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English definition of “flag of convenience”

flag of convenience

noun [C]     (plural flags of convenience)
COMMERCE, TRANSPORT the flag of a country that will register a ship (= list it as a ship of that country ) that is owned by someone from another country : Even some landlocked countries offer flags of convenience in order to gain income . An increasing part of the world's merchant fleet is operating under a flag of convenience , chiefly for financial reasons involving lower taxes and less stringent regulations .
(Definition of flag of convenience noun from the Cambridge Business English Dictionary © Cambridge University Press)
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