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When using a free trade zone (FTZ) or free port for exporting, ______________.

1 Answer

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Final answer:

Using a free trade zone for exporting allows businesses to enjoy benefits such as no trade tax, promoting international trade and economic growth, as seen in the Mauritius SEZ model.

Step-by-step explanation:

When using a free trade zone (FTZ) or free port for exporting, businesses can take advantage of the special economic zone (SEZ) benefits where the government does not tax trade. This tax-exempt status can significantly reduce costs for companies, thereby encouraging international trade and potentially contributing to economic growth. For example, the island of Mauritius, implementing government-supported SEZs, has enjoyed above-average economic growth since the 1980s, showcasing the potential impact of such zones on a nation's economy.

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User Antony Ng
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