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:

Global Commodity Chain

A global system of manufacturing and distribution channels that a product navigates before being acquired by the end user.

Marketer

A person or company responsible for promoting and selling products or services.

Globalization

Occurs as people become increasingly aware of, and dependent on, one another.

Wind

Air in motion relative to the surface of the Earth, ranging from gentle breezes to powerful gusts and storms, caused by the uneven heating of the Earth's surface.