Answer to Question #230126 in Macroeconomics for Sam

Question

Briefly explain the weakness of the RAS industrial development zone

Answer 1

Solution:

The various weakness of the RAS industrial development zone includes the following:

a.). The various tax exemptions and incentives has led to massive revenue losses in numerous industries.

b.). Most traders are attracted in SEZ to acquire at affordable rates and create a land bank reserve for themselves.

c.). The project does not match the expectations required. The number of units applying for setting up EOU’s are not in proportion to the applications of setting up SEZ.

d.). Poor management resulting to waste of key resources due to misplaced priorities.