Poland over the next fifteen years
In north-central Europe there lies a beautiful yet simple country, Poland. Throughout Poland’s history it faced many hurdles becoming an independent state. In the beginning of its development Poland was not a very strong country which provided great opportunities for power-thirsty countries. Unfortunately, this allowed “Russia, Prussia, and Austria to carry out a first partition of the country in 1772, a second in 1792, and a third in 1795. For more than a century thereafter, there was no Polish state, just Austrian, Prussian, and Russian sectors” (Poland). However, the Poles never truly gave up their independence and they regained power in the early part of the nineteenth century. Just as Poland was starting to get back on its feet Hitler invaded and he devastated the country killing its Jewish people and taking over the government. Once the terrorizing reign of Hitler ended “A new constitution in 1952 made Poland a “people's democracy” of the Soviet type. In 1955, Poland became a member of the Warsaw Treaty Organization, with its foreign policy identical to that of the USSR” (Poland). In the years after becoming a people’s democracy there was much political conflict and problems ensued with the attempt to change Poland’s economy to a market economy. Yet Poland managed to pull through and “By the early 1990s, more than half the Polish economy was in private ownership, while more than four-fifths of Polish shops were privately owned” (Davies). However now that Poland has gotten on its feet it is still a bit wobbly and faces a new challenge, growth. Despite a developing well-educated workforce and expanding economy, declining population and resulting labor shortage could derail Pola...
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Kaminski, Bartlomiej, and Beata Smarzynska. "Foreign Direct Investment and Integration into Global Production and Distribution Networks: The Case of Poland: Policy Research Working Papers." Foreign Direct Investment and Integration into Global Production and Distribution Networks: The Case of Poland: Policy Research Working Papers. The World Bank Group, 2001. Web. 11 Nov. 2013.
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I found this article "Foreign direct investment: Companies rush in with the cash" on the financial times website (www.FT.com) published December 11, 2002 written by John Thornhill. The reason for choosing this article is my personal interest in the Chinese economy and its attractiveness to the foreign investors. Apart from the foreign direct investment this topic has also helped me in understanding the impact of Chinese economy on the global market.
The Republic of Poland is a member state of the European Union. Poland is much less established than most Western European countries. The nation is considered to be a developed country, but at the very minimal level a nation can be to be considered “developed.” According to the governmental restructuring of 1998, the country is divided into 16 provinces. These provinces are divided into “poviats”, and then further separated into the principle administrative units “gminas”.
Poland is a country currently wanting to become a member of the EC. It has just migrated from a communist regime and had its first democratic elections. Inflation rate is the highest it has ever been. The...
Over two-hundred years ago, Europe was a vastly different place. To the modern eye, the Europe of the 18th Century would be unrecognizable compared to its current state. However, the road to this new Europe has been not been all kicks and giggles, but a rather rough and tumble journey. Due to the introduction of new ways of thinking, the occurrences of multiple revolutions, changes in government style and leadership, which led to the creation and extinction of numerous countries as well as rearrangement of boundary lines, and the formation of a European Union, Europe today is hardly comparable to the Europe in our history books. The transformation that Europe experienced spanned a period of more than two-hundred years and made it into the more unified 21st Century powerhouse that we know today.
Political and legal considerations were given first priority in this analysis with primary emphasis given to whether a country's legal or political system prohibits or impedes foreign investment. If a country's political or legal system discouraged or prevented foreign investment, that country was disqualified from further consideration. Factors considered when assessing the political and legal environment:
OECD Publication. 2002. Foreign Direct Investment for Development. Available at: http://www.oecd.org/investment/investmentfordevelopment/1959815.pdf [Accessed 4 March 2014].
By definition foreign direct investment is the acquisition of tangible assets such as machinery, land and factories; this type of investment are often between two companies- usually multinationals from different countries. FDI is one of the benefits of globalisation as it has a direct impact on aggregate demand having a follow on effect on technology, job opportunities and increased intellectual property owned by countries. In this essay I will discuss some of the factors that affect a country’s disposition to gaining foreign direct investment.
Foreign Direct Investment is a major source of capital for most developed and developing countries. It is usually difficult for countries to generate capital through domestic savings and based on their domestic strengths and capacities alone. It is even more difficult to import up-to date technology from abroad taking into consideration issues of transportation and the technical expertise required for operation,
The enlargement of the European Union (EU) in 2004 and 2007 has been termed as the largest single expansion of the EU with a total of 12 new member states – bringing the number of members to 27 – and more than 77 million citizens joining the Commission (Murphy 2006, Neueder 2003, Ross 2011). A majority of the new member states in this enlargement are from the eastern part of the continent and were countries that had just emerged from communist economies (EC 2009, Ross 2011), although overall, the enlargement also saw new member states from very different economic, social and political compared to that of the old member states (EC 2009, Ross 2011). This enlargement was also a historical significance in European history, for it saw the reunification of Europe since the Cold War in a world of increasing globalization (EC 2009, Mulle et al. 2013, Ross 2011). For that, overall, this enlargement is considered by many to have been a great success for the EU and its citizens but it is not without its problems and challenges (EC 2009, Mulle et al. 2013, Ross 2011). This essay will thus examine the impact of the 2004/2007 enlargements from two perspectives: firstly, the impact of the enlargements on the EU as a whole, and thereafter, how the enlargements have affected the new member states that were acceded during the 2004/2007 periods. Included in the essay will be the extent of their integration into the EU and how being a part of the Commission has contributed to their development as nation states. Following that, this essay will then evaluate the overall success of the enlargement process and whether the EU or the new member states have both benefited from the accessions or whether the enlargement has only proven advantageous to one th...
The main concept discussed in this essay is foreign direct investment. FDI is, according to the OECD, “a category of cross-border investment made by a resident entity in one economy (the direct investor) with the objective of establishing a lasting interest in an enterprise (the direct investment enterprise) that is resident in an economy other than that of the direct investor.” Firms invest in foreign economies in order to exploit their particular advantages and FDI is the preferred process, as opposed to licensing or agreements and exports. The advantages that firms often possess are patented technology, managerial skills, marketing skills and brand names.
Figure 1 shows the recent trends in FDI inflows of some developing countries. According to the UNCTAD report of 2011 China has the highest FDI inflows among all the developing countries like Hong Kong, Russia, Singapore, Brazil and India; because China has introduced FDI over 20 years ago and has progressively pursued foreign investment while adjusting its FDI policies. Since 1993, China has attracted the largest amount of FDI of all developing countries while increasing its levels of both exports and technological advancement
FDI is typically regarded as a mode of cross-border inter-firm collaboration which connects with important equity stake and efficient power in managerial decision making in international enterprises (de Mello, 1999). FDI is also an external factor which boost Thailand’s economic growth through employment, transfer of technology and knowledge and relocating manufacturing facility. However, there is increasingly movement of production base into China and India instead of Thailand. As a result, the Thai
Thus, we have demonstrated that profit-maximization and FDI made in natural resources are genuine challenges of assessing the impact of FDI on economic development. In the cases we mentioned, thanks to MNCs, FDIs don’t lead to economic development and on the contrary, they are a brake on growth. Now, it would be interesting to understand which challenges host countries are facing inside their own systems. This is the reason why we are going to study challenges such as political risks and terrorism, public investments and economic
Sukar, A., Ahmed, S., & Hassan, S. (n.d.). THE EFFECTS OF FOREIGN DIRECT INVESTMENT ON ECONOMIC GROWTH. Southwestern Economic Review.