Neon Inc Considers Two Foreign Markets for Expansion

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