Why are export processing zones promoted and accepted by some countries?
Countries depend on investment, new technology and foreign currency. EPZs are seen as a way of strengthening export and commerce. They are also seen as a way of reducing unemployment. In many poor countries, a low paid job may be better than no job at all. For many countries export through EPZ counts for a larger part of their export earnings. The poorer a country is, the better terms they have to offer to the companies. Countries that have a strong economic development can make higher demands on investors. The costs and benefits of EPZs have to be carefully weighed-up. The government spends large amounts providing the infrastructure and running the zones, and cut taxes and duties for a period. In return it attracts investors, collects rents, generates foreign exchange and creates jobs. Investment has been narrowly concentrated in the electronics and clothing and footwear sectors and the investors usually locate only simple processing tasks in EPZs, therefore limiting the technology an
