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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.

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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
9 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
8 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
8 months ago
A) importation rules and tariffs and B) exportation rules and tariffs are crucial to think about.
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Glory
8 months ago
Definitely, it's important to consider all the potential costs involved.
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Paulina
9 months ago
I agree, those tariffs can really impact the bottom line.
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Kristeen
9 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
9 months ago
But lower operating costs could be a benefit of offshoring, right?
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Shayne
10 months ago
I agree with Chauncey, importation rules and tariffs can impact the cost of offshoring.
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Lavonda
10 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
9 months ago
B) exportation rules and tariffs
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Mariko
9 months ago
A) importation rules and tariffs
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Chauncey
10 months ago
I think Steff should consider importation rules and tariffs as a risk.
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Hollis
10 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
9 months ago
C) payments by electronic bank transfer
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Alpha
9 months ago
Definitely, those rules can be tricky to navigate.
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Dianne
9 months ago
B) exportation rules and tariffs
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Nelida
9 months ago
A) importation rules and tariffs
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