A Company Wants to Reduce Shipping Costs by Producing Goods

question 74

Multiple Choice

A company wants to reduce shipping costs by producing goods closer to their customers in foreign countries. This strategy would reduce transportation costs and storage costs. The company is engaging in which strategy?

• A) Franchising
• B) Exporting
• C) Foreign direct investment
• D) Barter agreement
• E) Licensing

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Definitions:

Activate Warranty

The process of making a warranty valid or enforceable, often by registering a product or service with the manufacturer or provider.

Third-Party Beneficiaries

Individuals or entities that, although not a direct party to a contract, stand to benefit from the contract's execution or terms.

Warranties

Warranties are guarantees made by a seller that the goods or services offered meet certain quality standards and assurances about the product or service's condition.

Implied Warranty

A legal concept that guarantees a product will meet basic standards of performance and quality without being explicitly stated.