SEZ :- Special Economic Zones- Designated areas in countries that possess special economic regulations that are different from other areas in the same country.

• The creation of special economic zones by the host country is to attract foreign direct investment (FDI).
•  Conducting business in a SEZ usually means that a company will receive tax incentives and the opportunity to pay lower tariffs. 
• In Special Economic Zones business and trades laws that differ from the rest of the country. 

• The aims of the zones include: 

         -increase trade, 
         -increase investment, 
         -job creation and 
         -effective administration.

• While many countries have set up special economic zones, China has been the most successful in using SEZ to attract foreign capital. In fact, China has even declared an entire province (Hainan) to be an SEZ, which is quite distinct, as most SEZs are cities. 

• The operating definition of an economic zone is determined individually by each country