Written by the Fiveable Content Team • Last updated September 2025
Verified for the 2026 exam
Verified for the 2026 exam•Written by the Fiveable Content Team • Last updated September 2025
Definition
Special Economic Zones (SEZs) are designated geographical regions within a country that have special economic regulations and incentives aimed at attracting foreign investment, promoting exports, and boosting economic growth.
Related terms
Free Trade Zones (FTZs): Free Trade Zones are specific geographic areas where goods can be imported, stored, processed, manufactured, or re-exported without being subject to customs duties.
Export Processing Zones (EPZs): Export Processing Zones are industrial parks or zones set up by governments specifically for exporting goods. They often offer tax incentives and streamlined procedures for businesses.
Maquiladoras are manufacturing plants located near the United States-Mexico border where raw materials are imported duty-free for assembly or processing before being re-exported.