International Business: Poland Presentation


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Why to Invest in Poland?

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International Business: Poland Presentation

  1. 1. Republic of Poland<br />by Souvik Biswas, Sagar Churi, Christopher Pappas, and Ruth White<br />Master of Business Administration 6100<br />Dr. James M. McFillen<br />International Business and Management<br />Tuesday, July 28, 2009<br />
  2. 2. Agenda<br />Geographic Information<br />Political, Legal, and Economic Systems<br />Financial Information<br />Economic Data<br />Trade Information<br />Population and Population Characteristics<br />Culture and Key Business Practices<br />
  3. 3. Geographic Information: Location<br />Location: Central Europe<br />Capital: Warsaw is also the biggest city and is located in East-Central Poland<br />Borders: <br />West: Germany<br />South: Czech Republic and Slovakia <br />East: Ukraine and Belarus <br />North: Lithuania, Russia, Baltic Sea<br />
  4. 4. Geographic Information: Surface Area<br />Total Area: <br />121 sq miles, 3% of which is covered by water (USA is 3,8 sq m)<br />Coastline extends up to 305 miles<br />Poland’s territory accounts 1.4% of Europe’s total surface area<br />Poland is lightly smaller than New Mexico<br />520 times bigger than Singapore<br />You 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<br />
  5. 5. Geographic Information: Significant Geographic Characteristics and Features<br />Use of Land:<br />46% of land is used for arable purposes<br />1.12% of land is used for permanent crops<br />53% of land is used for other purposes<br />Agricultural products: grain, wheat, sugar beets, potatoes, tobacco, fruits, etc. The total gross output of agriculture products for 2007 was 1,739 million dollars.<br />
  6. 6.
  7. 7. Geographic Information: Significant Geographic Characteristics and Features<br />Climate:<br />In the North and West the climate is maritime<br />In the South and East the climate is continental<br />Winters can be mild or cold<br />Summers can be cool and rainy or hot and dry<br />Temperatures in summer lie between 69°F and 90°F<br />Temperatures in winter lie between -4°F and 30°F<br />
  8. 8. Geographic Information: Natural Resources<br />Natural Resources: Poland is rich in minerals such as amber, hard and brown coal, zinc, lead, silver, sulphur, rock salt, etc; oil and natural gas<br />
  9. 9. Strategic Location: Invest in the heart of Europe<br /><ul><li>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
  10. 10. 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
  11. 11. Communication hubs have become centers where various types of means of transport interlace
  12. 12. The Polish Government Program for National Roads Construction for the years 2008-2012 envisages construction of around 240 sq miles of motorways
  13. 13. The Warsaw Frederic Chopin Airport belongs to the most important international airports on the continent. In 2007 the airport attended 9 million passengers
  14. 14. 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</li></li></ul><li>Poland: Population Information for 2008<br />Population : 38.5 million<br />Language: Polish<br />Religions: 89.8% Roman Catholics, 1.3% Eastern Orthodox<br />Ethnic Groups: 96.7% Polish, 0.4% Germans, 0.1% Belarusian, 0.1% Ukrainian, 2.7% other<br />Immigrants: 20 thousand. Most of them are males between the age of 18 and 24<br />
  15. 15. Poland: Population Information for 2008 Cont.<br />Work Force: 17.2 million. 29% work in industry and construction, 16% in agriculture, 54% in service<br />Unemployment rate: 12.8%<br />Urban population: 62%<br />Population density: 122 people per sq km <br />
  16. 16. Poland: Population Information for 2008 Cont.<br />
  17. 17. Poland: Population Information Cont.<br />
  18. 18. Human Capital<br /><ul><li>Highly qualified workers and well-educated specialist are easily available. Loyal and hard working people
  19. 19. Poland has almost 500 academic centers with almost 100,000 specialists; half of the number holds a PhD degree
  20. 20. 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
  21. 21. 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)
  22. 22. Poland has almost 2 million academic students, half of them arebetween 19 and 24 years old
  23. 23. 50% of the population is under 35 years old
  24. 24. 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</li></li></ul><li>Political System<br />Political system: Republic<br />The 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.<br />
  25. 25. Legal System<br />Based on a mixture of Continental (Napoleonic) civil law and holdover Communist legal theory.<br />The Supreme Court: Reviews the decisions of all lower courts; highest authority.<br />Lower Courts: Concentrate on minor, routine offenses.<br />The Supreme Administrative Court: Review and standardize administrative regulations enforced by government agencies.<br />The Constitutional Tribunal: Adjudicate the constitutionality of laws and regulations.<br />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.<br />The Prosecutor General: Safeguard law and order and ensure prosecution of crimes.<br />The Commissioner for Citizens&apos; Rights: safeguard individual civil rights and liberties<br />
  26. 26. Economic Freedom<br />©<br />
  27. 27. Corruption and Bribery Index<br />Poland’s Corruption Perception Index (CPI)<br />© Transparency International all rights reserved.<br />
  28. 28. Religions & Ethnic groups<br />Poland has been one of the world&apos;s most strongly Roman Catholic countries.<br />Over 96% of Poles are nominally Roman Catholics.<br />Ethnic groups<br />
  29. 29. Economy<br />Poland is considered to have one of the healthiest economies of the post-communist countries<br />Poland is a successful example of the transition from a centrally planned economy to a primarily capitalistic market economy<br />Poland is likely to join the European Exchange Rate Mechanism (ERM) in 2009 and adopt the euro in 2012 or 2013<br />
  30. 30. Gross Domestic Product (GDP)<br /><ul><li>GDP growth of Poland is three times that of Western Europe</li></li></ul><li>GDP – Composition by Sector<br />
  31. 31. Currency<br /> On January 1, 1995 Polish Zloty (international symbol PLZ) was denominated by the ratio 10,000:1 and new Polish Zloty (PLN) was introduced.<br />
  32. 32. Exchange Rate<br />Note: Zlotych is the plural form of Zloty<br />
  33. 33. Inflation Rate<br />
  34. 34. Stock of Foreign Direct Investment<br />Poland is:<br />• Ranked 1st in planned investments in Europe <br />• Ranked 2nd Europe in FDI Confidence Index <br />• Ranked 5th in top 10 global investment destinations <br />
  35. 35. Investment at Poland<br />
  36. 36. FDI Confidence Index<br />
  37. 37. Top Global Investment Destinations<br />
  38. 38. Most Preferred Sites by Executives<br />
  39. 39. Deficiencies in Business Environment<br />Inefficient commercial court system<br />Rigid labor code<br />Bureaucratic red tape<br />Persistent low-level corruption<br />
  40. 40. Transportation<br />
  41. 41. Transnational Issues<br />As a member state that forms part of the EU&apos;s external border, Poland has implemented the strict Schengen border rules to restrict illegal immigration and trade along its eastern borders with Belarus and Ukraine<br />Despite 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<br />
  42. 42. Trade Information<br />Main form of Business: Services 65.5%, Industry 31.7%, Agriculture 2.8%<br />Exports $92.71 billion USD: Manufactured good and chemicals 57%, machinery and equipment 21%, food 12%, and mineral fuels 7% <br />Imports $95.67 billion USD: Manufactured goods and chemicals 43%, machinery and equipment 36%, food 8%, and mineral fuels 9%<br />
  43. 43. Trade Information<br />Membership in Trade Organizations: Europe Union 2004, World Trade Organization, United Nations<br />Taxes: 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%<br />No industry is closed to private enterprise<br />All companies incorporated in Poland are equal – regardless of ownership<br />
  44. 44. Trade Information<br />Foreign Direct Investment: encouraged by the country<br />USA = higher in Krakow than any other country in 2005<br />Multiple countries invested such as Germany, USA, UK, France and Israel<br />
  45. 45. Trade Information<br />
  46. 46. Culture and Key Business Practices<br />
  47. 47.
  48. 48.
  49. 49. Questions<br />?<br />
  50. 50. Thank you!<br />