Foreign Investment in Czech Republic (Česká Republika) Yannick Lieber, Kenan Husic, Fan Pan
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.
WEAKNESSES
CORRUPTION
(Corruption hampers growth making economic growth more dificult for the country).Corruption within the Czech economy must be noted. Out of 182 countries, it is ranked at 57 with a score of 4.4.LINK - The Guardian: http://www.guardian.co.uk/news/datablog/interactive/2011/dec/01/world-corruption-index-transparency-international-map
INTERNET
(Low computer and Internet use limits the possiblities and use of thecnological assets).Approximately 65% of the Czech Republic population uses computers and Internet.LINK - Wiki:http://en.wikipedia.org/wiki/Economy_of_the_Czech_Republic
LANDLOCKED
(Foreign trade is more diffucult due to the country's lack of direct access to seaside ports).Though the Czech Republic is ideally located within Europe, it is a landlocked country. It does not have direct access to ports.LINK - N/A
THREATS
DEPENDANT
(If the economies of Czech's neighboring markets begin to suffer, they will cease imports from the country).The Czech economy predominently trades with otehr European countries. Though this can be a great oppurtunity, it can also be a threat since the country is dependant on its' surrounding markets.LINK - Wiki:http://en.wikipedia.org/wiki/Economy_of_the_Czech_Republic
EASTERN COUNTRIES
(If there were to be conlift in the neighboring nations, threats could potentially spill into the Czech Republic).Though Czech is classed with low political and torrirsm risk such as is the case with Canada, France and Autralia - it does share borders to the east with countries who are classed as having medium-low and medium risk.LINK - AON:http://2.bp.blogspot.com/_TFyFBwZYCgI/TTb5oE0pfHI/AAAAAAAAA-M/8WBl3RtZ8SQ/s1600/Dibujo.jpg
aPOPULATION
(The health of an economy depends on that of it's population).An ongoing concern and threat to the Czech Republic is the amount of the population that is aging and the funding for the unsustainable health care system.LINK - CIA:https://www.cia.gov/library/publications/the-world-factbook/geos/ez.html
STRENGTHS
PRIME LOCATION
(It is a strategic geographic location due to its' proximity to other nations, part of the largest economy, and has international alliances with many strong economies).Similar to real estate, a contry's location is key. Czech Republic is located in the center of Europe, sharing borders with Germany, Poland, Austria, Slovakia. An active member of the European Union (the largest free trade market in the world), NATO, WTO, and the OECD. LINK - Wiki General Info: http://en.wikipedia.org/wiki/Czech_Republic
STRONG ECONOMY
(The country's economic health is very solid and reliable - an essential aspect of investment).While Canada currently has a debt increase of 259% of GDP and UK at 466%, Czech Republic is projected to have a public debt of 47% of GDP in the next 4 years. (Currently 41.7). Unlike most competitve countries, Czech Republic was unaffected by the latest economic crises due to 99% of household debt being in the Czech Koruna currency as well as a very stable and cautious banking system. LINK - Debt Vs. GDP: http://www.gfmag.com/tools/global-database/economic-data/10403-total-debt-to-gdp.html#axzz1okxzACmO
GREAT BUSINESS ENVIRONMENT
(It is a prospering environment that will surely steadily grow with a modern and up-to-date population that will follow suit).Czech Republic has some of the strongest traits compared to its' peer countries. Foreign investment, trade policies and infrastractures are very well rated on international scale. On an educational level, it has the 15th best system in the world. LINK - The Economist Business Environment: http://country.eiu.com/article.aspx?articleid=1058343690&Country=Czech%20Republic&topic=Business&subtopic=Business+environment&subsubtopic=Czech+Republic--highlights%3a+Business+environment+outlook
OPPORTUNITITES
LOW INVESTMENT PRICES
(Due to very low inflation there is greater purchasing power and worth of funds invested).Inflation is lower then the world average and European avergage. In 1991 inflation was at a staggering 36.19% - today it is ranked at -1.17. Compared to similar economies, property cost is about 20% less. LINK - The World Bank (Inflation): http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/ECAEXT/EUEINPEXTN/0,,contentMDK:22985317~pagePK:141137~piPK:141127~theSitePK:590766,00.html
aSTABLE & STRONG
(The Czech Republic has an equal and stable economy where all have disposible/discretionary income and are in a position to spend, therefore contributing to an ongoing stimulation of the economy).It is among the top 10 countries in the world with equal distribution of income throughout the land, with a Gini index of ~26 - a noteworthy accomplishment! LINK - Gini Index Rankings: https://www.cia.gov/library/publications/the-world-factbook/rankorder/2172rank.html
WESTERNIZED MARKET
(Adapting to the Czech market can be accomplished with relative ease).The Czech Republic has a culture, metality and lifestyle simliar to that of Western countries. LINK - Czech Invest: http://www.czechinvest.org