L4M4 Exam Dumps | Steff is a procurement manager at Giant Buttons Ltd who are considering offshoring a small section of

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CIPS.L4M4.v2025-11-05.q105
Question 18

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Question 18/105

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.

A. importation rules and tariffs

B. exportation rules and tariffs

C. payments by electronic bank transfer

D. lower operating costs

Correct 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.

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