CSCP Certified Supply Chain Professional (#67)

A company that sells direct to industrial and commercial businesses has become successful by being responsive to the needs of its customers. The company currently produces in each country all of the products it sells in that country. Several countries in which the company operates have negotiated an agreement to establish a trading bloc. Which of the following actions by the company would be most appropriate if the agreement is implemented?

Consolidate production outside the trading bloc to reduce total costs.
Consolidate production within the trading bloc to reduce tariffs paid.
Outsource the production of products with low sales volumes to reallocate capacity.
Reassign products so that each is produced in a single facility within the trading bloc to get economies of scale.