Question: he most competitively effective and very likely most profitable long - term approach to reduce or eliminate the impact of paying tariffs on pairs imported
he most competitively effective and very likely most profitable longterm approach to reduce or eliminate the impact of paying tariffs on pairs imported to a company's distribution warehouse in Latin America is to
lower the SQ rating on all pairs sold in Latin Americano tariffs have to be paid on branded footwear having an SQ rating of stars or below.
pursue a strategy of selling fewer pairs in Latin America than rival companies, which will them keep the company's costs for import tariffs lower than those of rivals and give the company a low tariff cost advantage on its sales in Latin America.
cut distribution and warehouse expenses and marketing expenses per pair sold in Europe Africa by enough to cover someall of the tariff costs.
raise the company's selling price of footwear in Latin America by the full amount of the tariff and pass all tariff costs along to the Latin American purchasers of the company's footwearthis strategy has the advantage of completely eliminating the company's exposure to import tariffs in Latin America.
build production capacity in Latin America and then expand the facility's capacity as may be needed to supply all or at least most of the pairs the company intends to try to sell in Latin America.
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