QuestionFree trade zones and export-processing zones are types of special economic zones.ResponsesTrueTrueFalse

Step 1: Break Down the Problem

The question is asking whether free trade zones and export-processing zones are types of special economic zones. We need to assess the definitions and characteristics of each term.

Step 2: Relevant Concepts

1. Free Trade Zone (FTZ): An area where goods can be landed, handled, manufactured, or reconfigured without the intervention of customs authorities. Goods in FTZs are typically exempt from tariffs and other trade barriers.
2. Export-Processing Zone (EPZ): A specific type of free trade zone designed specifically for the manufacturing and assembly of goods for export. In EPZs, similar benefits apply as in FTZs but they are focused on export-oriented industries.
3. Special Economic Zone (SEZ): An area in which business and trade laws differ from the rest of the country. The aim is to attract foreign investment and boost economic growth.

Step 3: Analysis and Detail

• Both FTZs and EPZs facilitate trade and investment by providing favorable conditions for the movement of goods.
• They are established as part of larger economic strategy, categorized under Special Economic Zones (SEZs).
• While FTZs can be involved in various forms of trade, EPZs are more specifically aimed at the production of goods for export.

Step 4: Verify and Summarize

Both free trade zones and export-processing zones fall under the broader category of special economic zones, as they are both created to enhance trade efficiency, regulate economic activity, and promote foreign investment.

Final Answer

True: Free trade zones and export-processing zones are indeed types of special economic zones.