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Even If Production Costs Are Higher in a Foreign Country

Question 2

Multiple Choice

Even if production costs are higher in a foreign country, a U.S. firm may establish a manufacturing plant in the foreign country now if:


A) the host government of that country eliminates all quotas.
B) the host government of that country reduces all quotas.
C) the host government of that country increases all quotas.
D) the host government of that country eliminates all tariffs.

Correct Answer:

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