Introduction
This report is going to be examining aspects of the Polish economy and its attractiveness for inward investment. I will be using a PEST analysis along with examples to illustrate why business is moving into Poland and the benefits they receive.
Poland joined the European Union (EU) in 2004 after going through transition from communism to a market economy. It has several major industries including agriculture, heavy industry such as coal mining and work with iron and steel along with the production of other consumer goods.
PEST
Political
Poland is a parliamentary republic consisting of two houses, the Sejm or lower house containing 460 members and the Senate or Upper House containing 100 members. There are several things the Polish government is doing in order to improve not just the Polish economy but also the quality of life for its citizens. Some of the areas the Polish are behind most other EU member countries are social services such as health care and education as well as transportation, including roads and railways. They do however realize these shortfalls and there are plans both in place and in the works to help alleviate these problems.
One of the ways the government is looking to change some of the problems facing the public sector is to build a partnership between the private and public where the private sector builds large scale assets such as schools and hospitals in which they lease back to the public sector for a period of up to 30 years. This has proven to work in the UK and Poland has several major projects ranging from housing to railways and hospitals it is interested in reforming in this way.
One of the benefits the Polish government issued since joining the EU to encourage foreign investment is to offer benefits such as low corporate tax rates as low as 19% and in some cases in certain Special Economic Zones income tax exemption and real estate tax exemption.
Economic
Poland’s economy has been consistently growing since its induction into the EU and it is considered one of the strongest economies in Eastern Europe. In 2007, Poland saw a rapid annual growth rate of 6.5% with an industry growth rate at 10%. According to the National Bank of Poland, this growth rate of the GPD is due to investment and consumption.
The European Union has been helped economically ever since World War II. Right after World War II’s end, Europe was struggling to hold on. The countries of the modern-day European Union thought it would be a good idea to come together and help each others struggling economy. To this day, this decision has had a very positive outcome on the EU’s economy. As shown in Diagram 1, the European Union combined together has the world’s highest GDP at 18.3 Trillion USD as compared to the United States’ 17.4 Trillion USD GDP and China’s 10.4 Trillion USD GDP. The idea
Municipal control or an alternative delivery method? This is the question that has intrigued all levels of local government and created intense debates between taxpayers across municipalities. The services that municipalities provide are often vital to the existence of a local area. The issues of accountability, cost savings, quality of service and democracy often arise when choosing the best options to deliver services to a municipal area. In recent years the concepts of privatization, alternative service delivery and public-private partnerships are often promoted as ways cut down on overburdened annual city budgets and promote a higher quality of service to citizens. Municipalities have historically always provided basic services such as fire protection, water purification/treatment and recreational facilities. However, would private companies or another municipality be able to better deliver the same services more efficiently or at a lower cost? The city or town often provides a political grass roots approach to most local problems. Municipalities are better positioned and have a wider scope to provide services to their constituents in order to ensure quality of service that does not erode accountability and transparency, or drive the municipality deeper into debt.
With a high GDP of 547 billion dollars, Poland needed help. Fortunately, said in Document C, Germany helped Poland in many ways. Now, in the past two decades, Poland reached 62% of the level of the comfortable a country at the core of Europe(Document C). To conclude, if you join the EU in any conditions, your GDP may grow to a higher rank, but with challenging circumstances to
The most significant benefit is the access they have to the single market as this has managed to benefit quite Access to the single market is aiding this inward investment.
Business in US and The Czech Republic The purpose of this document is to present solutions and recommendations for Steve Kafka, an American of Czech origin and a franchisor for Chicago Style Pizza, who has decided to expand his business into the Czech Republic. This document focuses on the major differences and incompatibilities between the U.S. and Czech cultures. The script also shed lights on the business risks and mitigation on Czech culture. The paper also talks about the comparative advantages that exist in the Czech Republic and Hofstedes four primary dimensions for Steve to evaluate the Czech business environment.
The country of Germany is one of the strongest economies in Europe as a whole. A brief history and overall status of this country is going to be explained giving examples and demographics. Along with my understanding of the information, I will try to help you understand the importance of this country’s overall macroeconomic stance that contributes to today’s wealth of the European Union.
satisfied and in doing so, they created a new and improved Poland. Previous to the formation of
Poland is a country located in Central Europe. The official capitol is Warsaw, and the major language spoken is Polish, including Russian, German, Byelorussian, and Kashubian. Poland has been known for being a strong, diverse country struggling for independence, and still remaining a strong nation standing up for its right and existence. Also known for being a wondrous country with a magnificent land, culture, and history, Poland has rich background and is definitely a country worth learning about.
...capital, total foreign investment amounting to EUR 37.7 billion” (FRD). This gives an insight of a number of foreign investors invested into Romania. “In 2013, investment by businesses and households accounted for 16.7% of the EU-28’s GDP, whereas the equivalent figure for public sector investment was 3.0%” (National Accounts). This shows some of the minimal percentiles in contribution to their GDP.
Greece has emerged as one of the fastest growing economies in the EU since the mid-1990s when it has recorded strong GDP growth, significantly outperforming EU averages. Greece was one of the fastest growing countries in the Eurozone with an annual growth rate of 4.3 % from about 2000 to 2007 compared to Eurozone average of 3.1...
To begin with, Poland trade policy opening up in the early 1990s was the most important step for Poland economy transformation. Poland was able to make zloty (which means golden) is the official currency of Poland to become convertible in the international currency market, which in-turn made all-domestic prices to become released from the administrative control. By participating in the international trade political economy, Poland was able to increase their import value to over seven percent yearly. The change was made possible because Poland had tariffs that was unbound. Poland created a (FT...
In conclusion, Solidarity was a movement that helped change the course of two continents. It was a movement by the people and for the people. The iron grip of communism was destroyed, and democracy was born throughout Eastern Europe. Solidarity will always be remembered as the revolution that succeeded where so many others had failed. Today in Polish politics Solidarity's role is somewhat limited, and it has reverted back more toward the role of a more traditional trade union than a political party. The summer of 2005 marked the 25th anniversary of the Solidarity movement, and was a time to remember the hardships of its humble beginnings and to celebrate the changes those hardships inspired across the continent” (Local Life 1). Many of those changes are still being felt today across Eastern Europe.
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...
With one of the highest GDP per capita of around $80,000, you could imagine the amount of luxurious items owned by individuals of Luxembourg. They have a stable market system governed lightly with freedom of interest and business. With steel accounting for most of the markets exports, rubber, plastics and agriculture. Traveler’s come in every year to experience the vast banking and economical services used by the government of Luxembourg, which is another reason for the big amount of income by Luxembourg. The country is a small populated area but as you can tell has a well fluctuated economy with many things to offer for foreigners looking for business and partners in trade and
Where goods are concerned, there has been a great deal of integration as the EU has managed to remove some of the technical, fiscal and legal barriers previously restricting trade of goods. Indeed, according to Eurostat, by 2012, intra-EU trade in manufactured goods represented approximately 22% of Gross Domestic Product. This figure is put into perspective when analysing the relatively slow growth in the services sectors. This is despite the fact services account for 70% of economic activity within the EU. According to Eurostat, intra EU exports of services accounted for only roughly 6.5% of GDP. The capital market has also not been completely integrated although there has been progress. Cost of borrowing is still very high especially for small and medium sized enterprises. Finally, the area of labour mobility has been of great interest. The Schengen agreement, which guarantees the free movement of people within the Schengen area has helped with the mobility of labour. However, there are still certain challenges hindering the full integration of