Many investors resolutely consider investing in East-European markets. Obviously, it is risky to generalize about all markets in that part of Europe. For instance, investing in Poland still remains a great deal more popular than investing in Ukraine, due to a well-known political situation.
Nevertheless, it is easily visible in many data as well as different analysis that foreign investments in that part of Europe remains growing. At this moment, many companies are opening their offices or affiliates in East-European markets. There are some factors which might be indicated as main results of this situation.
Firstly, the economy of these countries are continuously growing. It means that its societies becomes more and more rich. Obviously, it attracts new businesses and investments as individuals may spend much more on their consumption. It is well known economic fact that when society gets richer, new investments come. Certainly, if there is no limitations established by the state.
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And here we reach the second important factor which is: incentives for investment. Many governments make a decision to create and implement various investment incentives strategies. They are designed with the purpose to encourage foreign investors to come to the country. These incentives might have different forms. Everything depends on a specific plan designed and implemented by government of the particular country.
Frequently, it might be an incentive for a specific industry, or even for a specific region. In the second option, it normally aims to develop the poorest regions of the country. 1 of the example of such investment incentives may be the idea of creating industrial parks. Such idea is very common in the region of Eastern Europe. They are usually created in a special regions which have the highest potential for industrial development. What is important is that the area is comfortably connected with other regions and cities by roads, ports and railroads. For example, industrial park in Poland frequently may offer good business infrastructure connecting not only other Polish cities, but also with nearby countries such as Lathvia and Ukraine.
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