If the euro continues to remain strong against the U.S. dollar, which of the following strategies would make the most sense for BMW?
A) It might be advantageous for BMW to consider exporting from Germany to the United States to take advantage of cheaper costs.
B) It might increase its manufacturing capacity in the United States to take advantage of the cheaper dollar.
C) It might consider raising prices in the United States to earn more profits for BMW.
D) It really doesn't make any difference to BMW since consumers will buy the cars no matter what they cost.
B) It might increase its manufacturing capacity in the United States to take advantage of the cheaper dollar.
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Which of the following describes the infant industry argument for protectionism?
A) Domestic producers require time to gain experience and lower their unit costs; this will allow these producers to compete successfully in international markets. B) Domestic producers in high-wage countries must be protected from foreign producers in low-wage countries to produce a level playing field. C) An industry must be protected in its early stages of development so that firms can compete with government-subsidized foreign competition. D) Some strategic industries must be protected to ensure adequate supplies of resources needed for national defense in emergencies.
The supply for products that exhibit cost externalities is generally ________ the supply for products that do not
A) greater than B) less than C) the same as D) greater or less (depending on the market) than