Neon Inc Considers Two Foreign Markets for Expansion

question 55

Multiple Choice

Neon Inc. considers two foreign markets for expansion. The first market has lesser taxes compared to the second along with more lenient trade regulations. Thus, Neon chooses the first market despite it being more distinct in terms of language and tradition. By choosing the first market, Neon exhibits a(n) __________.

• A)economic arbitrage
• B)cultural arbitrage
• C)administrative arbitrage
• D)capital arbitrage

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Definitions:

Ring Handle

A type of handle shaped like a ring, designed for easy grip and manipulation, often found on various tools or doors.

Thumb Handle

A part of a tool or device designed to be operated or held in place using the thumb, enhancing grip and control.

Restrictive Clothing

Clothing that is tight enough to interfere with circulation or breathing, potentially causing health problems.

Autoclave

A pressurized device designed to heat aqueous solutions above their boiling point to achieve sterilization.