A free trade zone (FTZ) or Export processing zone (EPZ) is one or more areas of a country where tariffs and quotas are eliminated and bureaucratic requirements are lowered in hopes of attracting new business and foreign investments. Free trade zones can be defined as labor intensive manufacturing centers that involve the import of raw materials or components and the export of factory products. This article does not cite any references or sources. ... A quota is a prescribed number or share of something. ... material is the substance or matter from which something is or can be made, or also items needed for doing or creating something. ...

Most FTZs are located in developing countries. They are special zones where some normal trade barriers such as import or export tariffs do not apply, bureaucracy is typically minimized by outsourcing it to the FTZ operator and corporations setting up in the zone may be given tax breaks as an additional incentive. Usually, these zones are set up in underdeveloped parts of the host country, the rationale being that the zones will attract employers and thus reduce poverty and unemployment and stimulate the area's economy. These zones are often used by multinational corporations to set up factories to produce goods (such as clothing or shoes). A developing country is a country with low average income compared to the world average. ... A trade barrier is general term that describes any government policy or regulation that restricts international trade, the barriers can take many forms, including: Import duties Import licenses Export licenses Quotas Tariffs Subsidies Non-tariff barriers to trade Most trade barriers work on the same principle: the imposition of some... This article does not cite any references or sources. ... The Politics series Politics Portal This box:      This article is about the sociological concept. ... A tax exemption is an exemption to the tax law of a state or nation in which part of the taxes that would normally be collected from an individual or an organization are instead forgone. ... A multinational corporation (MNC) is a corporation or enterprise that manages production establishments or delivers services in at least two countries. ...

Free trade zones in Latin America date back to the early decades of the twentieth century. The first free trade regulations in this region were inacted in Argentina and Uruguay in the 1920s. However, the rapid development of free trade zones across the region dates from the late 1960s and the early 1970s. Latin America consists of the countries of South America and some of North America (including Central America and some the islands of the Caribbean) whose inhabitants mostly speak Romance languages, although Native American languages are also spoken. ...

In 2002 there were 43 million people working in about 3000 FTZs spanning 116 countries producing clothes, shoes, sneakers, electronics, and toys. The basic objectives of EPZs are to enhance foreign exchange earnings, develop export-oriented industries and to generate employment opportunities. Also see: 2002 (number). ... This article describes a type of political entity. ... (See also List of types of clothing) Introduction Humans often wear articles of clothing (also known as dress, garments or attire) on the body (for the alternative, see nudity). ... A shoe is an item of footwear worn on the foot or feet of a human, dog, cat, horse, or doll. ... Sneakers Sneakers are footwear of flexible material, typically featuring a sole made of rubber. ... A teddy bear A toy is an object used in play. ...

Criticism

The creation of special free trade zones is criticized for encouraging businesses to set up operations under the influence of often corrupt governments, and giving foreign corporations more economic liberty than is given indigenous employers who face large and sometimes insurmountable "regulatory" hurdles in developing nations. However, many countries are increasingly allowing local entrepreneurs to locate inside FTZs in order to access export-based incentives. Because the multinational corporation is able to choose between a wide range of underdeveloped or depressed nations in setting up overseas factories, and most of these countries do not have limited governments, bidding wars erupt between competing governments.

Often the government pays part of the initial cost of factory setup, loosens environmental protections and rules regarding negligence and the treatment of workers, and promises not to ask payment of taxes for the next few years. When the taxation-free years are over the corporation which set up the factory without fully assuming its costs is often able to set up operations elsewhere for less expense than the taxes to be paid, giving it leverage to take the host government to the bargaining table with more demands in order for it to continue operations in the country.

The widespread use of free trade zones by companies such as Nike has received criticism from numerous writers such as Naomi Klein in her book No Logo. Nike, Inc. ... Naomi Klein (born May 5, 1970 [1]) is a Canadian journalist, author and activist. ... No Logo: Taking Aim at the Brand Bullies is a book by Canadian journalist Naomi Klein. ...

Free Trade Zones

• Aras Free Zone
• The Miami Free Zone
• Colón Free Trade Zone
• Jamaican Free Zones
• Jebel Ali Free Zone
• Shannon Free Zone
• Bangladesh' Export Processing Zone
• Mauritius' Export Processing Zone
• Kish Island
• Saipan
• Calabar Free Trade Zone
• Qeshm Island
• Zona Franca de Manaus, Brazil
• Cavite Free Trade Zone, Philippines
• doraleh free zone, djibouti

Aras Free Trade - Industrial Zone is situated in north-west of Iran, adjacent to Autonomous Rep. ... The Colón Free Zone is a gigantic entity at the Atlantic gateway to the Panamá Canal, dedicated to re-export an enormous variety of merchandise to Latin America and the Caribbean is also the largest free zone in the Americas and second largest in the world. ... The Jamaican Free Zones are a government initiative to encourage foreign investment. ... Jebel Ali Free Zone (JAFZ) is located in the emirate of Dubai in the United Arab Emirates. ... Shannon Free Zone is a 2. ... Kish (Persian: کیش) is an Iranian island and city in the Persian Gulf, and is part of the Hormozgan province. ... Saipan seen from the air A map of Saipan, Tinian & Aquijan Saipan (IPA: in English) is the largest island and capital of the United States Commonwealth of the Northern Mariana Islands (CNMI), a chain of 15 tropical islands belonging to the Marianas archipelago in the western Pacific Ocean (15°10... Qeshm, the largest island of Iran, c. ...

See also

• List of international trade topics
• Sweatshop
• Third world
• Multinational corporation
• Trade
• Free Trade Area
• Free economic zone