Answers.com > Wiki Answers > Categories > Science > Social Sciences > Economics > What are the disadvantages of special economic zones?

What are the disadvantages of special economic zones?

In: Economics, China and Chinese Territories, India [Edit categories]

Answer:

1. Land Grabbing at very low prices.
2. If SEZ built on agricultural land the farmers will loose their livelihood as they are not skilled laborers it would to tough to relocate them to other jobs. Already Farmers are having very bad days in India, one of the leading agriculture countries.
3. Since the companies that operate under SEZ enjoy a lot of tax holidays it would create a burden on the finance ministry as tax collected would be less.
4. Huge downward impact on Tax: GDP ratio & the common man have to pay the price of it.

First answer by ID2057498785. Last edit by ID2057498785. Question popularity: 17 [recommend question].

[report abuse]

Can you answer these Economics questions?

	How many hrs from Dublin to Canada flying?	Answer it!
	What does Division of labor typically result in?	Answer it!
	What were the economic impacts of the eureka stockade?	Answer it!
	What does the point on budget line indicate in terms of price?	Answer it!
	Is free market economy stimulating greater economic growth?	Answer it!

Relevant answers:

What are the special economic zones of china?
The Special Economic Zones (SEZs) are areas established by the PRC government in the 1980's and 1990's as areas for foreign investment and industrial development. Features included greater local...
What is the meaning of special economic zone?
Special Economic Zone (SEZ) is a geographical region that has economic laws that are more liberal than a country's typical economic laws. The category 'SEZ' covers a broad range of more specific zone...
How many special economic zones in India?
As per the details given by sezindia.nic.in there are 584 SEZ in India.
What are the tax benefits from Special Economic Zone?
These zones were created after 09/11 for New York City and in LA, MS and TX after the hurricanes of Wilma, Rita and Katrina. Anyone owning businesses in these areas which were affected by these...
What is the definition of a Special Economic Zone in Asia?
the areas with high opportunities for the foreign direct investor and high tax deduction as well liberalised rules and regulations for the investors are known as special economic zones for example...