While smoking is on the decline in the United States, China is still puffing away madly. That's not because the government is eager to protect its citizens from the hazards of smoking. It's because China is eager to protect its own tobacco industry which is a state monopoly. Why did China announce in 2009 that it won't allow foreign companies to build new cigarette factories or enter joint ventures?
A) Because China is concerned about the negative effects of smoking
B) Because China wants to protect the economic profits its state monopoly makes
C) Because China wants to protect jobs
D) Because China regulates the tobacco industry

Question

Quizplus · Accepted Answer

China's state monopoly on tobacco production and sales generates significant profits for the government. Allowing foreign companies to enter the market would likely decrease the profits of the state tobacco industry. The decision to prevent foreign companies from entering joint ventures or building new factories is therefore motivated by economic concerns rather than a desire to protect citizens from smoking-related health issues.

While Smoking Is on the Decline in the United States