Multinational companies from around the world shift their production to South and South-East Asian countries because of the availability of cheap skilled labor force, the low production costs and financial incentives offered by the governments. Developing countries such as India and Indonesia have established Special Economic Zones to attract foreign direct investment.
This report examines the background of SEZs in both countries, the regulations that govern them and looks at the incentives such as tax exemptions, infrastructure, uninterrupted power supply and relaxation of labor laws offered in two specific SEZs the Nokia Tech Par SEZ in India and the Batam Free Trade and Free Port Zone SEZ in Indonesia.
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