Question

The most attractive way to reduce or eliminate the impact of paying tariffs on pairs imported to a company's distribution warehouse in Europe-Africa is to?

1) Negotiate lower tariffs with the importing country
2) Find alternative suppliers in countries with lower tariffs
3) Increase the selling price of the imported pairs to cover the cost of tariffs
4) Apply for government subsidies to offset the cost of tariffs

Answer 1

The most attractive method to mitigate tariffs involves considering options such as negotiating lower tariffs, sourcing from countries with lower tariffs, or obtaining government subsidies. Each strategy has its own advantages and should align with the company's international trade objectives.

Step-by-step explanation:

The impact of paying tariffs on imported goods is a significant consideration for companies that operate internationally. The World Trade Organization (WTO), successor to the General Agreement on Tariffs and Trade (GATT), aims to reduce these barriers to trade. While tariffs are meant to protect local industries and consumers, they can also impact global competitiveness by making imported products more expensive.

Negotiating lower tariffs with importing countries can be an effective strategy but may not always be feasible. Alternatives such as finding suppliers in countries with lower tariff barriers or applying for government subsidies can also help reduce the financial burden of tariffs. Ultimately, each option has its own set of challenges and benefits, and what's most attractive will depend on the specific circumstances and strategic goals of the company.