By Shipping Unassembled Goods to a Free Trade Zone (FTZ)

question 26

Multiple Choice

By shipping unassembled goods to a free trade zone (FTZ) in an importing country, a marketer can lower costs because:

• A) labor costs are higher in the importing country.
• B) the final prices of the good are adjusted for inflation.
• C) assembled goods qualify for lower freight rates.
• D) duties are assessed at lower rates for unassembled goods.
• E) local content used in production is low.

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Definitions:

Personal Electronics

Devices intended for individual use, typically for entertainment, communication, or function, such as smartphones, laptops, and tablets.

Collaborative Writing

The act of jointly producing a document or piece of content by multiple authors or contributors.

Videoconferencing

The holding of a conference among people at different sites by using computer networks to transmit audio and video data.

Simultaneously

Occurring, operating, or done at the same time; actions or processes that run in parallel.