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Sunday 15 June 2014

Never explored before in globalisation: If we have SEZ,EPZ, science and techno parks and industrial clusters, what about these "wacky" ideas?

1) FEZ (Foreign establishment zone)
Zone where foreign firms are allowed to operate, especially retail and food outlets
->Monetary and tax incentives to get foreign firms from a certain country to operate in area, especially Small and Medium enterprises from the country
-> Far away from local towns, hence do not directly impact local businesses (Less competition)
->Idea is that more foreign firms can invest in country(Hence increasing FDI) without affecting local businesses in a hard-hitting way (So it is a win-win situation)
->Also encourages local linkages as area being a foreign economic enclave will allow local businesses to form joint ventures by contacting businesses around the area

2) Local economic zone
->Local variant of the FEZ
->Only local businesses allowed here
->Together with distant FEZ, reduce competition to local firms

3)Local TNC linkages zone(LTLZ)
->Main idea is this:Local TNC goes overseas and joint venture with foreign firms(Say, company A from country B forms joint venture with company B from country B). Country A now sends agents to encourage company B to set up branch plants/national HQ/invest in country A. The LTLZ is the place where company B, along with other foreign firms that do joint venture with company A, set up operations in the country.

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