Special Economic Zone - SEZ

AAA

DEFINITION of 'Special Economic Zone - SEZ'

Designated areas in countries that possess special economic regulations that are different from other areas in the same country. Moreover, these regulations tend to contain measures that are conducive to foreign direct investment. Conducting business in a SEZ usually means that a company will receive tax incentives and the opportunity to pay lower tariffs.

INVESTOPEDIA EXPLAINS 'Special Economic Zone - SEZ'

While many countries have set up special economic zones, China has been the most successful in using SEZ to attract foreign capital. In fact, China has even declared an entire province (Hainan) to be an SEZ, which is quite distinct, as most SEZs are cities.

RELATED TERMS
  1. Tariff

    A tax imposed on imported goods and services. Tariffs are used ...
  2. Economics

    A social science that studies how individuals, governments, firms ...
  3. Foreign Direct Investment - FDI

    An investment made by a company or entity based in one country, ...
  4. Protectionism

    Government actions and policies that restrict or restrain international ...
  5. Tiger Economy

    A nickname given to the economies of Southeast Asia. Some of ...
  6. Brazil, Russia, India And China ...

    An acronym for the economies of Brazil, Russia, India and China ...
Related Articles
  1. Markets

    Great Company Or Growing Industry?

  2. Economics

    What Is An Emerging Market Economy?

  3. Economics

    What is the difference between loan ...

  4. Economics

    The New Global Banking Regulations To ...

Hot Definitions
  1. Flight To Quality

    The action of investors moving their capital away from riskier investments to the safest possible investment vehicles. This ...
  2. Capitulation

    When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into ...
  3. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  4. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  5. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  6. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
Trading Center