A Marketer May Face Lower Costs by Shipping Unassembled Goods

question 20

Multiple Choice

A marketer may face lower costs by shipping unassembled goods to a free trade zone (FTZ) in an importing country because

• A) locally produced components may not be used in production.
• B) labor costs may be lower in the importing country.
• C) FTZs levy higher taxes and surcharges on imported goods.
• D) ocean transportation rates may not be affected by the weight and volume of the components.
• E) duties may be assessed at a higher rate for unassembled goods.

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Definitions:

Enzyme Activity

The measure of the amount of substrate converted to product by an enzyme in a given time, crucial for biochemical processes.

Protein-Digesting Enzyme

An enzyme, also known as a protease, that breaks down proteins into smaller peptides or amino acids, crucial for many biological processes including digestion.

Stomach Juice

A mix of hydrochloric acid, enzymes, and mucus produced in the stomach, crucial for the digestion of food and killing pathogens.

Oxidoreductases

Enzymes that catalyze the transfer of electrons from one molecule (the reductant) to another (the oxidant), crucial in both energy production and detoxification.