What do we call an area where business and trade laws differ from the rest of the country?

What do we call an area where business and trade laws differ from the rest of the country?

• A. Free trade area
• B. Special economic zone
• C. Designated trade region
• D. Enterprise zone

Answer: (B)

A special economic zone (SEZ) is a designated area in which business and trade laws differ significantly from the rest of the country. The purpose of these zones is to attract foreign direct investment and boost economic activity through various incentives such as tax breaks, regulatory exemptions, and infrastructure improvements. Countries often establish SEZs to stimulate economic growth, create jobs, and promote technology transfer. In contrast, a free trade area primarily focuses on eliminating tariffs and trade barriers among member countries to enhance trade. While it allows for easier trade, it does not specifically involve varied business and trade laws within a certain geographical area of a single country. Similarly, a designated trade region may not imply the significant legal differences that characterize a special economic zone. An enterprise zone, on the other hand, often emphasizes economic development in specific areas, typically with benefits for business investment but may not encompass the broader range of exemptions and distinct laws that SEZs provide.

A special economic zone (SEZ) is a designated area in which business and trade laws differ significantly from the rest of the country. The purpose of these zones is to attract foreign direct investment and boost economic activity through various incentives such as tax breaks, regulatory exemptions, and infrastructure improvements. Countries often establish SEZs to stimulate economic growth, create jobs, and promote technology transfer.

In contrast, a free trade area primarily focuses on eliminating tariffs and trade barriers among member countries to enhance trade. While it allows for easier trade, it does not specifically involve varied business and trade laws within a certain geographical area of a single country. Similarly, a designated trade region may not imply the significant legal differences that characterize a special economic zone. An enterprise zone, on the other hand, often emphasizes economic development in specific areas, typically with benefits for business investment but may not encompass the broader range of exemptions and distinct laws that SEZs provide.