FREE ECONOMIC ZONES IN FUNCTION OF ECONOMIC DEVELOPMENT AND STRENGTHENING COMPETITIVENESS OF BUSINESS COMPANIES

Abstract

Free economic zones represent a simple but strategic link between the economies of countries in transition and technologically and technically equipped companies interested in strategic investing and investments. Following global trends, empirical experiences and noting the interdependence of the potential of raw materials as the basis and the resource on the global market, it is necessary to prove the hypothesis of “interconnection between techno-technological production plants and business progress within free economic zones with the aim of strengthening supply chains”. In the paper, we have put forward another hypothesis: “business in free economic zones brings greater results and measurable parameters compared to business activities in business zones of local communities”. In order to understand the set hypotheses, our work included extensive research and experience, where we used inductive and deductive methods, methods of analysis and synthesis, methods of abstraction and concretization, methods of generalization and specialization, methods of classification, methods of description, methods of compilation, as well as the comparative method. Experiences, economic indicators of business activities in free economic zones were the source for data processing, with the aim of comparative analysis of parameters and indicators of business results that were key in the management’s decision making to move companies’ production capacities, transfer technology, training and educate the staff necessary for work in free economic zones. In the conclusion, we clearly link global, regional and local trends and experiences with recommendations to define the basic development directions in a consistent and integral way through a multidimensional approach and presentation of the platform for creation of strategic documents as necessary and sufficient assumptions for the launch of free economic zones and thier realization in the coming years. In this Paper, we have proven that by developing free economic zones, in relation to business zones of local communities, we establish new strategic partnerships with international companies, investors with clearly created value chains within strategic, tactical level of connection and introduction of new technologies beside adding new values in production capacity of free economic zones.