Special economic zone The term special economic zone (SEZ) is commonly used as a generic term to refer to any modern economic zone. Broadly, SEZs are located within a countrys national borders but have different business laws. The aims of the zones include: increased trade, increased investment, job creation and effective administration. To encourage businesses to set up in the zone liberal policies are introduced. There policies typically regard investing, taxation, trading, quotas, customs and labour regulations. Additionally, companies may be offered tax holidays. The creation of special economic zones by the host country may be motivated by the desire to attract foreign direct investment. The benefits a company gains by being in a Special Economic Zone may mean it can produce and trade goods at a globally competitive price.The operating definition of an economic zone is determined individually by each country. In some countries the zones have been criticized for being little more than Chinese labor camps, where labor rights are denied for workers.
Posted on: Sun, 13 Jul 2014 09:56:35 +0000
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