Toward a Theory of Foreign Trade Zones

Document Type

Article

Publication Date

1-1-1988

Description

Although the Foreign Trade Zones Act became law in 1934, only within the last decade have firms realized their potential. Foreign merchandise enters a zone immune to tariffs, quotas, and customs procedures. Merchandise may be processed into the U.S. or exported; in fact, most goods are imported. The manufacturing sector has rather quietly been taking advantage of “inverted” or “upside-down” tariffs. This article confines itself to a descriptive analysis leading to rudimentary theory.

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