Globalization

What argon Free Trade zones/Economic Processing Zones? A free quite a little zone (FTZ)Clothing Export Promotion Zone or Export processing zone (EPZ) is one or more areas of a country where tariffs and quotas are eliminated and bureaucratic requirements are lowered in order to attract companies by airlift the incentives for doing business there. Free trade zones can be delineate as labor intensive manufacturing centers that involve the import of desolate materials or components and the export of factory products. Most FTZs are trim(p) in developing countries. They are special zones where (some) normal trade barriers such as import or export tariffs do not apply, bureaucracy is typically minimized by outsourcing it to the FTZ floozy and corporations setting up in the zone may be given tax breaks as an additional incentive. Usually, these zones are set up in underdeveloped parts of the host country, the rule being that the zones will attract employers and thus reduce impoverishment and unemployment and stimulate the areas economy. These zones are often used by multinational corporations to set up factories to produce goods (such as vesture or shoes). In 2002 there were 43 million passel working in about 3000 FTZs spanning 116 countries producing clothes, shoes, sneakers, electronics, and toys.

The basic objectives of EPZs are to elicit foreign exchange earnings, develop export-oriented industries and to generate employment opportunities The conception that EPZs could help Third World economies first gained currency in 1964 when the United Nations Economic and Social Council adopted a reply endorsing the zones as a means of promoting trade with developing nations. The creative thinker didn¡¦t really dismount off the ground, however, until the early eighties, when India introduced a five-year tax break for companies manufacturing in its low-wage zones. Since then, the free-trade-zone industry has exploded. The theory roll in the hay EPZs is that they will attract foreign investors, who, if all goes well,... If you want to get a full essay, order it on our website: Orderessay

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