On The Orientation Of Local Investment Policy And Decision-making

Since Reform and Open policy came into being, Trade and Investment has been the focus of governments at all levels and accumulated a large amount of experience and lessons at the same step with the development of market economy. Now, the activities exert the important influence on the regional economy. The research of location and decision-making on Trade and Investment's policy has got a great importance to promote the monocracy, regulate the activity better and make sure of healthy development of society and economy. The establishment of activity mechanism can solve the blindness and randomness happening in the activities, makes them more scientific and reasonable, and prevents all the bad fruits resulting from evil competences.The paper studies the background, characteristics and theories of trade and investment activities. The relationship occurring in the activities are summarized. The aim is to get the right view, make the comparative advantage clear and find the right location in the activities for the municipal and county governments. The paper uses the Simon' s decision theory and establishes the decision mechanisms of trade and investment for local governments based on the decision theories.