The locational arbitrage means when the currency exchange rate differs from location to location. Arbitrage is the simultaneous purchase and sale of the same asset in different markets in order to profit from a difference in its price.It involves buying low in one location and selling high in another, capitalizing on differences in prices, resources, or market conditions. In a municipal government, for example, the police, fire, public works, and parks departments may independently enter into lease obligations without central. "The basic definition of geoarbitrage is taking advantage of the difference in costs between two geographic locations, while having the same kind of lifestyle.