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A company that wants to import components without any tariffs and then assemble them locally to...

A company that wants to import components without any tariffs and then assemble them locally to produce a finished product that will then be exported. The company should consider a location that is a(n) 


  •  Duty-free territory 

  •  Foreign trade zone 

  •  International processing center

business   Operations-Management   
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Answer #1

Duty-Free territory

This would refer to a region in which there are no import tariffs or duty or taxes that needs to be paid to the government. This reduces trade barriers and help in fostering trade and commerce accordingly for the same.

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Answer #2

ANSWER :


Duty free territory.


[ In duty free territory import duty is not applicable. Hence, import cost will be less which will result in the profits of the company to rise by the same amount by which import duty is saved ]


answered by: Tulsiram Garg
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