For the United States, a foreign trade zone (FTZ) is
A) a site within the United States.
B) a site outside the United States.
C) always located in poorer developing countries.
D) is used to discourage trade.

Question

Quizplus · Accepted Answer

A foreign trade zone (FTZ) is a site within the United States where foreign goods can be stored, assembled, and manufactured without being subject to U.S. customs duties and taxes until they are imported into the United States. In this case, if the U.S. components worth $10,000 are used in the vehicles assembled in South Korea, the vehicles could be brought into FTZ and have the tariff and taxes deferred until they are brought into the U.S. market.

For the United States, a Foreign Trade Zone (FTZ) Is