Which of the following represents an advantage of setting up a manufacturing plant in a foreign trade zone? A company that has set up a manufacturing plant in a foreign trade zone is free from paying U.S. income taxes. Goods sold in a foreign trade zone are exempt from paying duty. Goods imported into a foreign trade zone are duty-free until they leave the zone for sale in the United States. A company that has set up a manufacturing plant in a foreign trade zone is free from paying duty on inventory included in finished products. Which of the following is true of economic risk? It is the degree to which a firm's financial statements are exposed to exchange rate fluctuation. It refers to the possibility that future cash transactions will be affected by changing exchange rates. It refers to the possibility that a firm's present value of future cash flows will be affected by exchange rate fluctuations. It is synonymous with translation risk