EPZs Flashcards
Characteristics
Not an industrial phenomenon
Provides an incentives to attract mostly foreign businesses and investments for export production
However there are differences I which they operate
What is an EPZ
It is one or more special areas in ca country where trade barriers like tax tariffs are eliminate and bureaucratic requirements are lowered in hopes of attracting business and foreign investments
WB sees this as a country’s departure from a impost substitution to export oriented economies
Why the need to develop
Firstly is that they use EPZ if they do not wish to obtains comprehensive free trade policy as it might threaten their domestic markets
Able to operate at lower costs as they work with private entrepreneurs
Political aspect as well
Conclusion
Yes EPZ is a lances for economic stagnation in LDCs as they embark on industrialization
However countries like China do no wish to adopt this as they quite apprehensive as they do not want the EPZ to become a western imperialism in the socialist state of china
