Answer :
Final answer:
A free zone is a designated geographic area where businesses can operate with more favorable economic conditions than the rest of the country. One advantage of a free zone is that it can stimulate economic growth. Malaysia has several free zones that have attracted multinational companies and contributed to its economic development.
Explanation:
A free zone, also known as a free-trade zone or special economic zone (SEZ), is a designated geographic area where businesses can operate with more favorable economic conditions than the rest of the country. In a free zone, businesses are typically exempt from certain taxes and regulations, making it easier for them to engage in international trade and attract foreign investment.
One advantage of a free zone is that it can stimulate economic growth by attracting businesses and generating employment opportunities. For example, Malaysia has several free zones, such as the Port Klang Free Zone and the Penang Free Trade Zone. These zones have attracted multinational companies and stimulated trade, contributing to Malaysia's economic development.
