Pronunciation: [ˌɛftˌiːzˈɛd] (IPA) 
The spelling of "FTZ" can be a bit confusing. In the International Phonetic Alphabet (IPA), it is spelled /ɛf ti zi/, representing the individual letters "F", "T", and "Z". However, in some contexts, "FTZ" may be pronounced as a single syllable, sounding like the word "futz". This pronunciation is represented in IPA as /fʌts/. The context and specific pronunciation used will depend on the speaker and the intended meaning of the word.
FTZ, abbreviation for Free Trade Zone, refers to a designated area within a country where goods can be imported, processed, manufactured, and reexported without being subjected to the usual customs duties and regulations. It is a geographically delimited zone often located near ports or international airports, established with the intention of promoting trade and attracting foreign direct investment.
FTZs are typically created to enhance global commerce by facilitating international trade. They are governed by specific regulations and policies that differ from the rest of the country in which they are situated. Goods that enter an FTZ are considered to still be in foreign territory, allowing for deferred customs duties and taxes until they are moved into the domestic market. This special zone acts as a bridge between domestic and international markets, enabling businesses to take advantage of various trade benefits, including streamlined customs procedures, exemption from certain taxes and tariffs, and simplified bureaucratic processes.
FTZs offer numerous advantages to both domestic and foreign businesses. For domestic companies, they foster economic growth, boost employment rates, and stimulate technological advancements. Foreign businesses benefit from the ease of conducting international trade, increased market access, reduced operational costs, and improved supply chain efficiency. Overall, Free Trade Zones function as catalysts for economic development, attracting foreign investment, and promoting global trade by removing barriers and encouraging cross-border commerce.
