Question

Daniel owns a factory that produces coffee beans. After many years of successfully producing coffee, he noticed that the national market for coffee was saturated and wouldn’t increase any further. His production capacity was greater than the demand for his product. This was the scenario for the entire domestic coffee industry. Which national policy would help Daniel (and the coffee industry) to make use of this excess capacity?

A.
introducing protectionism policies
B.
decreasing taxes on coffee
C.
increasing global coffee trade
D.
decreasing road transport tariffs

Answer 1

Answer: C. increasing global coffee trade

Explanation: the answer is C. increasing global coffee trade, because we need to sell all coffee and in the country is not possible because of the saturated market, and Daniel need make use of the coffee to get earnings,

in the rest of answer you will find that Daniel can not sell the coffee, because off that the rest of answer is wrong.

Now keep in mind that a good mixture of all answer will be a better market for daniel but according to the question he need make use of this excess capacity, and he can do it selling all the coffee and like this not possible in the country we can find it in another country increasing global coffee trade