Apple Computer Operates an In-Bond Facility in Nuevo Laredo,Mexico,where It

question 48

Multiple Choice

Apple Computer operates an in-bond facility in Nuevo Laredo,Mexico,where it processes,packages,assembles,and even repairs Apple computers.Once the tasks are completed,Apple sends the goods back to the United States without ever paying exporting or importing fees from either country.Such an arrangement (facility) is popularly called:

• A)companaros.
• B)an EX-IM warehouse.
• C)a refuge zone.
• D)Maquiladoras.
• E)a Norazi facility.

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Definitions:

Floatation Costs

Expenses incurred by a company in issuing new securities, including fees to underwriters, legal fees, and registration fees.

Firm Commitment

An agreement where an underwriter guarantees to buy and sell all securities from the issuing company at an agreed-upon price.

Underwriter

A financial specialist or institution that assesses and undertakes the risk of another entity, often seen in insurance and securities issuances.

Direct Costs

Expenses that can be directly attributed to the production of goods or services, such as materials and labor.