Which of the following condition that is likely to force the U.S. firms to establish a subsidiary in the foreign country even if production costs are higher in a foreign country. A. The host government of that country increases all quotas. B. The host government of that country eliminates all quotas. C. The host government of that country eliminates all tariffs. D. The host government of that country reduces all quotas.

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA1: International Financial Reporting Standards
Section: Chapter Questions
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Which of the following condition that is likely to force the U.S. firms to establish a subsidiary in the foreign country even if production costs are higher in a foreign country.

A.

The host government of that country increases all quotas.

B.

The host government of that country eliminates all quotas.

C.

The host government of that country eliminates all tariffs.

D.

The host government of that country reduces all quotas.

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