1. Export processing zones in historical perspective

Why do enterprises invest in zones?

There are a number of factors which influence the choice of a production platform by an enterprise, including (not in order of priority):

• the generosity of the incentives on offer
• relatively low labour costs
• the availability of appropriate human resources
• strategic location close to key markets or partner firms
• the quality of the infrastructure
• the supply of raw materials
• quota in terms of the Multifibre Arrangement (MFA)
• the labour relations environment
• political and social stability
• trade agreements (such as NAFTA)

This report will not deal with all of these factors, many of which are self-evident. The first two, incentives and labour costs, will be dealt with separately, before a discussion of the new logic of global production which will situate factors such as strategic location close to key markets, quotas in terms of the MFA and trade agreements. Labour relations, working conditions and human resources issues will be dealt with in the next chapter.