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CIPS Exam L4M4 Topic 3 Question 13 Discussion

Actual exam question for CIPS's L4M4 exam

Question #: 13
Topic #: 3

[All L4M4 Questions]

Steff is a procurement manager at Giant Buttons Ltd who are considering offshoring a small section of their manufacturing operations. Which of the following is a risk of offshoring that Steff should consider.

Aimportation rules and tariffs

Bexportation rules and tariffs

Cpayments by electronic bank transfer

Dlower operating costs

Show Suggested Answer

Suggested Answer: A

The correct answer is importation rules and tariffs. This is because in offshoring some of the manufacturing will be done in another country then shipped back to the UK. The products will have to go through customs so may be subject to tariffs and duties.

Steff's not exporting anything in the scenario and paying electronically and getting lower costs are not RISKS.

by Lottie at Jun 20, 2024, 07:24 AM

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Nan

5 months ago

I'm going with A and B. Those tariffs can really add up and bite you in the you-know-what. Better to be safe than sorry, am I right?

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Shawn

4 months ago

Lower operating costs may be tempting, but the hidden fees could end up costing more in the long run.

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Moon

4 months ago

A) importation rules and tariffs and B) exportation rules and tariffs are crucial to think about.

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Glory

4 months ago

Definitely, it's important to consider all the potential costs involved.

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Paulina

5 months ago

I agree, those tariffs can really impact the bottom line.

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Kristeen

5 months ago

Yes, lower operating costs can be a potential advantage, but Steff should still carefully consider all risks involved.

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Viki

5 months ago

But lower operating costs could be a benefit of offshoring, right?

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Shayne

6 months ago

I agree with Chauncey, importation rules and tariffs can impact the cost of offshoring.

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Lavonda

6 months ago

Lower operating costs? Hmm, I don't know about that. Sounds too good to be true. Steff better do their homework on the hidden costs of offshoring.

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Justine

5 months ago

B) exportation rules and tariffs

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Mariko

5 months ago

A) importation rules and tariffs

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Chauncey

6 months ago

I think Steff should consider importation rules and tariffs as a risk.

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Hollis

6 months ago

A and B definitely. Gotta watch out for those pesky import and export rules, am I right? Don't want to get caught with my pants down, so to speak.

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Joesph

5 months ago

C) payments by electronic bank transfer

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Alpha

5 months ago

Definitely, those rules can be tricky to navigate.

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Dianne

5 months ago

B) exportation rules and tariffs

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Nelida

5 months ago

A) importation rules and tariffs

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