Question

What is a “free zone” in terms of international trade?
answer in 5 descriptive sentences

Answer 1

A "free zone," also known as a free trade zone or export processing zone, is a designated area within a country where goods can be imported, stored, manufactured, and re-exported with minimal customs regulations and duties. These zones are established to encourage foreign investment and trade by providing businesses with favorable tax conditions and tariffs. Companies operating within free zones often benefit from exemption from certain local taxes, streamlined customs procedures, and reduced regulatory requirements, making it easier to conduct international business. Free zones can facilitate the movement of goods across borders, contributing to supply chain efficiency and global commerce. They are strategically located near ports or airports to optimize logistics and attract multinational corporations looking to expand their operations.