A boom in product liability suits and awards in the United States resu

QUESTION

A boom in product liability suits and awards in the United States resulted in a dramatic increase in the cost of liability insurance. Many business executives argue that this:

A. makes American businesses less competitive in the global marketplace.

B. offers American businesses greater protection from foreign competitors.

C. exposes consumers to greater product risks.

D. eventually makes it cheaper for foreign companies to do business in the United States.

E. discourages American companies from outsourcing jobs to less developed countries.

ANSWER

A
A boom in product liability suits and awards in the United States resulted in a dramatic increase in the cost of liability insurance. Many business executives argue that the high costs of liability insurance make American businesses less competitive in the global marketplace.