Question

Which of the following strategies was employed by the United States to regain its lost market share for capital goods by the late 1990s?
A. Funding the communist nations
B. Restructuring its industries to be more lean and mean
C. Decreasing its exports and increasing its imports
D. Raising average U.S. tariffs on more than 20,000 imported goods by 60%
E. Provoking increased protectionism from other countries

Answer 1

Answer:

B) Restructuring its industries to be more lean and mean

Explanation:

During the 1980s, the US suffered a severe decline in their market share of capital goods specially in the computer and machinery markets. During the Clinton presidency, American companies started to respond by restructuring themselves. American firms became more lean and mean, i.e. more efficient. By the late 1990s, American companies had regained a solid position in the market for capital goods, specially in the high tech industry, including software and hardware.