Final answer:
A 'Free Trade Zone' or 'Special Economic Zone (SEZ)' is an area in a country designed for processing and re-exporting imported goods without the imposition of trade taxes. These zones help in technological change and the use of technology to improve manufacturing output, differing from protectionist policies that restrict trade.
Step-by-step explanation:
The area within a country that receives imported goods for assembly or other processing and subsequent re-export is known as a Free Trade Zone or, more specifically, a Special Economic Zone (SEZ). These zones typically have access to a port and provide various benefits to businesses, including the absence of taxes on trade. This creates a hub for manufacturing jobs that rely on assembling imported components and re-exporting the final product. These zones are often established to foster technological change and promote the usage of advanced technology to enhance the quality and variety of products produced.
Interestingly, such zones contrast sharply with protectionist strategies that some countries use to shield their domestic industries from foreign competition. While SEZs facilitate international commerce and industrial development, protectionist measures, such as tariffs and quotas, are used to restrict foreign competition and protect local industries.