Drew's company imports materials and parts into a free trade zone (FTZ) within the United States and then has the finished products imported into the United States. Her company will most likely:
A. not have to pay tariffs on the products while they are in the FTZ
B. incur higher labor costs than other domestic companies
C. have to pay tariffs based on the value of both the parts and the materials
D. not be able to store finished goods in the FTZ
E. have to pay tariffs based on the value of the raw materials when they leave the country
Ans: A. not have to pay tariffs on the products while they are in the FTZ
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