Cultural & Economic Profile of Poland This

Executive Summary

This report focuses on Poland, a country which has experienced significant economic reforms and privatization in the wake of political changes taking place after 1989. Poland has enjoyed rapid growth in its private sector, but has also encountered a sharp increase in unemployment. The transition from a centralized system to a more democratic society and a free market economy, coupled with a shift from state to private ownership has created new investment and marketing opportunities in Poland. The purpose of this report therefore, was to examine Poland's history, particularly recent events shaping the country, along with a cultural and economic profile to establish the background within which a marketing strategy could be positioned.

Based upon an analysis of Poland's economy, the product selected for marketing in Poland consists of automobiles and trucks, specifically those of U.S. headquartered Ford Motor Company. Poland is a mixed economy in which the multiple price points of Ford products is likely to resonate. Many automakers, including those of Germany and Japan, are examining Eastern European markets as they seek global expansion and the development of new market share. Ford is ideally positioned to do the same, and itself is in need of a new thrust into Europe; Poland, as a former Eastern bloc nation, may be particularly viable for Ford. Facilitating such a move are income increases among workers in newly privatiz

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tion in many business decisions. Investors complain that state regulation is not transparent or predictable; the economy suffers from a lack of competition in many sectors, notably telecommunications. In early 2002, the government announced a new set of economic reforms, designed in many ways to complete the process launched in 1990. The package acknowledges the need to improve Poland's investment climate, particularly the conditions for small and medium-sized enterprises better prepare the economy to compete as an EU member. The government also aims to improve Poland's public finances to prepare for eventual adoption of the euro. Foreign Trade With the collapse of the ruble-based COMECON trading bloc in 1990, Poland scrambled to reorient its trade. As early as 1996, 70% of its trade was with EU members, and neighboring Germany today is Poland's dominant trading partner. While membership in the EU is Poland's primary goal, it has fostered regional integration and trade through the Central European Free Trade Agreement (CEFTA), which includes Hungary, the Czech and the Slovak Republic, and Slovenia. Most of Poland's imports are capital goods needed for industrial retooling and for manufacturing inputs, rather than imports for c

Category: Foreign - C