SEE: Globalisation: 3.2C
- Created by: MaggieNaylor
- Created on: 10-03-22 19:49
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- 3.2C: Role of government in attracting FDI encourages globalisation
- Special Economic Zones
- An industrial area, often near a coastline, where favourable conditions are created to attract foreign TNCs
- These conditions include low tax rates and exemption from tariffs and export duties
- From its 1978 Open Door Policy, China created four SEZs
- By 2005, 50% of Chinese exports came from these zones
- These offered tax incentives and cheap labour
- Now nicknamed 'workshop of the world', it is the world's largest economy
- An industrial area, often near a coastline, where favourable conditions are created to attract foreign TNCs
- Government subsidies
- Tax breaks, UK did this in the London Docklands
- UK also gave subsidies to companies to locate new manufacturing plants e.g. Nissan
- Attitudes to FDI
- UK embraces FDI from Thatcher's government, we are now fourth largest recipients
- China is now a major player in the inflow and outflow of FDI
- Special Economic Zones
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