MERCOSUR (Scenario)
Bravo Luggage Company is a Latin American firm based in Buenos Aires, Argentina. Bravo has seen a sharp increase in orders over the last few months and needs to increase the amount of material imported from other countries. Currently, the materials used to manufacture Bravo luggage come from suppliers in Paraguay. Bravo managers have been approached by suppliers from Mexico and China who are both offering very competitive prices on materials.
-Which of the following should be considered when making the decision to use a MERCOSUR supplier or a non-MERCOSUR supplier?

Question

Quizplus · Accepted Answer

Tariffs are taxes imposed on imported goods, and they can significantly impact the cost of materials. Bravo needs to consider whether the additional tariffs on non-MERCOSUR suppliers will offset any savings in material costs.

MERCOSUR (Scenario) Bravo Luggage Company Is a Latin American Firm Based in Based