Discussion Forum Module 3: Foreign Trade Zones (FTZ)
BUSI 604- B05 International Business
September 6, 2013
Jennifer L. Glasscock
Liberty University Online
Key Term Definition and Interest in Key Term
Greetings, everyone! This week I selected a term that I hope will help me not only learn more about global commerce, but will tie into my cultural research paper on India, as well. Therefore, I chose the term, “Foreign Trade Zone” or FTZ. Foreign trade zones are created when X country designates an area as a “customs point of entry” where commercial merchandise would receive the same treatment as if it were outside the commerce of X country. It is free of certain duties and taxes (Satterlee, 2009). I am interested in this term because my BRAC country of India depends on exports to finance a portion of their economy. Not only do foreign trade zones help resources make their way around the world, but they are good for relations among the nations. “The FTZ program provides a number of cost-saving benefits to zone users…Over the last half-century, many of the world's nations have participated in a series of multilateral trade negotiations. The success of these negotiations has lowered tariffs and other trade barriers since the dark days of the early 1930s” (Jones, 1994). Main Article Summary and Relation to Key Term
The article I selected to write about was a scholarly journal article called, “Challenges of International Business before SAARC Nations: Some Reflections” from the International Journal of Global Business, December 2011. The article greatly helped me understand FTZs and how they can benefit Asian nations to include India. I learned about the SAARC: South Asian Association for Regional Co-Operation that was founded in December 1985 made up of India, Bangladesh, Bhutan, Pakistan, Maldives, Nepal and Sri Lanka (Gabriel, 2011). SAARC is planning establishment of a South Asian Foreign Trade Area (SAFTA). However, the agreement to establish this...
References: Ford, N. (2013). Putting the trade in free trade zones. The Middle East, 443, 33. Retrieved from http://p2048-www.liberty.edu.ezproxy.liberty.edu:2048/login?url=http://search.proquest.com.ezproxy.liberty.edu:2048/docview/1355007024?accountid=12085
Fultz, J. (2007). India FTZ causes unrest, inequality. Industrial Worker, 104 (10), 11. Retrieved from http://p2048-www.liberty.edu.ezproxy.liberty.edu:2048/login?url=http://search.proquest.com.ezproxy.liberty.edu:2048/docview/195441781?accountid=12085
Gabriel, S.J. (2011). Challenges of international business before SAARC nations: Some reflections. International Journal of Global Business, 4 (2), 41-59. Retrieved from http://web.ebscohost.com.ezproxy.liberty.edu:2048/bsi/pdfviewer/pdfviewer?sid=6a113fb0-3dd0-4c5c-a0c5-263e36161fc2%40sessionmgr110&vid=4&hid=128
Jones, G. (1994). Foreign trade zones: Tariff relief…and more. Global Trade & Transportation, 114 (9), 26. Retrieved from http://p2048-www.liberty.edu.ezproxy.liberty.edu:2048/login?url=http://search.proquest.com.ezproxy.liberty.edu:2048/docview/211035840?accountid=12085
Satterlee, B. (2009). Cross border commerce. Roanoke, VA: Synergistics Publishing.
Trunick, P. (2008). Get in the zone. Logistics Today, 49 (2), 24-25. Retrieved from http://p2048-www.liberty.edu.ezproxy.liberty.edu:2048/login?url=http://search.proquest.com.ezproxy.liberty.edu:2048/docview/234183374?accountid=12085
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