3.2 sez/open door policy

Question 1

SEZ

Answer 1

large areas of land set aside the government in locations well placed for international trade eg seaports
companies can export commodities from these zones without incurring domestic taxes, so encouraging TNCS to set up subsidiaries(branch plants)
which provides employment for locals, payment of payroll taxes, technology transfer.
overtime domestic firms can link in to branch plant in time strengthening of the domestic economy in and around the zone may enable these domestic firms to expand abroad themselves.

Question 2

Open door policy

Answer 2

desire to encourage FDI to help secure Deng xiaopings reforms
-carry out significant economic reform
-communist party loosened governmental control over citizens personal lives
-marked chinas transition from a planned economy to a mixed economy with an increasingly open market environment
-4 sezs were set up with the aim of attracting capital and business from these external communities (400 million lifted out of poverty)
-China agreed to remove export restrictions on ‘rare earth’ minerals

-economic growth was rapid
-became the worlds biggest trading nation in goods , however it was not sustained and in 2016 there was a significant slowdown in chinas economy.