The Advantages and Disadvantages of Constructing Free-Trade Zones as an Industrialisation Strategy

Essay from the year 2014 in the subject Business economics - Economic Policy, grade: 68, South Bank University London (Faculty of Social Sciences), course: Msc.Development Studies, language: English, abstract: In pursuit of development, governments of developing countries have adopted different industrialisation strategies over the years. One of such approach to industrialisation is export -oriented manufacturing and the common policy instrument adopted to stimulate commercial export has been the establishment of free trade zones. This paper tries to find out the possible benefits and disadvantages associated with the creation of free trade zones as a strategy for industrialisation. The first part tries to explain what constitutes free trade zone by various authorities on the subject, the types and origin of free trade zones. The second part identifies the various posits on the impact of free trade zone. The third section identifies some of the benefits and shortcomings of free trade zones as an industrialisation strategy. The final part makes up the conclusion and recommendations.