key term - Special Economic Zones (SEZs)

Definition

Special Economic Zones (SEZs) are designated geographical regions within a country that have special economic regulations and incentives aimed at attracting foreign investment, promoting exports, and boosting economic growth.

Related terms

Free Trade Zones (FTZs): Free Trade Zones are specific geographic areas where goods can be imported, stored, processed, manufactured, or re-exported without being subject to customs duties.

Export Processing Zones (EPZs): Export Processing Zones are industrial parks or zones set up by governments specifically for exporting goods. They often offer tax incentives and streamlined procedures for businesses.

Maquiladoras:

Maquiladoras are manufacturing plants located near the United States-Mexico border where raw materials are imported duty-free for assembly or processing before being re-exported.