The most likely reason why Japanese automobile company Yoshimatsu established production facilities in Tennessee was to:...
The most likely reason why Japanese automobile company Yoshimatsu established production facilities in Tennessee was to:
Multiple Choice
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reduce transportation costs.
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reduce transactions costs.
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circumvent trade barriers.
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All of the options
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None of these reasons can explain Yoshimatsu's decision
Homework Answers
As per my analysis, the mostly likely hood reasons can be 1 and 3
1) because the production facility can reduce the transporation cost to physically transfer the goods
2) cannot reduce transaction costs as they use local labour and US labor cost is higher than japan
3) and can help circumvent trade barriers
so the answer is 1 and 3
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