The Costs of Production May Be Lowered If a Firm

The costs of production may be lowered if a firm ships unassembled goods to a free trade zone (FTZ) in an importing country because

A) wages and other overheads may be higher in an FTZ.
B) locally produced components do not qualify for tariffs.
C) unassembled goods may qualify for lower freight rates.
D) the finished goods cannot be exported to other countries.
E) goods imported in an FTZ qualify for the same level of tariffs as other imported goods.