At the macro-level, benefits of using a free trade zone include all of the following except:
A)increased investment and employment.
B)more revenue through increased local taxes.
C)obtaining a beachhead in a foreign market without being in the mainstream distribution process.
D)the ability to reassemble large shipments into different groupings.
E)no duties on labor.

Question

Quizplus · Accepted Answer

Free trade zones typically offer tax incentives, including reduced or eliminated local taxes, to attract businesses. Therefore, they do not necessarily result in more revenue through increased local taxes, as the incentives are designed to reduce tax burdens to encourage investment and trade within the zone.

At the Macro-Level, Benefits of Using a Free Trade Zone