Areas established by many countries to attract foreign investment and boost manufacturing are specialized industrial parks. These zones offer incentives such as reduced taxes, relaxed regulations, and improved infrastructure to companies that locate within them. A common example involves electronics assembly, where components are imported, assembled, and then re-exported as finished products.
These designated areas contribute significantly to economic growth by generating employment, increasing export revenue, and facilitating technology transfer. Historically, they have played a crucial role in the industrialization and economic development of many countries, particularly in the developing world, by attracting foreign direct investment and promoting global trade.