Toyota, based in Japan, would like to build a new factory and a new retail distribution center. Both or either of these may be built in the United States and in Canada. Currently, the U.S. dollar is weak compared to the Canadian dollar. Which of the following would be in Toyota's best interest?
A) build the cars in Canada and sell them in the United States
B) build the cars in the United States and sell them in Canada
C) build the cars in Canada and sell them in both countries
D) build the cars in the United States and sell them in both countries
E) build the cars in both countries and sell them in both countries

Question

Quizplus · Accepted Answer

B) Since transportation costs would be negligible here, it would behoove Toyota to build the cars where it would be cheaper to build them and to sell them where they could get the higher price.

Toyota, Based in Japan, Would Like to Build a New