Thanks for all the help you guys. Figured out besides the exchange levying its own fees, transferring from bitcoin wallet to bitcoin wallet across exchanges or otherwise will be charged according to the blockchain transaction fee we pay to the miners based on "block size" or some such which I don't really understand(do u guys know how it influences processing power? how was it coded keeping that in mind, if at all it's that?) and the transaction amount itself.

I loved your disparaging comments. Thanks for the information though! I believe I have to get my terminology up to scratch real fast and soon. I do suspect slightly that they made sense to you, but I understand.
So, confirming once again, the exchange I use to buy btc from will have a certain fee policy and then moving money from one wallet(the one I obtain on opening an account with that exchange) to a different wallet(could be a stand alone/offline cold wallet or a different wallet with a different exchange) will incur the small blockchain transaction fee(0.0001 or higher? whats the general computation algorithm?) and then I can use arbitrage and the likes, less fees. Correct?

Is it possible to move coins from a wallet account tied to an exchange in a specific country to a wallet account tied to a different exchange in a different country possibly and then trade on that? At which point would the transaction fee be levied in such a system?
Also, would like it if someone could shed light on the concept of digitally signing off on a wallet to show proof of solvency? Extending that, how do I create a cold wallet account? third party app/web app/paper?