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

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.


Answer: wages may be lower in the importing country.


Learn More :