Globalization of foreign trade zones: the case of the united states

Abstract

Global business success is often measured based on the ability of multinational corporations to exports and a country's ability to secure a zone for storage, exhibition, repackaging, manufacturing, and distribution. The U.S. government promoted global business zones via enacting an amendment to the Trade Act in the early twentieth century. The focus of attention was then turned to the economic and social impact of zones and the regulatory status of U.S. trade under tariffs, quotas, and trade barriers. This study emphasizes the quantitative decision-making models to assess the use of U.S. foreign trade zones in a global business perspective. It also evaluates the potential savings of zone usage for reexport, and the drawbacks of import bonds in connection with tariff and nontariff trade barriers.