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explain how a U.S. exporter could lower distribution costs using FTZs (foreign trade zones)

explain how a U.S. exporter could lower distribution costs using FTZs (foreign trade zones)

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Answer: A special economic Zone (SEZ) offer a number of benefits that can be utilized effectively by the exporters from U.S. The SEZ’s offer tax benefits to the companies that can enable the U.S exporters to reduce the costs of distribution of their products. These SEZ’s have number of relaxations in terms of taxes and these can help in reducing the costs of the companies if they chose to distribute their products from these SEZ’s. Apart from this the SEZ also offers a number of infrastructural supports that can help in reducing the costs of distribution for the exporting firms.   

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