Lots of investors seriously contemplate investing in East-European markets. Clearly, it is risky to generalize about all markets in the part of Europe. E.g., investing in Poland still remains much more famous than investing in Ukraine, because of a well-known political situation.
Nonetheless, it is clearly visible in many data and varous analysis that foreign investments in that part of Europe remains growing. Nowadays, plenty of enterprises are opening their offices and subsidiaries in East-lawyer (look (source)
) markets. There are a few factors which may be indicated as main results of such situation.
Firstly, the economy of these countries are still growing. It means that its citizens becomes more and more well-to-do. Certainly, it attracts new companies and investments as men and females may spend more money on new products. It is widely known economic fact that in the moment society gets richer, new investments appear. Apparently, if there is no restrictions decreed by the government.
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And here we reach the second relevant factor which is: incentives for investment. Plenty of governments decide to create and implement different investment incentives schemes. They are designed with the purpose to encourage foreign investments in the country. Those incentives may have various forms. A lot of depends on a concrete plan designed and implemented by government of a concrete country.
Occassionally, it might be an incentive for a concrete industry, sometimes only for a specific region. In the second case, it normally aims to develop least developed areas of the country. 1 of the example of such investment incentives may be the idea of creating industrial parks. Such idea is rather common in various Eastern European countries. They are frequently created in a special regions which have the highest potential for industrial development. What is relevant is that the area is comfortably connected with other areas and cities by roads, ports and railroads. For instance, industrial park in Poland frequently may offer good business infrastructure connecting not only other Polish towns, but also with nearby countries such as Lathvia as well as Ukraine.
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