Trend of special economic zones in modern world

Trend of special economic zones in modern world: Special economic zone (SEZ) is commonly trend of modern economic zone in the world. Rules and policies for businesses and services differs from the rest of the country in this type economic zone in modern world.

Special economic zones are concentrated within a country's territory. Main goals of the economic zones are to increase trade and investment, to create employment opportunities and to ensure effective administration. Encouraging businesses to set up in the industrial units, liberalizing financial policies are generally considered. Policies are taken regarding investment, taxation, trading, quotas, customs and labor regulations. Eventually, enterprises enjoy tax holidays.

In modern world, inception of special economic zones by a particular country are basically desired to attract foreign direct investment (FDI). Investors are motivated by providing them industrial plots, financial and non-financial incentives and utility services to produce specialized products. Finished products are mostly exported in abroad.

The advantages the enterprises gets investing in a Special Economic Zones (SEZs) they are able to produce and trade products at a globally competitive price rate.

The policy for Special Economic Zone (SEZ) guides the following necessity:

a) Generation of additional economic activity.
b) Promotion of exports of goods and services.
c) Creation of employment opportunities.
d) Development of infrastructure facilities.
e) Promotion of investment from domestic and foreign sources.

The operating philosophy of an economic zone is defined by the particular country in this modern world. In many developing countries the economic zones are criticized to be the labor camps of developed countries like United States, United Kingdom, Canada, Netherlands, Germany, Italy, Brazil, China, Japan, and also India. In this context, labor rights are little bit ignored for workers. Developing countries like Bangladesh, Cambodia, Vietnam, Laos, Indonesia, Hongkong, Taiwan, Pakistan, Nigeria, South Africa ets. are trended to establish special economic zones in a greater volume.

Special industrial unit, government to government (G2G), government to business (G2B), government to consumer (G2C), consumer to consumer (C2C), business to business (B2B) etc. are common patterns of special economic zones in modern world.