Advanced Placement (AP) Human Geography Practice Exam 2025 – The Comprehensive All-in-One Study Guide for Exam Success

Export-processing zones (EPZs) are primarily established to stimulate and attract foreign investors. These zones are designated areas within a country where businesses can operate with reduced taxes and regulations on exports. The main objective is to create an environment that is favorable for manufacturing and assembling products for export, ultimately bolstering economic growth and international trade.

By offering incentives such as tax exemptions, ease of customs procedures, and access to specific infrastructures, EPZs make it more attractive for foreign companies to set up operations. This influx of foreign investment often leads to job creation, technology transfer, and increased economic activity in the host country. The focus is not on local self-sufficiency, increasing taxes on imports, or specifically supporting small-scale farmers; instead, it centers on integrating the local economy into the global market through enhanced foreign investment and export capacity.