EPZs are areas often in developing countries, set up by the government to encourage investment in the country’s export industry (encouraging multinational countries from other countries to invest in produce manufactured in these EPZs).
To encourage foreign investment, investors are given incentives, such as:
- Exemption from complying to labour laws protecting workers rights and restricting workers’ ability to organise against poor working conditions (this way, corporations will be ensured cheap labour without challenge from workers).
- Exemption from paying taxes.
Workers are therefore exposed to poor working conditions in these EPZs.