationally tradable goods