A USFirm Plans to Shift from Exporting to Production in China

question 11

Multiple Choice

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.

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Definitions:

Legal Trouble

Situations or circumstances in which an individual or entity is involved in legal proceedings or litigation.

Outsourcing

The business practice of hiring a party outside a company to perform services and create goods that traditionally were performed in-house by the company's own employees and staff.

Payroll

The total amount of wages and salaries paid by a company to its employees, as well as the process of calculating and distributing these payments.

Line Managers

Supervisors directly responsible for managing employees and overseeing their day-to-day work.