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(d) Governments 
can 
subsidise exports, or promote them 
in other ways (eg by trade missions, export 
credit insurance and so forth). 
(e) 
Governments can also encourage 
inward investment 
by foreign countries.. 
(f) 
Regional policy 
is an example of small scale economic planning. 
(i) 
Tax incentives or grants for investing in certain areas 
(ii) 
Relaxing or enforcing town and county planning restrictions 
(iii) Developing 
new towns 
to reduce population pressure in major conurbations, although this 
policy is perhaps a thing of the past 
(iv) 
Promotion of infrastructure developments (eg roads, rail, airports) 
The Government also attempts to influence businesses by persuasion and encouraging certain actions. 
8.4 State influences over organisations 
Government influences are outlined in the diagram below. 
Market demand
Industry policy
Social policy
Foreign policy
Environment and
infrastructure
policy
Overall economic
policy
Cost of finance
Taxation
Protection vs Free Trade
Grants, incentives, sponsorship
Entry barriers, capacity
Distribution
Trade promotion, export credits
EU and GATT obligations
Workplace regulation,
employment law
Labour supply,
skills, education
Export promotion to allies,
aid recipients
Regulation (eg investor
protection, company law)
G
O
V
E
R
N
M
E
N
T
O
R
G
A
N
I
S
A
T
I
O
N
8.5 Government influence over commercial decisions 
Decision 
Comment 
Output capacity
Grants or tax incentives to invest