EF manufactures and sells cars in Country X. Which of the following would improve its profitability?
A. Adoption of free trade principles by the government of Country X, resulting in the removal of tariffs on imported cars.
B. An increase in the sales tax levied by the government of Country X on the sale of new cars.
C. Introduction of legislation in Country X requiring improvements to the pay and conditions of the workers in car factories.
D. Withdrawal of one of EF's major competitors from selling cars to motorists in Country X.
Answer: D
