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USCorporations Have Been Pouring Investments into China to Build Manufacturing

Question 10

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U.S.corporations have been pouring investments into China to build manufacturing facilities to produce goods for the local and export markets.Since economists expect the Chinese yuan to appreciate against the dollar in the future,the forthcoming Chinese yuan profits of U.S.MNEs when converted to U.S.dollars will be high.This is an example of U.S.companies cutting costs by _____.


A) minimizing factor input costs
B) generating revenue
C) acquiring other companies
D) exploring joint ventures
E) reacting to exchange rate movements

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