Republic of Polandby Souvik Biswas, Sagar Churi, Christopher Pappas, and Ruth WhiteMaster of Business Administration 6100Dr. James M. McFillenInternational Business and ManagementTuesday, July 28, 2009

AgendaGeographic InformationPolitical, Legal, and Economic SystemsFinancial InformationEconomic DataTrade InformationPopulation and Population CharacteristicsCulture and Key Business Practices

Geographic Information: LocationLocation: Central EuropeCapital: Warsaw is also the biggest city and is located in East-Central PolandBorders: West: GermanySouth: Czech Republic and Slovakia East: Ukraine and Belarus North: Lithuania, Russia, Baltic Sea

Geographic Information: Surface AreaTotal Area: 121 sq miles, 3% of which is covered by water (USA is 3,8 sq m)Coastline extends up to 305 milesPoland’s territory accounts 1.4% of Europe’s total surface areaPoland is lightly smaller than New Mexico520 times bigger than SingaporeYou can fly from Warsaw to Berlin (224 sq m) in just 1.2 hours, to Rome (710 sq m) in 2.2 hours; to Paris (622 sq m) in 2.5 hours

Geographic Information: Significant Geographic Characteristics and FeaturesUse of Land:46% of land is used for arable purposes1.12% of land is used for permanent crops53% of land is used for other purposesAgricultural products: grain, wheat, sugar beets, potatoes, tobacco, fruits, etc. The total gross output of agriculture products for 2007 was 1,739 million dollars.

Geographic Information: Significant Geographic Characteristics and FeaturesClimate:In the North and West the climate is maritimeIn the South and East the climate is continentalWinters can be mild or coldSummers can be cool and rainy or hot and dryTemperatures in summer lie between 69°F and 90°FTemperatures in winter lie between -4°F and 30°F

Geographic Information: Natural ResourcesNatural Resources: Poland is rich in minerals such as amber, hard and brown coal, zinc, lead, silver, sulphur, rock salt, etc; oil and natural gas

Strategic Location: Invest in the heart of EuropePoland’s location in the centre of Europe makes the country a perfect investment destination for enterprises targeting both Western and Easter part of EuropePoland is a country where the main trade and transport routs leading from the North to the South and from the West to the East of the continent intersectCommunication hubs have become centers where various types of means of transport interlaceThe Polish Government Program for National Roads Construction for the years 2008-2012 envisages construction of around 240 sq miles of motorwaysThe Warsaw Frederic Chopin Airport belongs to the most important international airports on the continent. In 2007 the airport attended 9 million passengersThe ports of Szczecin-Swinoujscie and Gdynia have seized new market opportunities and catering. In 2003 Poland’s two largest ports handled 21.6 and 17.7 tons of cargo, respectively

Poland’s location in the centre of Europe makes the country a perfect investment destination for enterprises targeting both Western and Easter part of Europe

Poland is a country where the main trade and transport routs leading from the North to the South and from the West to the East of the continent intersect

Communication hubs have become centers where various types of means of transport interlace

The Polish Government Program for National Roads Construction for the years 2008-2012 envisages construction of around 240 sq miles of motorways

The Warsaw Frederic Chopin Airport belongs to the most important international airports on the continent. In 2007 the airport attended 9 million passengers

The ports of Szczecin-Swinoujscie and Gdynia have seized new market opportunities and catering. In 2003 Poland’s two largest ports handled 21.6 and 17.7 tons of cargo, respectively

Poland: Population Information for 2008Population : 38.5 millionLanguage: PolishReligions: 89.8% Roman Catholics, 1.3% Eastern OrthodoxEthnic Groups: 96.7% Polish, 0.4% Germans, 0.1% Belarusian, 0.1% Ukrainian, 2.7% otherImmigrants: 20 thousand. Most of them are males between the age of 18 and 24

Poland: Population Information for 2008 Cont.Work Force: 17.2 million. 29% work in industry and construction, 16% in agriculture, 54% in serviceUnemployment rate: 12.8%Urban population: 62%Population density: 122 people per sq km

Poland: Population Information for 2008 Cont.

Poland: Population Information Cont.

Human CapitalHighly qualified workers and well-educated specialist are easily available. Loyal and hard working peoplePoland has almost 500 academic centers with almost 100,000 specialists; half of the number holds a PhD degreeThe high standards of Polish educational system are reflected in a number of scientific achievements such as the first extra-solar planetary system and the production of blue laserThe quality of Polish scientific and technical thought is confirmed by the fact that the 500 largest Multinational organizations tend to locate their R&D centers in Poland (USA, Canada, UK, Germany, France, Italy, Switzerland, Netherlands and Poland)Poland has almost 2 million academic students, half of them arebetween 19 and 24 years old50% of the population is under 35 years oldPolish students have an excellent knowledge of foreign languages. Over half of them speak fluent English and the vast majority of the rest do have a basic understanding of the language. The second most commonly studies language is German, followed by Russian, French and Spanish

Highly qualified workers and well-educated specialist are easily available. Loyal and hard working people

Poland has almost 500 academic centers with almost 100,000 specialists; half of the number holds a PhD degree

The high standards of Polish educational system are reflected in a number of scientific achievements such as the first extra-solar planetary system and the production of blue laser

The quality of Polish scientific and technical thought is confirmed by the fact that the 500 largest Multinational organizations tend to locate their R&D centers in Poland (USA, Canada, UK, Germany, France, Italy, Switzerland, Netherlands and Poland)

Poland has almost 2 million academic students, half of them arebetween 19 and 24 years old

50% of the population is under 35 years old

Polish students have an excellent knowledge of foreign languages. Over half of them speak fluent English and the vast majority of the rest do have a basic understanding of the language. The second most commonly studies language is German, followed by Russian, French and Spanish

Political SystemPolitical system: RepublicThe President is elected by popular vote for a five-year term. The 460 members of the lower house of parliament and the 100 members of the senate are directly elected by a system of proportional representation to serve four-year terms.

Legal SystemBased on a mixture of Continental (Napoleonic) civil law and holdover Communist legal theory.The Supreme Court: Reviews the decisions of all lower courts; highest authority.Lower Courts: Concentrate on minor, routine offenses.The Supreme Administrative Court: Review and standardize administrative regulations enforced by government agencies.The Constitutional Tribunal: Adjudicate the constitutionality of laws and regulations.The State Tribunal: Passes judgment on the guilt or innocence of the highest office holders in the land accused of violating the constitution and laws.The Prosecutor General: Safeguard law and order and ensure prosecution of crimes.The Commissioner for Citizens' Rights: safeguard individual civil rights and liberties

Economic Freedom© http://www.heritage.org/Index/Ranking.aspx

Corruption and Bribery IndexPoland’s Corruption Perception Index (CPI)© Transparency International all rights reserved.

Religions & Ethnic groupsPoland has been one of the world's most strongly Roman Catholic countries.Over 96% of Poles are nominally Roman Catholics.Ethnic groups

EconomyPoland is considered to have one of the healthiest economies of the post-communist countriesPoland is a successful example of the transition from a centrally planned economy to a primarily capitalistic market economyPoland is likely to join the European Exchange Rate Mechanism (ERM) in 2009 and adopt the euro in 2012 or 2013

Gross Domestic Product (GDP)GDP growth of Poland is three times that of Western Europe

GDP growth of Poland is three times that of Western Europe

GDP – Composition by Sector

Currency On January 1, 1995 Polish Zloty (international symbol PLZ) was denominated by the ratio 10,000:1 and new Polish Zloty (PLN) was introduced.

Exchange RateNote: Zlotych is the plural form of Zloty

Inflation Rate

Stock of Foreign Direct InvestmentPoland is:• Ranked 1st in planned investments in Europe • Ranked 2nd Europe in FDI Confidence Index • Ranked 5th in top 10 global investment destinations

Investment at Poland

FDI Confidence Index

Top Global Investment Destinations

Most Preferred Sites by Executives

Deficiencies in Business EnvironmentInefficient commercial court systemRigid labor codeBureaucratic red tapePersistent low-level corruption

Transportation

Transnational IssuesAs a member state that forms part of the EU's external border, Poland has implemented the strict Schengen border rules to restrict illegal immigration and trade along its eastern borders with Belarus and UkraineDespite diligent counternarcotics measures and international information sharing on cross-border crimes, Poland is a major illicit producer of synthetic drugs for the international market; minor transshipment point for Southwest Asian heroin and Latin American cocaine to Western Europe

Trade InformationMain form of Business: Services 65.5%, Industry 31.7%, Agriculture 2.8%Exports $92.71 billion USD: Manufactured good and chemicals 57%, machinery and equipment 21%, food 12%, and mineral fuels 7% Imports $95.67 billion USD: Manufactured goods and chemicals 43%, machinery and equipment 36%, food 8%, and mineral fuels 9%

Trade InformationMembership in Trade Organizations: Europe Union 2004, World Trade Organization, United NationsTaxes: Similar to US and EU – personal/corporate income, local/excise duty, Value Added Tax – higher than most at average of 22%, Corporate Income Tax – lower than most at average of 15%No industry is closed to private enterpriseAll companies incorporated in Poland are equal – regardless of ownership

Trade InformationForeign Direct Investment: encouraged by the countryUSA = higher in Krakow than any other country in 2005Multiple countries invested such as Germany, USA, UK, France and Israel

Trade Information

Culture and Key Business Practices

Questions?

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