Paper 3 - INBU 4300 March 14, 2007 Business Climate The...

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INBU 4300 March 14, 2007 Business Climate The current climate in Poland is not one that would seem advantageous for direct foreign investment from a private source. Currently Poland’s GDP is 227 billion but the GDP per capita is only 5,943$ and it is only 40% of the average GDP for most countries in the EU. This may spawn problems when a company is looking to sell a non-essential item to the Polish public. When viewing from inside the Polish economy the climate does not appear to be struggling. The Polish are able to export 70% of all their goods to the EU, which they are trying to join, and they are receiving continued support from Western Europe, Canada and the US to expand and capitalize their economy. The current issues that are relevant to the case seem to exploit the few positives that can be found in their country for both Canadians and the Polish. The cost of labor in Poland is low, yet not as low as the surrounding countries. Polish people are able to make up for this apparent disadvantage by providing skilled factory workers who focus on quality, which is very important to the Canadian firm. On the Canadian side things seem to be looking just as positive. They have done research on their perspective market and have found promising factors that seem to influence the Canadians into pursuing this investment. The Canadians found that there is no competition in this niche, which is an attractive factor for any business trying to break into the market. An additional factor is that Poland is expanding and the demand for power tools will grow to meet this expansion. Opportunities In Approaching the Market
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This note was uploaded on 02/27/2008 for the course INBU 4300 taught by Professor Jennings,t during the Spring '07 term at Colorado.

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Paper 3 - INBU 4300 March 14, 2007 Business Climate The...

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