Question

Foreign-trade zones are: a. Bodies of water where cargo ships are allowed to dock to deliver imported goods b. Secure sites within the U.S. where goods and materials can be assembled and exported without being levied domestic duties or excise taxes c. Markets in the U.S. where foreign countries set up and sell products d. Secure sites in foreign countries where goods wait for clearance by importing country

Answer 1

Answer:

b. Secure sites within the U.S. where goods and materials can be assembled and exported without being levied domestic duties or excise taxes.

Explanation:

Foreign trade zone is a geographical area within the U.S where goods and materials can be assembled and exported without being levied domestic duties or excise taxes.

Foreign trade zone enables American businesses to be competitive against other economy. The burden of tariff has been lifted which reduces the price of the product. With their lower prices, they can compete more in the global economy.

Foreign trade zone is a zone free from tariffs and taxes. The zone is established in order to lower the costs of U.S. based products in international trade.

It helps relieve tariff burden of foreign inputs imported and the finished product exported.

When import tariff are lifted off imported inputs, finished goods have lower cost of production. Producers can also lower prices as a result of this.

Foreign trade zone is used to encourage trade in the international market.

Answer 2

Answer:

b

Explanation:

A Foreign-Trade Zone is a secure site within the United States where commercial goods both domestic and foreign, receives the same treatment by US Customs as though it was not within the commerce of the United States.

Foreign Trade Zones is used by some firms to put off the payment of duties and taxes.

Foreign and domestic goods are said to be in international commerce and not within the US Customs territory.