A Chinese company that makes plastic garden furniture wants to market its products in a foreign country that has a high tariff barrier against imported plastic goods. One way the company can get around this problem is to ______.

Question

Quizplus · Accepted Answer

By entering into a licensing agreement with companies within the foreign country to produce the furniture there, the Chinese company can avoid the high tariff barrier on imported plastic goods since the furniture will now be produced locally within the foreign country. This enables the company to compete more effectively in the local market while minimizing the impact of the high tariffs. Hiring an export management team may help the company navigate the export process, but it is not a solution to the high tariffs. Violating the Foreign Corrupt Practices Act or submitting a complaint to the Chinese Department of Commerce are not viable options for circumventing the high tariffs.

A Chinese Company That Makes Plastic Garden Furniture Wants to Market