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By Shipping Unassembled Goods to a Free Trade Zone (FTZ)

Question 52

Multiple Choice

By shipping unassembled goods to a free trade zone (FTZ) in an importing country, a marketer can typically lower costs because


A) labor costs are higher in the importing country.
B) the final prices of the goods are adjusted for inflation.
C) use of unassembled goods gives the marketer immunity from dumping penalties.
D) duties are typically assessed at lower rates for unassembled goods.
E) local content used in production is low.

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