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.

---

Definitions:

Word-Superiority Effect

The phenomenon where words are more easily and accurately recognized than individual letters or non-words in perception tasks.

Letters

Written symbols representing sounds in a language, forming the building blocks of words.

Screen

A term broadly used to describe a barrier or surface on which images or data are displayed, as well as the process of evaluating or testing something.

Word-Superiority Effect

The phenomenon that words are easier to perceive and recognize accurately than individual letters or non-words, highlighting the influence of contextual knowledge in perception.