There are in fact so many people that are involved in the development of one's economy and one of which is the state. In the development of the economy, the issue about the involvement of the state is as a matter of fact an issue that is very complex. As a matter of fact, the economic development is because of the investment and the entry of the foreigners.
Another reason as to why the state helps in the development of the economy, including the site location, is because it is the national economy's architect. This basically means that the economic activities are boosted because of the implementation of different regulations and policies of the government. An example of one of the many policies is none other than the industrial policies. One hundred percent ownership of the Transnational Companies that have lived in the country and have been exempted in tax for years is actually an example of this kind of policy. It is in fact undeniable that trade policies are very common. The act of providing generous export subsidies to boost consumption of foreign goods or minimizing export and import tariffs is actually some of the things that are included here. There is now an increase in the conduction of cross-border trade because of this. And then there is another effect as well and that is the increase in the flow of the capital, services and goods which then puts the economic activity at a higher stage.
What you have just read in the previous sentence as a matter of fact is that it is manifested in majority of the countries. Export subsidies were in fact being rewarded to those that decided to involve themselves in trading. In effect the exports were boosted and it also lowered the costs which in the end attracted foreigners to their local goods.
Based from the strategic development group, the state is also a provider for the reason that it provides the needed infrastructure that is very conducive in terms of attracting the maximum Foreign Direct Investment through TNCs. What is included in this are namely the following: Export Processing Zones, set up of business, science and technology parks and Special Economic Zones.
When it comes to the development of the economy, the state plays an important role and they have just been discussed partially. There have been states that have been able to implement policies that are somehow the same with others in order to be able to attract investments and so this basically means that they have little differences. As a matter of fact, an example of this is the rules that has something to do with the pollution levels. The factories are those that are mostly following this kind of rule. Toxic chemicals usually come from them and this is why they have been implemented.