The most attractive way to reduce or eliminate the impact of paying tariffs on pairs imported to a company's distribution warehouse in Latin America is to lower the S/Q rating on all pairs sold in Latin America--no tariffs have to be paid on branded footwear having an S/Q rating of 3-stars or below. raise the company's selling price of footwear in Latin America by the full amount of the tariff and pass all tariff costs along to the Latin American purchasers of the company's footwear- - this strategy has the advantage of completely eliminating the company's exposure to import tariffs in Latin America. build a production facility in Latin America and then expand its capacity as may be needed so that the production facility has the capability to supply all (or at least most) of the branded and private-label pairs the company intends to try to sell in Latin America. lower the company's selling prices of pairs sold in Latin America to levels low enough to escape having to pay the import tariff. pursue a strategy of selling fewer pairs in Latin America than rival companies, which will them keep the company's costs for import tariffs lower than those of rivals and give the company a low tariff-cost advantage on its sales in Latin America