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Hidden powerhouses: How global hybrid investment zones are driving U.S. prosperity
- July 1, 2025: Vol. 18, Number 7

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Hidden powerhouses: How global hybrid investment zones are driving U.S. prosperity

by Sheila R. Foster, Michael Likosky and Xinrui Shi

The production processes of the national and global economy increasingly take place within a deeply interconnected network of legally delineated zones. Today, a sizable number of America’s leading internationalized businesses such as Tesla and BMW operate across more than 1,300 of these transnational zones. Established as U.S. Foreign Trade Zones (FTZs), they exist in every state in the country. They bestow special economic privileges, the easing of trade and other regulations, advanced infrastructure, and attractive incentives for the companies that operate within them.

FTZs are unique among global free zones in their dual focus on export and import activities; less visible is their increasing role in the retention and attraction of domestic manufacturing activities. They are one of the most important sites for advanced and precision manufacturing across a range of industries, including electronics, automotive, defense and pharmaceutical.

These zones raise complex q

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