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If Natural Gas Produced in the U

Question 17

Multiple Choice

If natural gas produced in the U.S. was exported to countries in Asia and Europe, what factor would likely increase the price of that natural gas in the importing countries?


A) The U.S.would impose export charges on each unit of natural gas exported and those charges would be passed along to the importing countries.
B) Exporters in the U.S.would arbitrarily inflate the costs of production so that the importing countries would pay higher prices.
C) Importing countries would impose tariffs on the imported natural gas and those tariffs be passed along by exporting companies to importing countries.
D) Natural gas from the U.S.would have to be liquefied and transported in specially- designed ships to Asia and Europe, so transportation costs would increase the price of the imported natural gas in Asia and Europe.

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