Question

A U.S. firm plans to shift from exporting to production in China to serve the Chinese market. Which of the following statements would best explain this decision?

A) China's currency is appreciating relative to the U.S. dollar.

B) The firm is nearing capacity utilization in its U.S. plant.

C) The company need not alter its products for the Chinese market.

D) Transportation costs have become low relative to production costs.

Answer

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