A Marketer May Face Lower Costs by Shipping Unassembled Goods

question 52

Multiple Choice

A marketer may face lower costs by shipping unassembled goods to a free trade zone (FTZ) in an importing country because:

• A) locally produced components may not be used in production.
• B) wages may be lower in the importing country.
• C) FTZs levy higher taxes and surcharges on imported goods.
• D) ocean transportation rates may not be affected by the weight and volume of the components.
• E) duties may be assessed at a higher rate for unassembled goods.

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Definitions:

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