Entrepot
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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 entrepot instead. The entrepot then sells at a higher price to ships travelling the other segment of the route.
In the Middle Ages, this was especially true. 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 and the Cape of Good Hope were prominent examples in history and still are today to varying degrees.
See also
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