1.

The most competitively effective and very likely most profitable long-term approach to reduce or eliminate the impact of paying tariffs on pairs imported from a production facility in a different region to a company's distribution warehouse in Europe-Africa is to: 12

A)cut the expenses of distribution and warehouse operations and marketing expenses per pair in Europe Africa by enough to cover some/all of the tariff costs.

B) pursue a strategy of selling fewer pairs in Europe-Africa than rival companies, which will then keep the company's costs for import tariffs in Europe-Africa lower than those of rivals and give the company a low tariff cost advantage on its sales in Europe-Africa.

C) only sell the company's branded footwear at its Internet site for Europe-Africa; no import tariffs have to be paid on Internet sales--import tariffs only have to be paid on footwear shipped from the company's Europe-Africa distribution center to footwear retailers in Europe-Africa.

D )build and equip a production facility in Europe-Africa and then expand it as may be needed to supply all (or at least most) of the pairs the company intends to try to sell in Europe-Africa.

E) raise the selling prices of all footwear being marketed in Europe-Africa by enough to cover some/all of the tariff costs.

2.

2. Which one of the following is not a factor that helps determine a company's credit rating? 13

Its current ratio

Its debt to assets ratio

Its default risk ratio

Its default risk rating (high, medium, low)

Its interest coverage ratio