The Study On Development Strategy Of Mongolian Free Trade Zones

Free Trade zones commonly used method in developing countries to promote export, attract foreign investment, management know-how and technology to improve economic and trade conditions.Exactly10years ago, in2002year, the Parliament of Mongolia passed the law about Free Trade zones, and the three places have been declared as a free trade zone, but still there is no operation in any of them.The innovative point is, determined current problems through doing research from Trade companies, that FTZ have to solve urgently. Also, made an action plan, included every aspect of FTZ. Most of professionals think that, biggest problem and reason of FTZs are not developed is lack of financial resources and Russian trade barrier. But doing this research I came in conclusion that many important things still not done, which are blocking the development. For instance, the lack of clear strategic goal and positioned industries, products, even targeted companies, clearly determined regulations, preferential policies to attract them.The main purpose of this research is to provide Mongolian Free Trade Zones development recommendations. Ⅰ did this research not only to provide general suggestions, but also to let my thesis could be good handbook or guide for FTZs committee.Research has5major parts.First part; included thesis purpose, research method, general introduction and literature reviews.Second part; generally introduced about FTZ's development history and common types.Third part, is about Mongolian FTZ's current situation, confronting problems which hindering the progress and future development opportunities. From Mongolian trade analysis, obviously seen that Free Trade zones could be serve as catalyzer to make Mongolia not depends on mineral resources. Additionally, I did research which is covering4trade companies in order to determine current problems when doing trade with Russia and China. All of them pointed significance of FTZs.Forth part, was studied China's, Russian and Kazakhstan's FTZs. They have both achievements and mistakes. Therefore, pointed out major factors for Free Trade Zones development. Thus, it helped me to provide next part's recommendations for Mongolia's FTZs.Fifth part:Raised major recommendations as well as action plan direction.They are waiting that Russia opens market and the Government provide them enough money to build infrastructure, then FTZ will work appropriate. But let's assume that from September of2012Russia opens their market as the member of WTO and Mongolian Government made decision to finish all infrastructure construction at the end of this summer, THEN IS FTZ READY FOR ANNOUNCE THEIR PREFERENTIAL POLICIES, ADVERTISE IT AND RECEIVE FOREIGN INVESTMENTS FROM WORLD'S LEADING COMPANIES? The final conclusion was NO, there is still lot of works to do.