Which of the Following Is a Way That a Company

question 2

Multiple Choice

Which of the following is a way that a company can lower costs by shipping unassembled goods to an FTZ in an importing country?

• A)have components manufactured in several countries and ship directly to distributor for assembly to lower manufacturing costs.
• B)reduce total shipment quantity count by reassembling goods onboard ocean vessel to reduce ocean transportation rates.
• C)declare components as obsolete inventory with no market value to lower import duties.
• D)tariffs may be lower because duties are typically assessed at a lower rate for unassembled versus assembled goods.
• E)ship smaller components by air carrier and larger components by ocean freight to reduce overall transportation costs.

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Definitions:

Foreign Exchange Rate

The price of one country's currency in terms of another country's currency.

Controlling Investor

An individual or entity that holds a significant portion of a company's shares, yielding the power to influence or direct the company's management and decisions.

Parent

In a business context, the term usually refers to a parent company that holds a controlling interest in subsidiary companies.