Question

By shipping unassembled goods to a Free Trade Zone (FTZ) in an importing country, why can marketers typically have lower costs?

A) Reduced transportation costs
B) Lower customs duties and taxes
C) Streamlined logistics processes
D) All of the above

Answer 1

option a,By shipping unassembled goods to a Free Trade Zone, marketers can reduce transportation costs, enjoy lower customs duties, and benefit from streamlined logistics, all of which contribute to lower overall costs.

Step-by-step explanation:

Marketers can typically have lower costs by shipping unassembled goods to a Free Trade Zone (FTZ) in an importing country due to reduced transportation costs, lower customs duties and taxes, and streamlined logistics processes. Shipping unassembled goods often takes up less space, enabling more efficient packing and thus reducing transport costs.

Additionally, FTZs often provide benefits such as duty deferral, duty elimination on re-exports, and no duty on waste, scrap, and yield loss. The simplification of logistics processes help companies avoid the complexities and delays associated with customs clearances outside FTZs. Overall, such factors work together in reducing costs and fostering a more efficient supply chain.