Question

The most attractive way to reduce or eliminate the impact of paying tariffs on pairs imported to a company's distribution warehouse in Latin America is to only sell the company's branded footwear at its Internet site for Latin America; no import tariffs have to be paid on Internet sales--import tariffs only have to be paid on footwear shipped from the company's Latin America warehouse to footwear retailers in Latin America. opursue a strategy of selling fewer pairs in Latin America than rival companies, which will then keep the company's costs for import tariffs in Latin America lower than those of rivals and give the company a low tariff cost advantage on its sales in Latin America. simply stop selling branded and private-label footwear in Latin America. O pursue a strategy of only selling footwear with an S/Q rating of just 1 star or 2 stars in Latin America--no tariffs have to be paid on imported branded footwear having an S/Q rating of 2- stars or below build a production facility in Latin America and then expand its capacity as may be needed so that the production facility has the capability to supply all (or at least most) of the branded and private-label pairs the company intends to try to sell in Latin America.

Answer 1

Build a production facility in Latin America and then expand its capacity as may be needed so that the production facility has the capability to supply all (or at least most) of the branded and private-label pairs the company intends to try to sell in Latin America is the most attractive way to reduce or eliminate the impact of paying tariffs on pairs imported to a company's distribution warehouse in Latin America.