by Max Barry

Latest Forum Topics

Advertisement

1

DispatchAccountTrade

by The French Republic of Antagarichh. . 24 reads.

Economy - Limited Economic Zones

Background

A Limited Economic Zone is a type of Special Economic Zone where foreign companies of one or more select nations are allowed to operate freely under the economic laws and regulations of their home country. Currently, the East African Federation operates a Limited Economic Zone in Nagoya, Japan, while Japan operates a Limited Economic Zone within Obock City, East Africa.

Limited Economic Zones serve as a way to help establish preliminary transnational trade between one or more nations by comfortably establishing foreign companies in another country. While the businesses operating within a Limited Economic Zone pays taxes to the host country according to the host’s tax policies, they follow the rules and regulations of their country of origin as well as their laws.

Definition and Use


Within the East African Federation, a Limited Economic Zone is an area of a city or countryside which is set aside for usage specifically by foreign businesses and other economic interests. Within a Limited Economic Zone, foreign corporations are subject to the laws and regulations of their country of origin while paying their operational taxes to the country they are being hosted in. The World Bank defines such areas as "areas wherein a nation's economic interests may operate warehousing, storage, and distribution processes on foreign soil while adhering to domestic regulations but paying duties to the local administration."

Such areas are used to promote international trade between two or more nations while also increasing a country's foreign markets in a way friendly to domestic industries. Additionally, Limited Economic Zones can be used as dedicated exportation regions where goods manufactured in a home country may be sent to be distributed to a local population. Both citizens from the country of origin and from the host country are open to application for employment given they possess a passport and, under very unique and rare circumstances, citizenship for the company's country of origin.

History in East Africa


The federal government of the East African Federation employs Limited Economic Zones as a means to establish improved trade relations with foreign nations, as well as to increase the quantity of goods and services East Africa imports and exports while keeping from creating a negative balance of trade. The first Limited Economic Zone within East Africa was established by the Empire of Japan in 1985 in the port city of Obock City, while East Africa created its first Limited Economic Zone within the Japanese port city of Nagoya as part of the East Afro-Japanese Maritime and Trade Agreement of 1985. While similar policies had been established earlier in the year between East Africa and India, the first official Limited Economic Zones were not established until the creation of the program between East Africa and Japan.

The French Republic of Antagarichh

Edited:

RawReport