Free Trade Zones
Free Trade Zones which are commonly known as Export Processing Zones are designated geographical areas in which trade and commerce are carried out without the application of tariffs. In these selected places, tariffs and quotas are then abolished and some standard business and trade prerequisites are dropped off as to wield a pull on new trading business and foreign investments. Thus, the goods and commodities traded in these areas are merchandised and re-exported without restraints.
AsiaTown IT Park, a popular and preferred BPO hub in the Philippines
The free trade zones are mostly situated in developing countries. Almost certainly, the free trade areas are positioned in the underdeveloped regions of that particular country. The rationale behind this business set-up is to entice local and foreign trade investors to invest in these areas thus progressing the place’s economic stability and at the same time, minimise if not annihilate the problem of poverty and unemployment of the region.
Dubai, UAE | Dubai Creek
According to statistics, there are forty-three million people working in three thousand free trade zones straddling one hundred sixteen countries across the globe. These trades include the production of shoes, clothes, toys and electronics, starting the year 2002. The primary goals of establishing such free trade areas are to augment foreign exchange gross, initiate job prospects and eventually expand export-oriented industries.
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