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CIPS L4M4 Exam - Topic 3 Question 13 Discussion

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

CIPS L4M4 Exam - 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.

Show Suggested Answer Hide 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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Demetra
9 months ago
I agree with Mike, importation rules can really complicate things.
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Mitzie
9 months ago
Payments by electronic bank transfer can be tricky too.
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Walker
10 months ago
Lower operating costs? Sounds too good to be true!
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Cristy
10 months ago
I think B is more relevant in this case.
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Kasandra
10 months ago
A is definitely a risk to consider.
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Burma
10 months ago
Payments by electronic bank transfer seem less risky, but I guess there could be issues with fraud or delays. I should probably review that topic again.
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Vernell
11 months ago
Lower operating costs sound appealing, but I feel like there could be hidden risks associated with that. I need to think more about what those might be.
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Cammy
11 months ago
I'm not entirely sure, but I think exportation rules might also be a concern. We covered similar questions in class, and they mentioned compliance issues.
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Carole
11 months ago
I remember discussing how importation rules and tariffs can really impact costs when offshoring. It seems like a significant risk to consider.
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Jennie
11 months ago
Lower operating costs are definitely a potential benefit of offshoring, but that's not a risk. I think the answer has to be either A or B - the rules and regulations around moving goods across borders.
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Shaunna
11 months ago
Hmm, I'm a bit unsure about this one. I know offshoring can involve some tricky regulations, but I'm not sure which specific risks are most relevant here. I'll have to think it through.
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Rebecka
11 months ago
This seems like a straightforward question about the risks of offshoring. I'll need to carefully consider the options and think about the key factors Steff should be aware of.
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Kattie
11 months ago
Okay, I've got this. The key risk Steff should consider is the importation and exportation rules and tariffs. That's a major factor when moving manufacturing overseas.
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Eden
11 months ago
Okay, let me see. I'm pretty confident it's not A or C, since those don't seem to match the description of the baseline normal. I'm leaning towards D, but I'll double-check my notes just to be sure.
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Carlene
11 months ago
This question seems straightforward, but I want to make sure I understand the key elements they're looking for in a complete service definition. I'll need to carefully review the details about what the BRMs are trying to achieve.
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Tora
11 months ago
I feel like connecting to ThreatGrid is important too, especially for sandboxing the files.
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Gertude
11 months ago
I think we discussed using commands to bind prefix-SIDs to interfaces, but I'm not sure if it's exactly the same here.
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Ashlee
11 months ago
I remember studying the throughput values, and I'm pretty certain that Cisco CSR can handle much higher encrypted throughput than Aviatrix.
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Nan
2 years 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
2 years 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
2 years ago
A) importation rules and tariffs and B) exportation rules and tariffs are crucial to think about.
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Glory
2 years ago
Definitely, it's important to consider all the potential costs involved.
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Paulina
2 years ago
I agree, those tariffs can really impact the bottom line.
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Kristeen
2 years ago
Yes, lower operating costs can be a potential advantage, but Steff should still carefully consider all risks involved.
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Viki
2 years ago
But lower operating costs could be a benefit of offshoring, right?
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Shayne
2 years ago
I agree with Chauncey, importation rules and tariffs can impact the cost of offshoring.
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Lavonda
2 years 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
2 years ago
B) exportation rules and tariffs
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Mariko
2 years ago
A) importation rules and tariffs
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Chauncey
2 years ago
I think Steff should consider importation rules and tariffs as a risk.
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Hollis
2 years 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
2 years ago
C) payments by electronic bank transfer
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Alpha
2 years ago
Definitely, those rules can be tricky to navigate.
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Dianne
2 years ago
B) exportation rules and tariffs
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Nelida
2 years ago
A) importation rules and tariffs
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