Question: The most competitively effective and very likely most profitable long - term approach to reduce or eliminate the impact of paying tarifts on pairs imported

The most competitively effective and very likely most profitable long-term approach to reduce or eliminate the impact of paying tarifts on pairs imported to a company's distribution warehouse in Europe-Africa is to
purnue a strategy of selling footwear to retailers in Europe-Africa at a wholesale price of $39 per pair or less--no import tariffs have to be paid on branded pairs shipped to footwear retailers in Europe-Africa when the wholesale price is below $40 per pair.
pursue a strategy of selling fewer pairs in Europe-Africa than rival companies, which will then keep the company's costs for import tarifts in Europe-Africa lower than those of rivals and give the company a competitive advantage based on low tariff costs on its sales in Europe-Africa.
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.
out distribution and warchouse expenses and marketing expenses per pair sold in Europe Africa by enough to cover some/all of the tariff costs.
raise the selling prices of all footwear being marketed in Europe-Africa by enough to cover some/all of the tariff costs.
 The most competitively effective and very likely most profitable long-term approach

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!