Unit 4 - China - Free Trade Zones

Question 1

Where is China?

Answer 1

• outheast of Asia

Question 2

How much of China’s GDP was generated in SEZs by 1990s?

Answer 2

• By 1990s, 50% of GDP was generated in SEZs

Question 3

What is one of the largest FTZs in China?

Answer 3

• One of the largest FTZs is the Shanghai FTZ

Question 4

What are the benefits of the SFTZs?

Answer 4

• simplified regulations for starting new businesses
• tax-free period of ten years
• unrestricted convertability between foreign currencies and Chinese currency
• potential

Question 5

What are the costs of the SFTZs?

Answer 5

• doesn´t share the benefit of economic development as it is concentrated only in one place
• Inequities in development
• Labour violence and abuse
• Child labour
• Increasing crime e.g smuggle
• Resources and environmental costs

Question 6

What is an FTZ?

Answer 6

• a group of countries that have agreed to remove trade restrictions between themselves while retaining independent trade policies towards non-members