Business – 6.1 External influences – International | e-Consult
6.1 External influences – International (1 questions)
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Risks
- Loss of preferential tariff treatment if the business’s supply chain no longer meets the new criteria, leading to higher export costs.
- Need to restructure sourcing – shifting to local suppliers may increase production costs or disrupt established quality standards.
- Administrative burden – additional documentation and compliance checks can strain limited resources.
Opportunities
- Eligibility for new incentives or subsidies aimed at firms that adapt to the revised rules.
- Potential to diversify markets within the bloc, as the renegotiation may open up previously restricted sectors.
- Strategic advantage for firms that quickly align their supply chains, gaining a competitive edge over slower rivals.
In summary, while renegotiated rules of origin pose compliance challenges, proactive adaptation can turn the changes into a catalyst for growth and market expansion.