Suppose That Mickey's Clothing Moved Its Operations Out of Korea

Multiple Choice

Suppose that Mickey's Clothing moved its operations out of Korea and into China because of the lower wages in China. Now, the wages in Korea are such that it would be cheaper to manufacture the clothes in Korea than it is in China. This is an example of:

A) Transitory price fluctuations.
B) Short-run exposure.
C) Economic exposure.
D) Transactions exposure.
E) Forward exposure.