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

Question 66

Multiple Choice

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


A) labor costs are higher in the importing country.
B) the final prices of the good are adjusted for inflation.
C) assembled goods qualify for lower freight rates.
D) duties are assessed at lower rates for unassembled goods.
E) local content used in production is low.

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