Before the First World War, the most famous financial center was London.
In areas usually located near large trading ports, such as Barranquilla in Colombia, legal and natural persons engaged in foreign trade have the right to freely import and export goods, tranship and store them (for up to one year without taxes). ), packaged, wholesale and retail.
The possibility of duty-free storage of products in anticipation of favorable changes in world conditions or markets in the domestic market of the country where the zone is located, is extremely beneficial to suppliers. Deliveries from the zone to the domestic market are subject to customs duties and import taxes, as for similar goods imported directly from abroad.
First of all, local entrepreneurs are engaged in activities on the territory of free trade zones. In 1995, the Mercosur free trade zone was established in Argentina, Brazil, Paraguay, and Uruguay.
Subsequently, in free trade zones began to appear enterprises for processing imported goods. Therefore, free trade zones gradually moved to the rank of free production zones.
The vast majority of production areas operate for export. Under Brazilian law, enterprises in export-production zones are required to export 100% of their products.
Some areas (such as the Manaus area in Brazil and Tierra del Fuego in Argentina) operate only on the domestic market.
SEZ development model in China
Among the developing countries, China’s special economic zones have received a very noticeable development and resonance. Starting with small areas united by special zones in the early 1980s, the Chinese leadership extended their regime to hundreds of square kilometers by the mid-1990s.
In addition to the most famous in the country and abroad special economic zones – «Shenzhen», «Zhuhai», «Xiamen» «Shantou» with a long history, as well as the special economic zone «Hainan» (exists since 1988), the country has developed significantly. zones of technical and economic development (more than 2 dozen) and zones of development of new and high technology – technology parks. A special role is given to the Shanghai zone of economic development «Pudong».
The significance of the project, designed for several decades, is determined not only by the fact that the Pudong area should eventually become a major center of China’s industrial production, but also to help transform Shanghai into the largest trade and financial center in Asia and the Pacific.
The creation of special economic zones became an 123helpme.me important part of the open foreign economic policy proclaimed by the Chinese leadership in the late 1970s. In choosing the model of SEZ development, the Chinese leadership proceeded from the current needs of the country and the experience of the operation of special zones in other countries.
The experience of Singapore, Taiwan, and the United States was studied in the greatest detail. During the preparation of the organization of special economic zones, several variants of the mode of their functioning were proposed. As a result, the way of organization of SEZ was chosen with the creation of an export-oriented economy structure, all kinds of attraction of foreign capital, as well as a significant improvement of production technology. Special economic zones began to play a connecting (buffer) role with other parts of the country, implementing an «open door» policy.
Since the early 90’s in port cities, special economic zones of China are beginning to emerge free customs territories – free trade zones (TRC), which, according to Chinese experts, will develop on models similar to those existing in other countries.
The practice of operating China’s special economic zones and other areas with a favorable investment climate has shown undoubted success. Among the achievements of the SEZ, both Chinese and foreign experts include, first of all, high, sustainable economic growth, large amounts of foreign investment in areas, a significant increase in productivity and, finally, a significant increase in living standards.
Free economic zones in China (in addition to the common goals of special zones with other countries) are generally an experiment in the use of market relations in terms of state ownership. The transition «all together» to a market economy is considered unacceptable in China, fraught with serious shocks for the people and the economy as a whole.
The specificity of China’s experience in regulating free economic zones is that they are something more for modern China than special areas for stimulating foreign and domestic entrepreneurship, attracting investment, and accelerating the development of certain industries. According to Chinese economists, China’s special economic zones are developing and running an economic model that almost all of China will live in in the 21st century.
Conclusions about the general features, achievements and features of SEZ development in the world
The world experience of functioning of free economic zones allows to formulate the basic conclusions about their achievements, the general features and features of development. The functioning of special economic zones in industrialized countries shows that the basis of their success is, on the one hand, good planning of the initial stages of their development, and on the other hand – the flexibility of zone management. The changing situation in the world economy (STC, competition between transnational corporations, changes in exchange rates, changes in the system of international exchange, etc.) affects the development of SEZs and, accordingly, requires an adequate response to these changes.
Socio-economic benefits from the creation of zones (outside – trade in the United States, «Shannon» in Ireland, etc.) are quite significant. These zones created a significant number of jobs, revived international trade, increased foreign trade efficiency, research and production potential, and so on. An important aspect of the activities of special economic zones in industrialized countries is that they work not only on the world but also on the domestic market.
Free economic zones operating in developing countries have a number of common features of development:
First, the most widespread in these countries were export-production zones. As mentioned above, the creation of EMU is determined by a number of economic reasons, and above all, the need for development and production of industrial goods for export, attracting foreign capital, advanced science and technology, modern technical information.
Second, the special management regime in free economic zones is becoming more liberal and preferential for foreign entrepreneurs. This is due to the intensification of international competition between special economic zones and, accordingly, attempts to prove their comparative advantages over similar other SEZs.
Third, in the process of functioning of free economic zones there is a trade and industrial diversification of their activity, complex development. Modern STR brings to the fore free economic zones, which concentrate knowledge-intensive industries associated with the development of new and high technology.
The significant role of free economic zones in the socio – economic development of certain isolated areas of different countries, a particular industry, in attracting foreign or capital to revive small and medium domestic business, however, does not provide sufficient grounds to consider them as a universal way to modernize the economy.
The degree of influence of the functioning of special economic zones on the other territory of developing countries is quite limited. For industrialized countries, as a rule, it is not a special task to spread such influence. The organization of the SEZ plays a strictly defined role in reviving the entrepreneurial activity of a given region or region in focusing on the development of a particular sector of the economy.
In addition, the formation of free economic zones is associated, as a rule, with significant investments and subsequent significant efforts of the state to develop them. Without strictly defined centralized support, they are virtually unviable.
The concept of the international capital market, features of formation. Abstract
The international capital market is a market in which long-term (maturity of more than one year) debt obligations and shares are bought and sold. Capital market instruments: stocks, mortgages, bonds, government securities, consumer and bank commercial loans
The participation of national money and capital markets in world market operations is determined by the following factors:
the presence of a developed credit system and stock exchange; the country’s place in the world economic system and its monetary and economic condition; moderation of tax pressure; preferential currency legislation, which opens access to foreign borrowers to the national market of money and capital and foreign securities – to stock exchange quotations; good geographical location; relative stability of the political regime. These factors limit the range of national money and capital markets that perform international transactions. As a result of competition, world financial centers were formed – New York, London, Zurich, Luxembourg, Frankfurt am Main, Singapore and others.
Before the First World War, the most famous financial center was London. This was determined by the high level of development of capitalism in Great Britain, its broad trade relations with other countries, the relative stability of the pound sterling, the developed credit system of the country. After the First World War, the world’s leading financial center moved to the United States.
Switzerland and Luxembourg are actively engaged in international credit operations in Western Europe. The share of the latter is about 1/4 of all Eurocurrency loans. Tokyo became the new world financial center due to the strengthening of Japan’s position in world markets, the creation of a strong foreign banking network, the abolition of currency restrictions.
Recently, new financial centers have appeared, such as the Bahamas, Singapore, Hong Kong, Bahrain, etc., due to preferential tax laws and low operating costs in these countries.