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AA Global Populations II > FTZ > Flashcards

Flashcards in FTZ Deck (6)
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1

FTZ

Designated area within a country where foreign companies (often TNCs) can import (raw) materials, manufacture goods, export products
without limitations imposed by usual rules and taxes

2

National FTZ

Reduction of customs requirements, environmental protection & other bureaucracy.

3

International FTZs:

- The elimination of trade barriers
- Promoted by International institutions (e.g. World Bank)
- Heavily promoted by US foreign policy in relations with South Americas and parts of Asia.

4

Maquiladoras

- equipment and resources enter Mexico duty-free
- exported at lower tariffs
- Attract foreign investment

5

Benefits

jobs mexico
competitive, greater savings and profits USA

6

Disadvantages

-working conditions
-low wages
- exploitation
- pollution