Free Trade Zones

What is a free trade zone?

Free trade zones, describe an arrangement where different trading entities, usually member countries, agree to cut or scrap taxes in order to lower business costs and remove bureaucracy. They are also known as "special economic zones" and are mostly found in developing economies. The aim is to give a massive artificial boost to trade, especially between raw material producers and manufacturing based economies. These zones are also attractive to foreign investors as it's cheaper for them to do business there.

Read more about 'Free trade zones in Africa' in this BBC Article. Click here

Trade Protectionism

Protectionism is the economic policy of restraining trade between nations, through methods such as tariffs on imported goods, restrictive quotas, and a variety of other restrictive government regulations designed to discourage imports, and prevent foreign take-over of local markets and companies. This policy is closely aligned with anti-globalization, and contrasts with free trade, where government barriers to trade are kept to a minimum.

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