Minimizing Trade Barriers (Scenario)
National Appliance Corporation (NAC) needs to build a new manufacturing facility to meet the increasing demand for professional-grade appliances. NAC managers are considering building the facility in Mexico but are hesitant because of the high tariffs involved. Another possible location for the facility is India; however, the country also imposes high tariffs. Wherever NAC builds a plant, parts will need to be imported from other nations.
Which of the following must NAC ensure in order to reduce exposure to trade barriers?
◦ reduced production
◦ strong emphasis on quality
◦ accurate product classification
◦ obtaining patents for inventions
Flamingo (Chilean National Zoo)