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place; room; margin; scope
この問題には改善の余地がまだ残されているはずだ。
There should still be room for improvement on this issue.
彼の有罪は明らかで弁解の余地はないと思われる。
His guilt is clear and there seems to be no room for excuse.
交渉の余地を残しておくことも戦略の一つだろう。
Leaving room for negotiation is also a strategy.