Foreign Investment in Czech Republic (Česká Republika) Yannick Lieber, Kenan Husic, Fan Pan

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SUMMARYThe Czech Republic is a European country located namely between Germany, Austria and Poland - its' capital and largest city is Prague. The population of the nation is numbered at 10.5 million with Czech as the official language.

STATS

STATS

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Population: 10,562,214 Total GDP: $272.2 billionGDP Per Cap: $25,900 millionExports: $146.7 billion Vehicles, ChemicalsImports: $143.5 billion Oil, MachineryMain industries: Machinery (Skoda), Agriculture (Wheat, Potatoes)

WEAKNESSES

WEAKNESSES

CORRUPTION

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Yannick- Out of 182 countries, it is ranked at 57 with a score of 4.4 for corruption - middle of the scale.- Can hamper economic growth.

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INTERNET

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Fan- Approximately 65% of the Czech Republic population uses computers and Internet.- Low computer and Internet use limits the possiblities and use of technology.

LANDLOCKED

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Kenan- Ideally located in Europe but is landlocked.- Foreign trade is more diffucult due to the country's lack of direct access to seaside ports.

THREATS

THREATS

DEPENDANT

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Yannick- Czech trades with other European countries. - Can be a great oppurtunity, but also be a threat since the country is dependant on its' surrounding markets.- If neighboring markets begin to suffer, they may cease business with the country.

POPULATION

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Fan- Large protion of the population is aging.- Unsustainable health care system, not enough funding.- The health of an economy depends on the health of it's population.

EASTERN COUNTRIES

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Kenan - Shares borders to the east with countries who are classed as having medium risk.- If there were to be conlift in the neighboring nations, threats could potentially spill into the Czech Republic.

STRENGTHS

STRENGTHS

STRONG ECONOMY

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Yannick- The country's economic health is very solid and reliable, an essential aspect of investment- Canada has a debt increase of 259% of GDP and UK at 466%, Czech Republic is at 41%- Unaffected by the economic crises, 99% household debt is in the Czech currency and has a very stable and cautious banking system

GREAT BUSINESS ENVIRONMENT

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Fan- Some of the strongest traits compared to other countires- Foreign investment, trade policies and infrastractures are very well rated on an international scale- It has the 15th best educational system in the world

PRIME LOCATION

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Kenan- Similar to real estate, a contry's location is key. Czech Republic is located in the center of Europe (Germany, Poland, Austria, Slovakia)- Part of the largest economy in the world- Many international alliances

OPPORTUNITITES

OPPORTUNITITES

STABLE & STRONG

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Yannick- Equal and stable economy where all have disposible/discretionary income- They're in a position to spend, therefore contributing to an ongoing stimulation of the economy.-Top 10 country in the world with equal distribution of income. Gini index of ~26!

WESTERNIZED MARKET

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Fan- Adapting to the Czech market can be accomplished with ease.- Culture, metality and lifestyle simliar to that of Western countries.

LOW INVESTMENT PRICES

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Kenan- Inflation is lower then the World and European avergage. - In 1991 inflation was at 36.19%! - Today it is -1.17.- Compared to similar economies, property cost is 20% less. - This means greater purchasing power and worth of funds invested.

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