Firms use foreign trade zones to ________.
A) consolidate market monopolies
B) assemble foreign dutiable materials and components into finished products, which are then re-exported
C) create employment opportunities for the local people
D) meet quota demands established by the government

Question

Quizplus · Accepted Answer

Foreign trade zones allow firms to import materials and components, assemble or process them, and then export the finished products without being subject to the usual customs duties. This can be particularly advantageous for companies looking to reduce costs on the import of dutiable materials for manufacturing.

Firms Use Foreign Trade Zones to ________