Evaluating the Economy of Austria Essay

    A countires location can also affect how people live. Anything from climate to where the country is located compared to the equator can completely determine how someone lives. A place with a rainy climate that may rely on industry will be completely different that one with a more mild climate that relies on agriculture. A countires location from the equator will also drastically affect how people live. A country like Brazil that is right next to the equator will focus their industries on different things than a country like Russia, who is far away from the equator, will rely on different types of industries. A country’s location can also determine how it is affected by natural disasters.For example, Thailand has a risk of tsunamis, California is greatly affected by earthquakes, and places like Hawaii are affected by volcanos. All of those things can affect a country's economy and development.

Breitfelder, M. (1998). The Euro Currency Age: Challenges and Opportunities for U.S. Businesses. Business America, 119 (7), 33.

The foreign market must offer a location advantage that makes it profitable to produce the product in the foreign country rather than simply produce it at home and export it to the foreign market. It includes resource endowments, economic and social factors, such as market size and structure, prospects for market growth and the degree of development, labour and input materials costs, the cultural, legal, political and institutional environment, government legislation and policies

Geography can be setting but can also be psychology, attitude, finance, industry-anything that place can forge in the people who live

Austria is 48 degrees N, 16 degrees E. It is next to Germany, Czech Republic, Slovakia, Hungary, Slovenia, Switzerland, and Italy

Provide a list of at least three key issues a manager should consider when doing business in a different country. Explain the importance for each of these issues.

The German economy is the largest in Europe and worldwide Germany has the fifth largest economy (“World fact book”, n.d.). It is clear that the German economy holds a key position in the world marketplace. Gross domestic product (GDP) growth is an important consideration for foreign investment as it speaks to the overall health of an economy. GDP growth can be attributed to spending and investments both on and from imports and exports (“What is GDP”, 2005). In 2014 the reported GDP growth rate in Germany was 1.4%, up .9 % from the prior year (“World fact book” n.d.). The Eurozone was deeply affected by a recession stemming from the US and made worse by poor economic conditions in Greece and Spain, among other countries in

In this way, the Fed manages price inflation in the economy. So bonds affect the U.S. economy by determining interest rates. This affects the amount of liquidity. This determines how easy or difficult it is to buy things on credit, take out loans for cars, houses or education, and expand businesses. In other words, bonds affect everything in the economy. Treasury bonds impact the economy by providing extra spending money for the government and consumers. This is because Treasury bonds are essentially a loan to the government that is usually purchased by domestic consumers. However, for a variety of reasons, foreign governments have been purchasing a larger percentage of Treasury bonds, in effect providing the U.S. government with a loan. This allows the government to spend more, which stimulates the economy. Treasury bonds also help the consumer. When there is a great demand for bonds, it lowers the interest rate.

The Republic of Austria, or more commonly known as Austria, is a mountainous, beautiful country in Europe. It is located in the central part of Europe, and it is landlocked, or doesn’t touch open water. It does however have the longest river in Europe flowing through it: the Danube River. It is a member of the European Union, and the currency of it is the Euro, like other bordering countries. The country is highly mountainous, due to the large mountain system called the Alpine Mountain System runs through sixty-two percent of the country’s land mass. It starts in the West part of Austria and stretches out to the East. Austria is an exciting country in culture and geography.

When looking at a map of Europe and asked to identify a country with one of the best economically sound counties, many people would say Germany. According to the UK – German connection Voyage, “Germany is a republic with a parliamentary democracy and a bicameral system of government. The Federal Government consists of the Chancellor and his or her ministers who are drawn from the members of the Bundestag. The ministers usually belong to the parties who form the ruling coalition.” Germany is also said to have the largest national economy in Europe. Germany’s economy is also the fourth largest by nominal GDP in the world (EW World Economy Team). As stated by the website German Culture, Germany’s economy is labeled as a Social Market Economy otherwise known in German as the soziale Marktwirtschaft. For years Germany has been seen as one of the leaders of economy in Europe and around the world, but that doesn’t always mean the country is stable. Germany has a long and treacherous history of being labeled “unstable.”. From the time Hitler dominated Germany in 1933 to the time of the Berlin Wall in 1961 Germany has struggled in the past with their own people and their economy. However, if a person would look at Germany’s economy today they would find a very different picture. According to Make it in Germany, Germany has been a stable democracy for the past

Austria is a country from Europe continent geographically located at latitude and longitude of 48.1200° N, 16.2200° E, respectively. The country is bordered by the following nations; Czech Republic, Germany, Hungary, Italy, Liechtenstein, Slovakia, Slovenia and Switzerland. It is rich with historical information and artifacts, serene places and features, traditions and activities that are unique in the area. It is commonly associated with summer tourists who visit the historic cities and villages and hike in the magnificent scenery of the mountainous places.

     Other issues regarding international expansion into other countries also need to be considered including, access to supportive infrastructure, adapting to local culture and trade laws. Competitors within each of these regions will also pose a threat; a deeper analysis of competition within the food service industry utilizing Porter’s Five Forces model is located on the next page.

Measuring a potential business venture has many aspects which the international manager must be aware of in order to convey the correct information back to the decision makers. Being ignorant to any of the aspects can lead to a false representation of the project, and hence an uninformed decision being passed. In order for a business to survive it must grow. For growth to be optimal, management must first be able to identify the most attractive prospective leads. The country as a whole, specifically geography, government, and financial aspects must be looked at in order to yield the best possible picture of the market a company wishes to enter. Concentration should be placed on gathering reliable facts

The European Union (EU) was established in order to prevent the horrors of modern warfare, experienced by most of Europe during the World Wars of the 20th century, from ever ensuing again, by aiming to create an environment of trust with the countries of Europe cooperating in areas such as commerce, research and trade (Adams, 2001). The EU has evolved into an economic, trade, political and monetary alliance between twenty-eight European Member States. While not all Member States are in monetary union (i.e. share the currency of the euro), those that are form the ‘Euro-zone’ (Dinan, 2006). The EU can pass a number of types of legislation, with a regulation, act, or law, being the most powerful. Its ‘tricameral’ (European Union, 2007)

With the effect of the Single European Act on 1st July 1987, the emergence of European Union (EU) as a common market has essentially been created. The benefits of this act are substantial to European firms, economies, and workers. It eliminates conflicting national regulations and trade barriers, as well as offering firms opportunity to sell their goods to all other EU members (Griffin & Pustay 2005).