A - Special Economic Zones X ( What do gov/nations/economies benefit from…
A - Special Economic Zones X
What do gov/nations/economies benefit from them?
Chance of more competition which can help eco growth
More competition due to lower prices on trade goods + produce.
Diff regulations apply, making it easier for the 'host' country to benefit
Taxation, quotas, tariffs may differ in this area compared to the rest of the country. These changes in regulation are essentially just to be able to make more profit.
Shenzhen: pockets of capitalism in communism, to open up China to the rest of the world via the economy + trade in the1980s.
Was 1 of first, now there are over 4000 ww
It was a way for China to experiment with changes on a smaller scale first instead of having to change on a national scale. The result was positive because they attracted foreign investors, thus the SEZs' policies were used in other regions in China.
Trouble with labor rights and following regulations bc it's special. Practically labor camps.
Often SEZs are created with the illusion that economic growth will solve a country' issues, but that is not always what happens.
Some SEZs fail because they bring nothing to a country and can actually cost more than they profit in the end.
SEZs are also used for money laundering as regulations are more liberal and such activity can slip through the cracks.
What are SEZs?
Areas in a country in which unique economic regulations apply.
In order to attract FDI and to facilitate rapid economic growth without subjecting an entire nation to entirely new regulations which would be had to come back from in case that is needed.
A way for which states can take part in the globalization process.