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:

Shared Actions

Activities undertaken together by a group of people or organizations towards a common goal.

Beliefs

Convictions or acceptances that something exists or is true, especially without proof.

Internal Integration

The process of ensuring that all aspects of an organization's operations and culture are aligned and cohesive, facilitating effective coordination and teamwork.

Shared Identity

The collective sense of belonging to a group or organization, characterized by shared values, goals, and practices, enhancing cohesion and loyalty.