Question

Zenovia inc., a well-established and reputed multinational enterprise (mne), is headquartered in a highly developed economy. it wants to start its operations in united marva, which has been recognized as one of the less-developed nations in the world. how will this strategic move most likely affect zenovia inc.?

Answer 1

This strategic move will positions Zenovia Incorportation to enjoy and benefit from economic arbitrage. Economic arbitrage refers to simultaneous buying and selling of an asset or a product in order to make profit from the price difference. Arbitrage strategy profits by exploiting the price differences of a particular product in different markets.