Evaluating the Economy of Austria Essay

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Evaluating the Economy of Austria

In 1995 Austria joined the European Union (EU), and in 1999 they joined the European Monetary Union. The use of a common currency the “Euro” has facilitated trade and promoted economic stability for U.S. companies to manage pricing, balance accounts, and move products into Austria and throughout the EU member nations (“globaledge”, 2003). An unfavorable exchange rate for U.S. exporters turned positive in 2003 making the U.S. able to compete on more favorable terms in the near future.
Current economic reforms in Austria are increasing the attractiveness of foreign investment. There are several advantages to conducting business in Austria that will be particularly relevant in the year 2004. Austria
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exports could be negatively affected
• In 2004 the addition of four new members to the EU could create increased competition for U.S. companies

In addition to the aspects of the Austrian market that affect marketing and management there are other factors that must be examined. These factors affecting whether or not to conduct business in another country include: the physical forces that affect a country economically, various economic and socioeconomic forces, sociocultural forces, and competitive and distributive forces.
PHYSICAL FORCES
It is vital to examine the physical forces of a country including but not limited to the following: the location of the country, its political relationships, topography, climate, natural resources, and dynamic physical resources. The evaluation of these forces allows a more clear view of the business potential in a chosen country. Austria’s location is unique in the sense that it is a land locked country. It is located in Central
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