Ukraving

Many investors resolutely take into consideration investing in East-European markets. Obviously, it is risky to make such general statement about all markets in the region. E.g., investing in Poland still remains a great deal more popular than investing in Ukraine, because of a well-known political situation.

Nonetheless, it is clearly visible in lots of data and varous analysis that foreign investments in this part of Europe are still growing. At this moment, many enterprises open their offices and subsidiaries in East-European markets. There are a few factors that may be indicated as main results of such situation.

First of all, the economy of these countries are continuously growing. It means that its societies becomes more and more wealthy. Surely, it attracts new companies and investments as people can spend much more on their consumption. It is widely known economic fact that when society becomes richer, new investments appear. Certainly, if there is no restraints decreed by the government.

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And here we reach the second substantial factor which is: incentives for investment. Lots of countries decide to create and implement various investment incentives schemes. They are designed specifically to encourage foreign investments in the country. Such incentives may have various forms. Everything depends on a specific plan created and implemented by government of a particular country.

Occassionally, it may be an incentive for a specific industry, sometimes only for a specific region. In the second option, it normally aims to develop the poorest areas of the country. One of the example of such investment incentives might be the idea of creating industrial parks. Such initiative is very common in various Eastern European countries. They are frequently created in a special areas which have the highest potential for industrial development. What is necessary is that the area is well connected with other areas and cities by roads, airports and railroads.

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For instance, industrial park in Poland often could offer well-developed business infrastructure connecting not just other Polish cities, but also with neighbouring countries such as Lathvia and Ukraine.

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