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  1. 1. MACROECONOMICS PRESENTATION Presented by: Vishesh, Dheeraj Abhishek Rahul Aditi
  2. 2. Netherlands • Netherlands has been playing a special role in the European economy for many centuries. • It has a highly mechanised agricultural and dairy sector employs 4% of the labour force but provides large surpluses for the food-processing industry and for exports. • The Dutch rank third worldwide in value of agricultural exports, behind the United States and France, with exports earning $55 billion annually.
  3. 3. Why??? • The receptive international perspective, that the Dutch have long been know for, has turned their economy into one of the most accessible in the world. The Netherlands are in particular praised for its outward-looking business culture, its strategic location within Europe, its productive, skilled and multilingual workforce, and its sound macro-economic underpinnings. • Gateway to Europe - The Netherlands is an ideal location from which to penetrate markets throughout Europe, the Middle East, the Far East, Africa and beyond, by establishing operations here. • Business environment - Known for centuries as a nation of successful traders, the Dutch are internationally oriented by nature and know instinctively how to anticipate and fulfill the needs of a customer, no matter where he or she is based. • Superior logistics and technology infrastructure - The Port of Rotterdam is the worlds largest seaport, and Schiphol Airport is recognized as one of the major business hubs in Europe and has claimed over 100 international awards over the last couple of decades. The Netherlands is also classified as one of the most wired countries in the world, a dynamic force in electronic commerce, communications and outsourcing.
  4. 4. Why??? • • • • • • • • Netherlands Overall Rank: 4 Economic Integration: 23 Business Startup Cost: 33 Labor/Material Cost: 26 Transport Cost: 4 Less Tangible Costs: 5 Local Consumer Base: 22
  5. 5. Business opportunities in Netherlands • The Ministry of Economic Affairs promotes: • A competitive business climate. By abolishing unnecessary regulation and creating business-friendly fiscal policy. • Specific policy for innovation and enterprise to support businesses in areas where it is really necessary. Additional attention is paid to creating favourable conditions for key areas like chemicals, water and energy. • A world-class agri-food sector, that can be further strengthened through investment in innovation and sustainability. • Support for Dutch business abroad. Through economic diplomacy, for example, and assistance from embassies and consulates. • Clean, reliable energy. Clean energy is not only essential, it is also a prime export product. • Business practices that take nature and animal welfare into account. This creates a balance between economy and ecology.
  6. 6. Business opportunities in Netherlands • And while they manufacture a widely diverse array of food products, they’re all here for the same reasons. • As a manufacturing location, the Netherlands has an excellent selection of industrial space in key locations, a high standard of education and worker training, employees with an excellent work ethic and high productivity relative to other EU nations, plus high levels of automation and efficiency in production processes. • In short, you’ll find everything you need to make food products of better quality, faster and more costefficiently. • Taking this into consideration we like to go ahead with the dairy product CHEESE.
  7. 7. • Second largest agricultural exporter • One out of 10 workers has a job in the agricultural sector. The Netherlands is the second largest exporter of agricultural products in the world, after the US. With an average of 1,300 people per square mile, the Netherlands is one of the most densely populated countries in the world. • 7.3 million households • The Netherlands has 7.3 million households (2.2 people per household). On average, each family spends 14 percent of its income on food, beverages, and tobacco. Holland is also one of the world’s wealthiest nations, excelling at trade and high-quality financial and professional services. • Dairy is a cornerstone of the Dutch diet. A typical Dutch lunch consists of a sandwich with cheese and a fresh glass of milk. The daily average dairy consumption in the Netherlands is above that of other countries in the European Union. Our love of dairy stems from a long tradition, as the Dutch climate allowed pastures and cows to flourish and become a natural part of our lives. Today, dairy farming remains one of the most important elements of Dutch agriculture. • 1.5 million cows • Dairy farmers use about 60 percent of the agricultural land in the Netherlands. Milk alone accounts for 17 percent of the production value of Dutch agriculture. The Dutch dairy sector has 20,000 farms with nearly 1.5 million cows.
  8. 8. GDP in terms of business 2011 • GDP Netherlands - $ 836 B • GDP Turkey - $ 774B 2012 • GDP Turkey - $ 788B • GDP Netherlands - $ 770 B
  9. 9. Competitors in terms of production of cheese (Metric Tonnes) Italy 1,132,010 Netherlands 745,984 Poland 650,055
  10. 10. Per Capita Income the total national income divided by the number of people in the nation World Bank (2005– 2012) 12 Netherlands 43,198 2012 International Monetary Fund (2010–2012)[ 12 Netherlands 41,527 2012 Central Intelligence Agency (1993–2012) 14 Netherlands 42,900 2012 est.
  11. 11. Dutch working environment • Labour contracts in the Netherlands • In general, there are three labour options that differ on the employment period and dismissal procedures. As always, specific arrangements with the employer can be made. • › Temporary labour contracts • This type of contract has a pre-specified startand end date. In other words, there is no dismissal procedure at the end of the contract. • › Permanent labour contracts • In this case, there is no end date. The contract can be terminated by either the employer or the employee only under pre-determined conditions. • › Contracts with a recruitment agency • The recruitment agency is your legal employer even though you work for a specific organisation. Note that there is no arrangement for your protection against dismissal.
  12. 12. Employment Conditions • Remuneration packages • Salaries, holidays and bonuses are offered as a package in the Netherlands. Yet, what you should ask for and expect depends on your academic background and work experience. As an example: • › For an entry-level position with a Master's degree, the monthly salary varies between 2.300-2.500 euros gross. • › Every May there is a bonus equivalent to 8% of annual earnings. • › The number of vacation days is usually 24 per year. However, it is common for companies to offer more days off as an additional incentive. • › Some employers offer the possibility to "buy" extra days off. • › The nation's minimum wage can be changed every six months to adjust to inflation. • Minimum wage in the Netherlands • For an employee aged 23 or over in full employment, the gross minimum wage as of January 1, 2013 is 1.469,40 per month.
  13. 13. Political Environment • Netherlands is a constitutional monarchy with a parliamentary system of government • The parliament is bicameral • The upper chamber is the senate • The lower chamber is the house • The executive branch is formed by the council of ministers headed by Prime Minister. • The council of minister is appointed and dismissed by the monarch.
  14. 14. FDI • Around 6,300 foreign companies have established 8,800 operations, including the likes of Coca-Cola, BASF, Cisco Systems, Microsoft, Nike, Sabic, Siemens and Yakult. • - The Netherlands is the eighth -largest recipient of FDI in the world (2010). Foreign companies made inward direct investments worth 590 billion US dollars (445 billion euros). Foreign investors provide 15% of Dutch employment. • The legal system is fair and transparent and well equipped to deal with business, trade, taxation and patent issues. There are specialized courts for dealing with criminal and administrative issues, as well as with tax law, planning law, environmental law and trade and commerce.
  15. 15. FDI • • • • • The relevant factors include a corporate income tax rate of 20 % on the first 200,000 euros, and 25.5 % for taxable profits exceeding 200,000 euros, which is well below the EU national average. · Companies can benefit from an effective tax rate of only 5% for R&D income from self-developed patented intangible assets and also from selfdeveloped unpatented intangible assets which qualify for the so-called WBSO. · The Dutch ruling practice, which provides clarity and certainty on tax assessments in advance, can be obtained on future transactions, investments or corporate structures. · There is also a broad tax treaty network. The Netherlands has signed treaties with more than 80 countries that ensure the avoidance of double taxation on income and capital. This reduces withholding taxes on dividends, interests and royalties (for interest and royalties, in some cases, taxes are reduced to 0 %). · Investors can benefit from a 30% tax break for highly qualified foreign employees
  16. 16. FII • The Netherlands Authority for the Financial Markets is the body responsible for regulating behaviour on the financial markets in the Netherlands. This includes regulating the behaviour of all parties involved with the savings, loans, investment and insurance markets. It includes regulating all organisations that provide financial products and those that issue products, including stock exchanges. • The AFM has the following three aims: • making the financial markets more accessible • promoting the smooth operation of the financial markets • promoting confidence in the financial markets. • The public, the business sector and the government all depend on the financial products offered on the various markets for many of their activities. Confidence in the orderly and honest operation of these markets is therefore crucial. • The AFM works in conjunction with the De Nederlandsche Bank which is responsible for prudential regulation in the Netherlands.
  17. 17. FII • This guideline addresses the Bank’s policy with respect to two categories of foreign investment institutions, namely: • foreign investment institutions subject to adequate supervision by their home-country supervisory authority that apply for a license in the Netherlands Antilles, • foreign investment institutions not subject to adequate homecountry supervision that apply for a license in the Netherlands Antilles. • CONCLUSION • If a foreign investment institution considers itself eligible for a dispensation of the requirements as indicated in this policy guideline, it should, along with its request for a license, submit a copy of the following documents to the Investment Institutions Supervision Department of the Bank