Public administration, especially local government administration has no macroeconomic instruments, it may only use various stimulants for foreign investors. It also does not have good financial instruments and may only use reductions and exemption from local taxes, in particular land and property taxes. One of more important determinants of location depending, to large extent, on actions of local governments constitutes well developed infrastructure, mostly roads but also the one connected with availing lands to entrepreneurs for investing i.e. facilitating land with sewage system, water supply system, gas and energy system (e.g. special economic zones). National, regional and local authorities should actively create a proper investment climate, favourable to external investments (i.e. foreign, national, regional) and the one directed at retaining enterprises that presently function. The actions which may influence the improvement of the investment climate depend on political determinants and economic situation of a given country or region, on the progress directed at the improvement of the investment climate in the future, the results of liberalization of the policy regarding foreign direct investments and previous activity of promotion . The investment climate constitutes, apart from natural (material, market, cost) advantages of a given area, the integral component of the combination of location determinants influencing the choice of a given country, region or the place for direct location within a region. As for practice, in the conditions of small differences among countries and regions applying for foreign direct investments (FDI), the subjective opinion of investors regarding the location of a future investment plays a crucial role.
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