Question

Assume you have recently been hired as a logistics manager for Primos & Cousins USA, a company that ships U.S. livestock feed to Mexico and imports Mexican products like molasses. Your uncle who is a real know-it-all has been reading about free trade zones. He tells you that he thinks P&C USA has three choices with regard to shipping goods to and from Mexico. First, they can ship them direct using trucks and rail to move goods across the border. Second, they can ship through free trade zones. Third, they can create their own free trade zone that would be owned, operated, and managed by the company exclusively for their own use. He wants to know what you think about his bright ideas.

Answer 1

To cut cost and gain maximum, I will go for first choice. Using trucks and rail to move goods across the border . It will take comparatively low cost than to creating his own infrastructure and logistics center by the P& C , USA. All the necessary, formalities will be conducted by respective authorities and hence low problem will have to face .

It will also require only to handle the documentation related tasks and our vendor in respective stations and places. Ultimately, this first choice will be cut the operational cost for ourselves and hence good opportunity.