Given a text T, and several options, according to the question posed in the text T to choose the most appropriate option from the options as the answer, please directly output the most appropriate option, do not need to output the explanation.

Cate Stephenson is an analyst in the economics research division of an international securities firm. She is conducting research on the regulatory environment in certain European countries. Stephenson begins with an analysis of Genovia.Genovia has recently introduced a new accounting statute. In Genovia, there is an independent regulator - “Le regulateur.” Le regulateur is not a self-regulating organization (SRO). There is also an SRO – “L'organisation.” L'organisation is not an independent regulator.In her research report, Stephenson makes the following statements:Statement 1:Le regulateur has been given legal authority by the government to enforce the new statute.Statement 2:L'organisation issues administrative regulations related to the new statute using government funding.Statement 3:L'organisation has member companies that accept the authorization of L'organisation to set and enforce rules and standards. Stephenson and her supervisor discuss the intended and unintended effects of implementing the new statute, and Stephenson makes two comments.Comment 1:It is likely that some unintended consequences will be identified in regulatory filings prior to implementation of the new legislation.Comment 2:Indirect costs arise because of unintended consequences and may result in high unanticipated costs.Stephenson reads a report titled "International Trade;' which has three sections about Genovia's policies and regulations.The first section of the report discusses policies that legislators may implement to accomplish Genovia's objective of promoting free trade on industrial goods.The second section of the report covers corporate domicile. Stephenson learns that regulators in Genovia recently amended regulations to encourage foreign businesses to move their corporate domicile to Genovia.The third section of the report reviews the regulation of commerce. Genovia's goal is to establish an environment that encourages foreign businesses to increase trade with domestic businesses. Stephenson considers two features of Genovia's regulation of commerce.Feature 1:Recent court decisions have upheld financial liability and bankruptcy laws.Feature 2:A legal structure is in place governing contracts and each party's rights.Stephenson then reviews two initiatives by Genovia to improve domestic policies and regulations.The first initiative by Genovia is its passage of conflict of interest regulations. Regulators implement regulatory restrictions and regulatory mandates that apply to employees of securities firms. One of Stephenson's research colleagues writes reports on a company in which he owns shares.The second initiative by Genovia is to reduce pollution and promote renewable electricity generation. Two years ago, the government implemented taxes on fossil fuels and subsidies on hydropower and other renewables. Stephenson reviews the changes in sources of electricity production since the policies were introduced, shown in Exhibit 1.
| Exhibit l.Geno via's Domestic Electricity Generation Production |
| Sector | Year O | Year l | Year 2 |
| Fossil fuels | 462 | 446 | 426 |
| Hydropower | 186 | 231 | 273 |
| Other renewables | 97 | 120 | 154 |
| Total | 745 | 797 | 853 |
| Note：Amounts are inter a watt hours(TWh). |


 
By amending regulations to encourage foreign businesses to change their corporate domicile, regulators are encouraging regulatory:
Option A:capture.
Option B:arbitrage.
Option C:competition.

Answer: C