Question

Identify a Free Trade Zone (FTZ), Special Economic Zone (SEZ), or such in France and make a sales pitch for it (like you are trying to attract a firm to come there!). Include web links to your resource information.  

What are the primary benefits it offers to an international company?

Answer 1

A free trade zone also called as foreign trade-trade zone is an area where goods may be landed, handle, manufactured or reconfigured and reexported without the intervention of the custom authorities.Only when the goods are moved to the consumers where the zones are located, they need to abide by the prevailing customs duty. Free trade zones are generally located in areas which are geographically advantageous for trade. For example around major seaports, international airports, and national frontiers.

A special economic zone is a area in which the business and trade laws are different from the rest of the country. The objective behind the SEZ is to enhance foreign investment, increase exports, create jobs and promote regional development.

We sales pitch would be to convince the companies to come and work in special economic zone as it can produce and trade goods at a lower price and less restrictions and also globally competitive.

Benefits to an international company

1.Reduce Taxes/ Tax exemptions

2. Relief from inverted tariffs

3.Duty exemption on re-exports

4 .Indefinite Storage

5. Minimum bureaucratic regulations.

6. Encourage exports

7.Exemptions of custom duty