subject: What Is Geo Arbitrage? [print this page] Chances are that you are here looking for more information on geo arbitrage because you have just finished reading Timothy Ferriss worldwide best selling book, called 'The Four Hour Workweek', where he mentions geoarbitrage as a success means of freeing up your time and automating your income.
However, before we start looking into whether this is actually possible, let's take a closer look at what geo arbitrage actually is.
The dictionary defines 'arbitrage' as:
'The practice of taking advantage of a price difference between two or more markets: striking a combination of matching deals that capitalize upon the imbalance, the profit being the difference between the market prices.'
This means that we can safely define 'geo arbitrage' as:
'The practice of taking advantage of a price difference between two or more countries: capitalizing on the imbalance of market prices.'
Simply put, goods and labor do not cost the same amount in each country. There is opportunities to outsource jobs overseas that we currently have local staff doing - and save up to 80%!
Is Geo Arbitrage Possible?
So that is the theory behind it, but does it actually work?
The answer is a resounding yes, with tens of thousands of everyday people (not including a lot of big businesses), outsourcing their work overseas and saving a lot of money in the process.
And reason they are doing it, is because it really isn't that difficult. With the introduction of the internet and online outsourcing (or freelance) communities, it is really quite simple to quickly and easily find quality workers at a lot less than you would pay locally.
The benefits of geoarbitrage is that in hiring other people to do your work, you are freeing up your time to focus on more important areas of your business - which is sure to lead to a growing bottom line.
