Which of the following is a reason why a foreign truck
Manufacturer might want to acquire or construct a plant
In the United States?
I.By having a plant in the United States, the
Manufacturer will avoid the U.S.25% tariff on imported
Pickup trucks.
II.The manufacturer wants to take advantage of lower
Wages in the United States.
III.U.S.consumers will buy only U.S.made pickup
Trucks.

Question

Which of the following is a reason why a foreign truck
Manufacturer might want to acquire or construct a plant
In the United States?
I.By having a plant in the United States, the
Manufacturer will avoid the U.S.25% tariff on imported
Pickup trucks.
II.The manufacturer wants to take advantage of lower
Wages in the United States.
III.U.S.consumers will buy only U.S.­made pickup
Trucks.

Quizplus · Accepted Answer

The only reason mentioned in the options for a foreign truck manufacturer to acquire or construct a plant in the United States is to avoid the 25% tariff on imported pickup trucks. Therefore, option I is the correct choice. The other options, including lower wages in the United States and the preference of U.S. consumers for locally-made pickup trucks, are not mentioned and cannot be assumed.

Which of the Following Is a Reason Why a Foreign