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There are free trade zones in five harbors and one airport in Taiwan; Farglory Free Trade Zone, which combines airfreight and free trade zones, is the most complete one. Its advantage ought to be quite suitable for international manufacturers with intensive international import and export to set in. However, the rate of the settlement of manufacturers has not been high since it started operating in 2006; the benefits predicted by the government are even less. Therefore, this study attempts to find out the problems of operation of free trade zones by talking with the manufacturers, and, based on these problems, gives out advice on improvement, in the hope of appealing to more manufacturers to come into the free trade zone.
This research finds out that as long as the government defines free trade zones clearly and modifies the enactments and taxation properly in order to meet the needs of the manufacturers, then free trade zones will appeal to manufacturers to come in, and make supplier chain come in as well. Thus, good cluster effects form. Moreover, abundant living requirements nearby will get prospered. Thus, the purposes of the set of free trade zones are attained.
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