Toyota produces $1\mathrm{.}2$ million vehicles per year in the United States. Which best explains why Toyota has chosen to produce its vehicles in the United States rather than exporting from Japan?

Multiple Choice

Toyota has decided to forgo markets in Europe and Asia in order to focus exclusively on the United States.

Toyota feels that production in China would damage its reputation for quality.

Toyota believes that designing its vehicles in Japan is the main way generate profits.

Toyota is concerned that its ability to export from Japan could be compromised by U$.$S$.$ tariffs and quotas.

Toyota is trying to avoid Japanese competitors like Nissan and Honda by selling in the United States.