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Identify a Way by Which a Company Can Lower Costs

Question 83

Multiple Choice

Identify a way by which a company can lower costs by shipping unassembled goods to an FTZ in an importing country.


A) Ship smaller components by air carrier and larger components by ocean freight to reduce overall transportation costs.
B) If labor costs are lower in the importing country, substantial savings may be realized in the final product cost.
C) Have components manufactured in several countries and ship directly to distributor for assembly to lower manufacturing costs.
D) Declare components as obsolete inventory with no market value to lower import duties.
E) Reduce total shipment quantity count by reassembling goods onboard ocean vessel to reduce ocean transportation rates.

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