$5.$ Maquiladoras:

A$)$ are Mexican factories frequently located along the U$.$S$.-$Mexico border.

B$)$ are subject to increased duties and tariffs under NAFTA.

C$)$ is the name of the free trade agreement between the USA, Canada, and Mexico.

D$)$ is the name of special manufacturing units located in Spain.

E$)$ is an operational hedging strategy for building extra production capacity. $(1$ Point$).$

$6.$ Cost reduction in international operations can take place because of:

A$)$ lower taxes and tariffs.

B$)$ lower wage scales.

C$)$ lower indirect costs.

D$)$ less stringent regulations.

E$)$ all of the above. $(1$ Point$).$