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Economics · Oct / Nov 2016 · Paper 13 · Question 28

2281Globalisation and trade restrictions

A Japanese car manufacturer decided to produce its cars in a factory in Europe. What would not be a reason why they might have chosen to do this?

  1. Acheaper wage costs in Europe
  2. Bthe availability of raw materials
  3. Cto gain external economies from skilled labour in Europe
  4. Dto increase Japanese self-sufficiency

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Correct answer: D. to increase Japanese self-sufficiency

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