Special Economic Zones - Essay Example

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Summary

This paper 'Special Economic Zones' tells us that to promote the development of national economic reform, special economic zones were purposely established throughout Laos. In this country, the Lao National Committee for SEZ is currently managing and assisting the long-term development needs of special economic zones…

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Subject: Business
Type: Essay
Level: Undergraduate
Pages: 29 (7250 words)
Downloads: 3
Author: ipacocha

Extract of sample "Special Economic Zones"

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In the process of improving transportation infrastructure that connects the SEZs to the local market (Baissac, 2011, pp. 24 – 25), ports, and airports, more local and foreign investors will become more attracted to investing in SEZs.

Companies that operate in SEZs are normally given special business incentives like duty-free imports, tax holidays, the benefit of having a more simplified procedure when dealing with the customs (FIAS, 2008, p. 2), or reduction in import taxes for foreign-based companies (Gunawardana and Sisombat, 2008). Since each type of SEZ is being governed by a different set of policies and rules particularly when it comes to taxation and conditions on investment and international trading (Dobrogonov and Farole, 2012, p. 5; Baissac, 2011, p. 23), this study aims to focus on analysing the case of Savan-Seno Special Economic Zone (SASEZ) in Savanna khet

Province in Laos. As such, the rationale for zone development will be tackled in detail followed by discussing the geographical, economic, and international trade factors that can affect the performance of SASEZ.

1.1
Aim or Purpose of the Study

About geographical, economical, and international trades, this study aims to identify the determinants of FDI, participation strategies used by foreign investors, and the common challenges these firms would normally encounter in SASEZ.

The main objective of this study is to identify all geographic, economic, and international trade factors that could either serve as either obstacles or advantages to firms located in SASEZ. Eventually, the following sub-objectives will be considered throughout this study:

Review and apply business theories that are directly related businesses to in SEZ; and
Identify foreign investors’ motives, strategies, and modes of entry in SASEZ.
Research Questions and Research Hypothesis
The following research questions will be addressed throughout the research study:
1. What are the theories related to FDI?
2. What is the main reason why Laos the government has invested a lot of money inn zone development?
3. In terms of geographical, economical and international trade factors, what are the impact of creating SEZs on FDI?
4. What are the common entry mode choices of foreign investors?

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