The Costs of Production May Be Lowered If a Firm

question 74

Multiple Choice

The costs of production may be lowered if a firm ships unassembled goods to a free trade zone (FTZ) in an importing country because:

• A) wages and other overheads may be higher in an FTZ.
• B) locally-produced components do not qualify for tariffs.
• C) unassembled goods may qualify for lower freight rates.
• D) the finished goods are exported to other countries.
• E) goods imported in an FTZ qualify for the same level of tariffs as other imported goods.

---

Definitions:

Management by Best-Seller

A management approach where strategies and practices are adopted based on popular business books, often focusing on the latest trends or successful leader insights.

Management Theory

An interdisciplinary study or concept that focuses on understanding, predicting, and controlling human behavior in organizational settings.

Contingency Approach

A management theory that suggests the best way to manage an organization depends on the specific circumstances and factors facing the organization.

Contingency Theory

A theory that suggests the effectiveness of a leadership style is dependent on the context and situations in which it is applied.