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

question 29

Multiple Choice

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.

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Definitions:

Shares

Shares represent portions of equity in a company or financial asset, entitling holders to a proportional share of profits through dividends, when declared.

Equity Transaction

Transactions that affect the ownership interest of shareholders in a company, including issues, buybacks, and sale of shares.

Incremental Costs

Costs directly associated with the production of additional units of goods or services.

Net Of Tax

The amount remaining after the effect of taxes has been accounted for.