Entrepôt
From Wikipedia, the free encyclopedia
An entrepôt (French, literally warehouse) is a trading centre, or simply a warehouse, where merchandise can be imported and exported without paying import duties, often at a profit. This profit is possible because of trade conditions, for example, the reluctance of ships to travel the entire length of a long trading route, and selling to the entrepôt instead. The entrepôt then sells at a higher price to ships travelling the other segment of the route.
This was especially true in the Middle Ages. There was demand for spices, but a long trade route led to a much higher market price than the original buying price. This led to an attractive profit for those who bothered to travel the entire route constantly.
Singapore, Hong Kong and the Cape of Good Hope were prominent examples in history and still are today to varying degrees.
[edit] See also
 |
This economics or finance-related article is a stub. You can help Wikipedia by expanding it. |
