In recent year there has been increasing the number of special economic zones all over the world. Because it is one of the best way to attract foreign investments to the national economies of developing countires.Special eonomic zones are the region where the financial and economic laws are relaxed. Foreign investors would be ready to invest in an area if the conditions are favorable for their businesses. Many countries are using such kind of method to accelerate their eonomy and improve their facilities to the foreign investors which their investments can be reproduced in national eonomies. By creating certain areas within the country where taxes are reduced, financial and enviromental regulations are not so tough , and according to these criterias there are various types of special economic zones throughout the world.
Free trade zones( FTZ) are tax-free area where goods can be landed and “value added”, through handling and manufacturing, and re-exported without the intervention of customs. Theese zones generally focus on labour intensive maufacturing goods, such as textile and eletrical equipment and which governments can increase the inflow of foreign currency and economic growth by exproting theese products. Free-trade zones are organized around major seaports, international airports, and national frontiers—areas with many geographic advantages for trade. Examples include Hong Kong, Singapore, Colón (Panama), Copenhagen, Stockholm, Gdansk (Poland), Los Angeles, and New York City. Alternative devices such as the bonded warehouse and associated systems are used in some large seaports (e.g., London and Amsterdam).
Export processing zones (EPZ) are mostly used by developing countries to encourage commercial exports. The difference between EPZ and FTZ, in EPZ there would not be higher rate of tax reduces and regulatory benefits. These zones have been defined by the