What is a special economic zone?
Special economic zone (sez) is an area in a nation that has released financial and economic laws. Laws are amended to attract foreign investors who could be interested in doing business in the area where they receive favorable treatment. One example of a special economic zone is the free trade zone, although there are many other types of special economic zones. Some of the most famous are located in China, where the government has been creating such an area since the age of 80. Such zones are often developed in cooperation with the main foreign investors, such as corporations that would like to insert factories in the zone. Within the zone, the taxes are reduced and can be completely reduced, businesses apply lower tariffs and other financial regulations are released. A special economicic zone may also have reduced environmental regulations.
The idea of a special economic zone is that it stimulates rapid economic growth. By attracting foreign investors, nations can use wealth from other countries to improve their economiesand living conditions. Such zones can develop very quickly and attract workers from all over the area and can also provide opportunities for progress for people working in driving. Local entrepreneurs can also use conditions in special economic zones.
Numerous nations have experienced an economic boom due to special economic zones. People who decide to work in zones can be able to earn salaries higher than in other areas of the country and can send money home to the family to improve living conditions outside the zone. The effort to attract foreign investments can be highly effective and provides hosts for their increased international position with more economic and political power.
The creation of such zones was criticized from a number of different perspectives. There are some concerns that the production of ras can potentially squeeze indigenous populations that may not be fairly compensated fromTrack soil, and therefore special economic zones could create refugees. Relaxation of health and safety laws and employment has also been criticized because it may endanger the environment and the human population. When companies concentrates pollutants and industries in zones with relaxed environmental standards, it is difficult for nations to impose and enforce laws that are designed to protect the environment.