Question

    Special Economic Zones (SEZs) were established with which of the following objectives?

    A To attract foreign investment Correct Answer Incorrect Answer
    B To protect domestic market from direct competition from multination. Correct Answer Incorrect Answer
    C To provide more capital to agricultural and allied activities. Correct Answer Incorrect Answer
    D 1 and 2 above Correct Answer Incorrect Answer
    E 1 and 3 above Correct Answer Incorrect Answer

    Solution

    A special economic zone (SEZ) is an area in which business and trade laws are different from rest of the country. SEZs are located within a country's national borders, and their aims include: increased trade, increased investment, job creation and effective administration. The creation of special economic zones by the host country may be motivated by the desire to attract foreign direct investment (FDI).

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