A Foreign Trade Zone

question 31

Multiple Choice

A foreign trade zone

• A)always increases the prices for goods sold in the importing country.
• B)raises the insurance expense for a company.
• C)may promote a favorable country-of-origin effect.
• D)typically creates entry barriers for foreign firms.

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Definitions:

Federalism

A political system that combines a general government (the federal or national government) with regional governments (states or provinces) in a single political system.

Shared Powers

Constitutional powers that are shared by both the state and federal government, allowing for a balance between centralized and local authority.

Federal Judges

Judges appointed by the president and confirmed by the Senate to serve in the federal court system, including the Supreme Court, Courts of Appeals, and District Courts.

Popular Pressure

Influence exerted by public opinion on elected officials or decision-makers to take a specific action or adopt certain policies.