Identify a Way by Which a Company Can Lower Costs

question 83

Multiple Choice

Identify a way by which a company can lower costs by shipping unassembled goods to an FTZ in an importing country.

• A) Ship smaller components by air carrier and larger components by ocean freight to reduce overall transportation costs.
• B) If labor costs are lower in the importing country, substantial savings may be realized in the final product cost.
• C) Have components manufactured in several countries and ship directly to distributor for assembly to lower manufacturing costs.
• D) Declare components as obsolete inventory with no market value to lower import duties.
• E) Reduce total shipment quantity count by reassembling goods onboard ocean vessel to reduce ocean transportation rates.

Recognize the roles and impacts of tariffs, quotas, and protectionist measures on global trade and national economies.

Identify the effects of trade measures on the price of domestic goods and the global economy.

Understand the influence of global marketing developments on international trade.

Recognize the role and functions of the World Trade Organization (WTO) in facilitating and regulating international trade.

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Definitions:

Preconventional Morality

The first level of Kohlberg's stages of moral development, characterized by an individual's obedience to rules based on the direct consequences to themselves.

Punishment Avoidance

A behavior modification strategy where the reduction or avoidance of undesirable consequences reinforces a behavior.

Early Maturing

The process of experiencing the onset of puberty earlier than the average age, which can have various social, psychological, and physical effects.

Preconventional Morality

According to Lawrence Kohlberg's theory, the first level of moral development in which behavior is governed by considerations of punishment and reward.