most popular ones is to set up a special area demarked for the purpose of industrial growth.Various facilities can be offered in this area without the fear of them being misused and also, noresistance from WTO (or any other trading partner / nation) is encountered on account of thescheme not being a national policy, but only limited to a small area demarked for the purpose.This is where the concept of ‘Economic Zones’ comes in.
Types of Economic Zones
Depending on the facilities provided, the level of government control exercised, the type of industries allowed in the zone, and the type of activities allowed in the zone, they are classifiedinto many types by different countries. A few common types are as follows:
Foreign Trade Zone (FTZ) – These are designated sites where special customs proceduresare applicable. These procedures allow domestic activities involving foreign trade to take place as if it were outside the nation’s borders, thus relieving them of the Customs of theland.
Miami Foreign Trade Zone, Florida (USA)