Fill in the blanks.

International law requires that every merchant ship be registered with a country, which is known as its flag state. Panama has the largest number of ships being registered in the world. Many shipowners and shipping companies across the world choose Panama to register their ships to avoid strict marine regulations, high labor cost as well as income taxes that would otherwise be imposed in their home countries. For those shipowners and shipping companies:

1.) Panama is a _____ _____ country of registration.

2.) Whereas, they have _____ _____ jurisdictions of operations.