Plethora Inc.,a well-established and reputed multinational enterprise (MNE),is headquartered in a highly developed economy.It wants to start its operations in United Bejukistan,which has been recognized as one of the less-developed nations in the world.How will this strategic move most likely affect Plethora Inc.?
A) It will be able to benefit from economic arbitrage.
B) It will be able to successfully leverage its competitive advantage from economies of standardization.
C) It will be able to replicate its existing business model easily.
D) It will be able to easily sell products for which demand varies by income.

Question

Quizplus · Accepted Answer

Plethora Inc. will most likely be able to benefit from economic arbitrage. Companies from wealthy countries also trade with companies from poor countries to benefit from economic arbitrage.