Allow me to begin this article by simply introducing some basic definitions. In general, the globalization project is referred to as the actions taken place by the government to participate in the world economy, usually through liberalization; giving out freedom of trade and cutting
Allow me to begin this article by simply introducing some basic definitions. In general, the globalization project is referred to as the actions taken place by the government to participate in the world economy, usually through liberalization; giving out freedom of trade and cutting off custom restrictions. The process of expansion of international trade and financial flow, as well as flow of production factors for an economy such as foreign direct investments are the main acts under the globalization project in an economic sense. Some statistics available show that this global movement -the globalization project -has raised the living standards for many, benefitting people all across the world. But I would have to mention that at the same time, it also has promoted poverty across the globe (which will be discussed in this article as it continues). The globalization project has many aspects to itself which one in particular could be defined as the development of EPZs, the neoliberal economical approach towards the global market and adjustments plans such as the ones used at the time of debt crises.
Since the economic crisis in the west in the 1980s (will attend to this point as we continue with the rest of the article), export processing zones have become a very important part of neoliberalism development strategy, which once again falls under the globalization project. Entry to the global market appears to be a very tempting opportunity for many countries since it attracts foreign markets and raises the GDP, the income of the government through attraction of foreign currencies and the number of sales of the domestic goods on a greater scale. The improvements in sales of a country are relevant to the supply and demand figures for domestic products. The fact that the consumer demand rises when the market is expanded helps a country to increase its exports. EPZs are a well known method for the governments to gain easy access to the global market. Export processing zones are defined areas of a country that are designed to attract foreign investments accordingly; based what explained previously. The efforts start where government regulation, taxes and trade tariffs are lifted or are reduced. It is believed that through the entry in the world market, the economy of any country would benefit impressively without any losses, but when examined, globalization has some negative aspects towards the such nations. Such examples could be mentioned as: downgrading the social goals of the national development of a country and favouring the rich in order to help them earn more profit while the poor suffer even more. Thus, one could simply say that the acts of globalization promote poverty indirectly.
Practically, export processing zones (EPZs) are used as a strategy to promote economic development; therefore, EPZs are connected to the globalization subject through the elaboration of such developments. The goal of globalization is more varied that what it seems it would be. It could have been addressed to as the development of economy on the global scale, while the internals, national developments of a country are not much affected by the project. EPZs are helpful in order to achieve this goal and they allow countries reach out into the international market despite the negative aspect of employment and wages that EPZs might bring for the nations involved. The role of the state in labour-management relations and the type of workers employed in these export zones is another factor that could relate the growth of globalization project to EPZs. These roles are some critical variables which might affect the state’s 