Brazil is one of the world's lowest cost producers of ethanol and soybeans.Japanese corporations have heavily invested in Brazil to lease large tracts of land to grow soybeans for export to Japan,where they are used to derive products such as soy sauce and chicken feed.These Japanese companies are cutting costs by _____.

Question

Quizplus · Accepted Answer

Japanese companies are cutting costs by minimizing their factor input costs, specifically through leasing large tracts of land in Brazil to grow soybeans. This allows them to take advantage of the lower production costs in Brazil compared to other countries.

Brazil Is One of the World's Lowest Cost Producers of Ethanol