In the early 2000s, Chinese companies exported much of their output because… Group of answer choices China is in the Northern Hemisphere and goods naturally flow downwards toward the equator and East to West due to the Earth’s rotation. They tended to manufacture under license for foreign buyers. They were all wholly owned subsidiaries of foreign multinationals. Chinese consumers are very hard to please.
Question
In the early 2000s, Chinese companies exported much of their output because… Group of answer choices
China is in the Northern Hemisphere and goods naturally flow downwards toward the equator and East to West due to the Earth’s rotation.
They tended to manufacture under license for foreign buyers.
They were all wholly owned subsidiaries of foreign multinationals.
Chinese consumers are very hard to please.
Solution
The most accurate answer is: They tended to manufacture under license for foreign buyers.
Here's why:
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The first option is incorrect because the geographical location or Earth's rotation doesn't determine the flow of goods. Trade is determined by factors such as demand, supply, trade policies, etc.
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The second option is correct. In the early 2000s, many Chinese companies were manufacturing goods under license for foreign buyers. This means that they were producing goods that were designed by foreign companies, and these goods were then exported to be sold in foreign markets.
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The third option is incorrect. While some Chinese companies were subsidiaries of foreign multinationals, not all of them were. Many were independent companies.
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The fourth option is incorrect. While consumer preferences can influence trade, it's not accurate to say that Chinese companies exported much of their output because Chinese consumers are hard to please. This statement is also a generalization that may not apply to all Chinese consumers.
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