Free Trade Zones in UAE and Economic Development Research Paper

Free Trade Zones in UAE and Economic Development - Research Paper idealThese atomic number 18as are very advantageous to traders and manufacturers in various industries, since there are fewer barriers to trade in these zones than in areas that are not free trade zones. The first Free Trade Zone was complete in a small rural town in Ireland to reduce the rate of unemployment in the town, to enforce the airport that was mostly being at a lower placeutilized in the town, as well as to generate revenue for the Irish government (Brzuzy and Lind, 2007). This was in the early 20th century, and since then due to its colossal success, many more FTZs have cropped up throughout the beingness, mostly in developing countries. One of the chief(prenominal) aims of establishing FTZs was to hold employment opportunities, especially for locals in the area around the FTZs and also to generate income for governments. Toward this end, the employment rules politics the FTZs are a little differen t from those governing those companies that do not fall under FTZ. Firstly, corporations operating in the FTZs usually discourage their employees from joining or forming trade unions. Workers who try to do so are usually threatened with dismissals or closure of the companies, hence loss of livelihoods (Perman et al., 2004). FTZs are also usually exempt from most countries employment laws, mostly using the laws set out by the International Labor Organization, ILO. Most FTZs also emphasize that a majority of the workers in the zones be citizens of the host country. However, exceptions are made if there is not enough local labor to be utilise by industries in the zone or if there is a need to import people with genuine skills that are required by the companies. Furthermore, most corporations in the FTZs employ workers on short cause basis of between one and at most 5 years. However, most countries legislations require that these companies provide benefits such(prenominal) as medical schemes to their workers despite their contract status. One of the most vibrant FTZs in the world is the Dubai Media City free zone. As the name suggests, this FTZ is located in the city of Dubai, in the United Arab Emirates in the Middle East. The zone was established in 2001 and is located a few miles from the Dubai International Airport, which serves as the main infrastructure for the traders that visit the zone (BBC News, 2009). As the name suggests, Dubai Media City is a free zone established wit the media as its main trade. In the zone, there are several media hoses, both local and world-wide which carry on their business. The main media activities in the zone include Music, Public Relations, Broadcasting, Publishing, Advertising, Marketing Consultancy, News Agency, output signal and Post-production, Research among other media-related activities. Located in over 30,000 square meters of land, the DMC has enviable infrastructure unrivalled in many areas trying to reach its st atus. Several advantages have been experienced by the UAE because of the DMC. The first and most taken for granted(predicate) is the increase in revenue from the zone the DMC contributes a substantial amount to the countrys economy. The DMC has promoted the knowledge of infrastructure in Dubai. There has been an influx of media houses from all over