Author Question: Because foreign trade zones have easy access, they are less secure causing an increased insurance ... (Read 224 times)

luvbio · **on:** Jun 29, 2018

Because foreign trade zones have easy access, they are less secure causing an increased insurance cost for companies using them.

Indicate whether the statement is true or false

Question 2

Transfer pricing is viewed as unethical by most international firms and is even illegal in some countries.

Indicate whether the statement is true or false

aham8f · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

F
Foreign trade zones are usually bonded and must be secured and enclosed, which make them safer that most ports of entry - thus decreasing insurance costs for companies using them.

Answer to Question 2

F
Transfer pricing is used by multinational companies to repatriate profits from operations in foreign countries. Transfer pricing is regarded as a legitimate business opportunity by transnational corporations.