Foreign Trade Zones Research Articles

How Foreign Trade Zones Can Reduce Costs

This article shows how using foreign trade zones as part of the distribution system can reduce the total product cost of imports into the United States and exports to foreign markets.

Toward a theory of foreign trade zones

Although the Foreign Trade Zones Act became law in 1934, only within the last decade have firms realized their potential, Foreign merchandise enters a zone immune to tariffs, quotas, and customs procedures, Merchandise may be processed into the U.S. or exported; in fact, most goods are imported. The manufacturing sector has rather quietly been taking advantage of “inverted” or “upside-down” tariffs. This article confines itself to a descriptive analysis leading to rudimentary theory.

Foreign Trade Zones: The Mid‐American Experience

Foreign trade zone (FTZ) usage in the United States has increased substantially in this decade. This paper discusses the major reasons for that increase, which include a favourable regulatory climate, growing awareness of the competitive benefits of operating within a zone, and community interest in promoting zones as an incentive to attract investment. Examined here are developments in the Mid‐American region, which reflect national trends. In Indiana, illinois, Ohio and Michigan there is considerable interest in general purpose zones, but so far business use has been limited. The major activity is occuring in subzones in individual manufacturing plants, and this is likely to continue in the region as well as nationally.

The Role of Foreign Trade Zones in Business Strategy

This article discusses the competitive advantage firms can derive from the wise utilization of foreign trade zones. Recent environmental changes which have necessitated an increasing use of FTZs are discussed, as well as the benefits offered by FTZs as compared to other government tariff incentive programs. Several examples demonstrate the various ways information is given regarding the money required and the time involved in the establishment and use of an FTZ or a subzone.

ECONOMIC DEVELOPMENT, EMPLOYMENT AND TRAINING POLICY AND FEDERALISM

There are widespread misperceptions about the way in which American federalism has worked in the past and is working now. One is the belief that since the 1930s, the federal government has engaged in many new activities. Another misperception is that liberals support centralization and conservatives, decentralization. Actually, most Americans tend to be pragmatic. The vitality of this American pragmatism is seen in state economic development policies. States have provided leadership in initiating new economic development programs in such areas as foreign trade and enterprise zones. Four major patterns in American federalism characterize the emergence and development of most of these programs: responsiveness, elitism, pluralism, and experimentation. Implications for employment and training policy are examined.

Firm Differences in Perceptions of the Facilitating Role of Foreign Trade Zones in Global Marketing and Logistics

Recent research has investigated the internationalization process of the firm. This study provides insight into the role that foreign trade zones play in that process. It investigates differences between users and non-users of foreign trade zones in terms of (1) firm characteristics, (2) the awareness of zone benefits, and (3) the importance of the benefits to the firms surveyed. Zone users were found to import significantly more than non-users and exported more as well. Users tended to be smaller in size (sales and number of employees) than non-users. Users were more aware of the benefits of foreign trade zones and, for the most part, rated the benefits as being more important in facilitating their global marketing and logistics functions.

UNDERSTANDING FOREIGN TRADE ZONES

This article reviews the emerging use of foreign trade zones in the United States and presents a competitive analysis framework to segment markets, determine levels of marketing effort, and develop differential marketing strategies for zone services. Using a two‐dimensional model of potential use and competitive position, the proposed framework permits foreign trade zone services and market segments to be analysed in a single model where differential marketing strategies can be readily identified. The case of a recently formed trade zone is used to illustrate the application of the proposed framework.

Foreign Trade Zones: A Resource for Materials Managers

Journal of Purchasing and Materials ManagementVolume 21, Issue 4 p. 21-27 Article Foreign Trade Zones: A Resource for Materials Managers Wade Ferguson, Wade FergusonSearch for more papers by this author Wade Ferguson, Wade FergusonSearch for more papers by this author First published: 01 December 1985 https://doi.org/10.1111/j.1745-493X.1985.tb00146.xAboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URLThe site is currently under maintenance and this functionality is not available right now. Please try later. Share a linkShare onFacebookTwitterLinkedInRedditWechat Volume21, Issue4Winter 1985Pages 21-27 RelatedInformation

Foreign-Trade Zones: Opportunity for Strategic Development in The Southwest

Foreign-Trade Zones: Opportunity for Strategic Development in The Southwest

Dow Pleads Its Foreign Trade Zone Case

Dow Pleads Its Foreign Trade Zone Case

SOME COMMENTS ON THE ANNUAL REPORT OF THE UNITED STATES FOREIGN‐TRADE ZONES BOARD

South African Journal of EconomicsVolume 30, Issue 1 p. 79-84 SOME COMMENTS ON THE ANNUAL REPORT OF THE UNITED STATES FOREIGN-TRADE ZONES BOARD R. W. K. PARSONS, *JohannesburgSearch for more papers by this author R. W. K. PARSONS, *JohannesburgSearch for more papers by this author First published: March 1962 https://doi.org/10.1111/j.1813-6982.1962.tb02415.x The views expressed in llus article are the author's and are not necessarily those of the organization with which he is associated. Read the full textAboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onEmailFacebookTwitterLinked InRedditWechat Volume30, Issue1March 1962Pages 79-84 RelatedInformation

Foreign-Trade Zones of the United States

IN THE world pattern of international trade routes the United States has long occupied a chiefly terminal position. Until recently we apparently have not had the desire to alter that status quo. Endowed with power and resource materials, possessing an unparalleled capacity to produce and to consume, unchallenged by effective competition from other parts of the hemisphere, this country has shown little interest in importing or re-exporting merchandise on a grand scale. The pivot of global trade, the primary entrepot to which materials gravitate, has remained on the shores of Northwestern Europe. It now appears, however, that the United States may be seeking to compete more actively in re-export trade: within the past i5 years six foreign-trade zones have been established on or near the coast. In concept, a foreign-trade zone' is a device designed to stimulate the import and re-export trade of a country that maintains protective tariffs. Inasmuch as the bulk of international trade is oceanic, foreign-trade zones are almost invariably in seaports, though a few may be found in favorably located railroad or airline centers. The zone is an areally segregated and patrolled district where certain foreign goods may be stored temporarily without payment of customs fees and without customns inspection. Regulations of some zones permit manipulation (grading, sorting, mixing with domestic products, etc.) and exhibition of the warehoused merchandise; limited manufacturing privileges may also be granted. If the goods are eventually brought into the country, the usual domestic duties must be paid and customs inspection administered; if they are reshipped to a foreign land, they are exempt from both. Although the device of the foreign-trade zone has been utilized for nearly eight centuries, few nations possess the economic and geographic requisites for its establishment. Paramount is a national policy of substantial tariffs, without which a zone obviously would have no reason to exist. Of slightly less significance is location. A customs-free district should occupy an advantageous position on a major international trade route, and/or in proximity to a group of economically active sovereign states. Within the

UNITED STATES IMPORT FINANCING METHODS*

THE ECONOMIC CO-OPERATION ADMINISTRATION, in connection with its efforts to promote the exports of the Marshall Plan countries to the United States and thereby lessen their need for dollar aid, engaged a consultant to prepare an analysis of the financing of these exports. The Department of Commerce co-operated in this study through interviews of personnel in its I7 field offices with importers, bankers, warehousemen, foreign-trade zone authorities, factors, and dealers in foreign exchange to ascertain the methods of import trade financing currently utilized and to sample opinion concerning the adequacy of these methods. The principal results of this survey may be summarized as follows: I. The United States as an international finance center.-Although the dollar is today the world's leading international standard of account and medium of exchatnge, the American foreign trade financing market lacks the breadth, depth, and flexibility of the London market of pre-World War II days. There is less variety in the institutions engaged, and the instruments employed, in foreign trade financing. The devices currently employed were held, by the large majority of those interviewed, to be adequate for the financing of routine, standardized transactions. The financing of the novel transaction-the import business requiring medium-term capital, foreign area development, and the extension of American enterprise abroad-was less adequately met. 2. Dominance of the commercial bank.-Most of our import financing transactions are handled by commercial banks. The services which these banks render in this connection were widely regarded as satisfactory and their charges, interest and other, as reasonable. Many of these banks have well-staffed foreign trade departments, equipped to render service and advice to foreign traders. Some of those interviewed expressed the opinion that banks could place greater emphasis