A German manufacturer has developed the next generation of hand held computers,and retailers in Europe have enjoyed its success with minimal promotion.The manufacturer wants to market it in North America,but the tariffs are too high.Which of the following would be the German company's best option?
A) Supply only the markets in Europe
B) Wait until NAFTA has reduced tariffs
C) Seek a free trade zone in Central America to assemble the item
D) Sell to Asian markets
E) Concentrate on selling globally in duty-free shops

Question

Quizplus · Accepted Answer

Seeking a free trade zone in Central America to assemble the item would allow the German manufacturer to avoid high tariffs from shipping the finished product from Europe to North America. This would make it more cost-effective to market their product in North America. Additionally, assembling the item in a free trade zone would also provide flexibility for the manufacturer to ship to other markets in the Americas.

A German Manufacturer Has Developed the Next Generation of Hand