BU7412 International Business Assignment Sample Introduction
The political environment plays a crucial role in business and the stable political conditions of Poland provide an immense opportunity for the foreign companies to expand their business effectively. The current report gets on the task of assessing the different aspects of the trading between Poland and the nations as listed in SAARC, where the political environment and the strategic ways in which the trade has been caused will be described.
Moreover, the trading bloc nations will be discussed in terms of the challenges and the analysis of the competition of Poland with the SAARC bloc nations will be analysed. The way of creating a sustainable business in the climate of the global economic arena is the method of making the privatisation the central power to leverage a nation and let the nation have a strong expanded business with the other nations in the SAARC bloc.
Section 1: Critical discussion of the political environment of Poland impacting foreign business
Critical discussion on the political environment of Poland and the positive as well as negative impact on business
The political environment is one of the important pillars of a macro environment for a business and a stable political situation of a country helps a company to launch a new product or service in a foreign country. Poland is a democratic country and it consists of multiparty democracy with a two-chamber parliament and the business environment of the country is good for foreign bruins due to a stable government (Paih.gov, 2022).http://BU7412 International Business Assignment Sample
Poland has a stable business environment and it provides immense opportunity to the foreign companies to expand their business in the country and a good relationship with the neighbours boosts the export important relationship with other countries. According to the World Bank, the percentage of exporting of goods and services is 56.2 % which boosts the foreign business positively and it is comparatively high from the other countries (Worldbank.org, 2022).http://BU7412 International Business Assignment Sample
Figure1: Exporting of goods and services
(Worldbank.org, 2022)
In addition to that, a good relationship with the neighbouring countries attracts the attention of the investors and it enhances the scope of expanding a business in the countries. Due to the good governance of the Poland government, the current Gross Domestic Product is US$ 596.2 Billion which is comparatively higher than other countries.
The higher GDP of the country helps to create more jobs as well as better wages for labourers which also helps to enhance the scope of the business for the foreign companies. The current inflation rate is 5.1 % as the stable inflation rate of the country helps the foreign companies to predict the financial condition of the country which ensures good opportunities for business.
The stable government, as well as the flexible economic condition of the country, helps to enhance the purchasing power of the country. Sovereign Wealth Fund plays an important role in enhancing the global fund the Countries exploit this factor as a popular business strategy (Bahoo, 2020.).http://BU7412 International Business Assignment Sample Apart from that, according to a survey Poland’s rank is 40 in the ease of doing business out of 128 countries in the worldwide range and it also offers great scope for the foreign business investors (Refer to Appendix 1).
The growth of Poland is dependent on stable political conditions, foreign investment, a stable banking system, and domestic demand and the country has gone through unbroken economic growth (Gov.uk, 2022)
Figure 2: Foreign Investment in Poland
(Gov.uk, 2022)
In contrast to that, due to stringent rules of the Polish government during the pandemic Covid-19 GDP has fallen by 2.8% and the rules and regulations strictly grew by 4.5 % in 2019. Apart from that, due to the stringent rules of the pandemic, the companies have faced several threats to continue export as well as import facilities and it initially disrupts the business adversely.
With stringent rules and regulations related to trade in Poland and a higher level of bureaucracy, foreign companies face negative impacts in the country. Lack of initiative of the Polish Government, the country has poor road conditions and the foreign companies face challenges in case of doing business or expanding business.
The bilateral relationship between Poland and the UK is good and it positively effectively influences the business and the two countries are almost 22.2 Billion. On a specific note, Poland is a politically stable country and there are several positive aspects which help foreign companies to expand their business or launch new products or services in the country.
The initiative of the Poland Government in supporting foreign business
The government of Poland has taken several initiatives to support business to encourage foreign investors for expanding business in Poland and it boosts the overall economy of the country. In the country there is a department called Polish Agency for Enterprise Development and the department helps to implement several national as well as international programmes to encourage a business-friendly atmosphere.
Along with that, the growth of population within a country as well as economic nationalism provides an impact on strategies of the companies, cross-border management and many more (Ghauri & Cooke, 2021). http://BU7412 International Business Assignment SamplePoland Prize is a great initiative of the country which helps the country to encourage the foreign startups as the programme consists of innovative concepts of incubation and acceleration as well as providing convenience to those companies.
For instance, Chile or Estonia, France, and Poland have effectively utilised the opportunity and found benefits of cultural diversification within the country and it boosts the confidence of the foreign companies. The country also follows the CrossEUWBA programme to provide special conveniences to the women entrepreneur and this also attracts foreign investors due to the sustainability of the business.
The Polish Investment Zone Act provides big support for new investments and tax exemption offers great scope for the foreign companies to expand their business or launch product or service. The government of the country takes many initiatives related to sustainable social development and it also provides huge scope to the foreign companies and boosts their confidence.
The country was ranked 37 out of 140 countries in the World Economic Forum Global Competitiveness Index and the competitive market of Poland provides huge scope to the companies from the international range to successfully do the business.
On the other hand, the companies need to implement proper strategies to expand the business in the foreign country as a strategy depends on the resource of the company as well as the capability of the employee (Pearson UK, 2020.) The government of Poland has stringent rules regarding Intellectual Property (IP) such as trademark, copyrights, and patents and it also helps the foreign companies to save tax and gains overall profit. Poland is a technologically advanced country and the decision of the Polish government and investment in technological support help the foreign company to expand their business in the country.
Main issues and challenges for foreign business within the country with the support of company examples and issues
In Poland, the major challenge that the companies face may be said to be the tax system to be revised and follow a close circuit of the trade network be revised, which is one of the issues faced by Poland based corporations. The tax system for the new companies in Poland as compared to the other nations has been non-friendly to the external companies where thus it may be said that Poland needs a revision of the current tax system better.
The companies such as Lower Silesian, Malopolskie and Cracow are the few companies that have been operating under the exclusive structural rules of the Polish curriculum, where Poland often fails to perform in an integrated way. The environment for the work culture to become operative of the different cultural impacts is one of the most important criteria for the corporations in Poland to operate, where the problem of the regulation of the Polish government for the direct homebound companies is one of the biggest challenges (Gov.pl., 2022). http://BU7412 International Business Assignment Sample
Section 2: Competition and the challenges for Poland in trade with the regional trading bloc
The purpose of the report is to understand and form the idea about the critical analysis of the entire method of evaluating the trade between Poland and the SAARC nations, which are Bangladesh, India, Pakistan, Maldives, Sri Lanka, and Nepal respectively.
Discussion on Poland and Bangladesh
Trade between Poland and Bangladesh
The trade between Poland and Bangladesh may be said to be quite increasing in the past few years, where the trading companies that are on the trading list make paper, animal products, metallic products and a few more. It may be said from the actual data that the competitive advantage that Poland has over Bangladesh is because the export statistics in Poland are far higher than in Bangladesh (OEC, 2022). http://BU7412 International Business Assignment Sample
The trade tariff may be said to create a substantial impact on the trade of Poland with Bangladesh, where the current discussion describes the way in which Poland trades with Bangladesh being a part of the European Union (EU).
Challenges and competitors analysis of trade between Poland and Bangladesh
The reading data sums to the mark of around 20% of the trade between Poland and Bangladesh as a composite factor, and it may be said that the trade factor is mostly favourable due to Poland’s great import to the EU (European Commission, 2022). http://BU7412 International Business Assignment SampleHowever, the major challenge that may be said to surface between Poland and Bangladesh is the loss of objectivity and the major probability of the potential ways in which the trade deal between the EU and Bangladesh may not work, leading to a major impact on Poland (Kenner, 2017).http://BU7412 International Business Assignment Sample There have been major issues regarding the trade obstacles between Bangladesh and Poland, where the different amendments regarding the trading ties need to be restructured (Alam, 2017).http://BU7412 International Business Assignment Sample
Discussion on Poland and India
Trade between Poland and India
The trading system between Poland and India may be said to be quite a discussion in terms of the ways of the exchange of goods and services, and according to the Government of India, the trade consists of agricultural products on a grand scale. Furthermore, the trade has been the proportion of around 0.5% for Indian exports, and that has been a major factor in recent times (Mea.gov, 2022).http://BU7412 International Business Assignment Sample
Figure 3: Trade between Poland and India
(Mea.gov, 2022)
The trade between Poland and India may be said to be quite diversified by the ArcelorMittal Nippon Steel and the other companies that have made direct trade have been in the trade of coal and different medicinal trade (Refer to Appendix 2). The trade depends on the exclusive nature of the step that is taken for the business form to consolidate the business overseas, and for Poland, this may be said that the Polish corporations always need to analyse the mergers and acquisition strategy (Johnson G. W., 2020).http://BU7412 International Business Assignment Sample
Challenges and competitors analysis of trade between Poland and India
The challenges that lie between Poland and India on the trading terms may be said to be non-operative on the agreement of the Broad-Based Trade and Investment Policy, which is an area of challenge for both nations.
There have been numerous trade agreements between Poland and India, and the trading relations may be said to be quite efficient in the reduction of excessive taxation rates, and alliance on technological innovation, yet there lie many challenges (Mea.gov, 2022).http://BU7412 International Business Assignment Sample
Discussion on Poland and Nepal
Trade between Poland and Nepal
There may be said that the trade between Nepal and Poland has been in the best situation and the trade conditions, as had been expected to grow, have not shown growth. The trade between Poland and Nepal has been mostly in the industry of the food sector, the different forms of creation and clothing, where the negative news is the goal of trade increasing every year (MOFA, 2022).http://BU7412 International Business Assignment Sample
Challenges and competitors analysis of trade between Poland and Nepal
The trade relationship between Nepal and Poland thus may be said to be stagnant and to a large extent, has not been expanded to the category of technical products and automobiles industry, which is the challenge.
The research papers usually have analysed the different systems of trade between multinationals, and have explored the dimension of the financial, and the political and understand the exact ways of trade exploration (Buckley, 2021).http://BU7412 International Business Assignment Sample
Discussion on Poland and Pakistan
Trade between Poland and Pakistan
The trade relations between the two nations of Pakistan and Poland may be said to be based on the different relational competition that has been worsened by the political conditions. The political demarcations between the two nations have been a determinant factor for the trade, and thus, the trade has been crossing around 450 million euros respectively (Gov.pl., 2022).http://BU7412 International Business Assignment Sample
Figure 4: Trade between Poland and Pakistan
(Gov.pl., 2022)
Challenges and competitors analysis of trade between Poland and Pakistan
Poland may be said to have the challenge of making the trade agreement with Pakistan to be quite challenging owing to the format of the legalisation and the trade licence not being matured formally, which has less way of assessing the genuinely (WTO, 2022).
Discussion on Poland and Sri Lanka
Trade between Poland and Sri Lanka
The trade relationship between Sri Lanka with Poland may be said to be quite critical in terms of the element that is being observed for the nations, where the tourism and hospitality industry in Sri Lanka has been growing due to Poland (Srilankabusiness.com, 2022).http://BU7412 International Business Assignment Sample
The trade records have been growing around $100 million in recent periods, and there have been dealership trade mostly rather than direct customer deals. The organisations of Sri Lanka such as the Venture Tea, and Empire Teas have traded more liberal with Poland and have been focussing on the factors of innovation and geographical limitations (Kim, 2020).http://BU7412 International Business Assignment Sample
Challenges and competitors analysis of trade between Poland and Sri Lanka
The major challenge that Sri Lanka experiences with Poland are the lack of liberal trade and it needs a formal business agreement, which has restrictions on several of the commodities due to such limitations (Refer to Appendix 3).
Discussion on Poland and Maldives
Trade between Poland and Maldives
The trade between Poland and Maldives may be said to be quite satisfactory due to the fact that the trade balance has been continually increasing with the overall system of growth crossing around 80%, thus amounting to the export increment. Moreover, it may be said that the trade between the two nations has been mostly based on the industry of beverages, and different marine food that makes up a greater proportion (Gov.pl, 2022). http://BU7412 International Business Assignment Sample
Challenges and competitors analysis of trade between Poland and Maldives
The Maldives has faced the problem of suffering the trade that has made the nation get the trade crippled and experience the problem of the Covid-19 situation, on which the trade between the nation and Poland is affected. However, Poland tourism has made the turnaround phase right after the Covid-19 situation on the trade with the Maldives, where trade has made the readjustment that has increased by over 1 million (Worldbank.org, 2022).http://BU7412 International Business Assignment Sample
Discussion on Poland and Bhutan
Trade between Poland and Bhutan
Normalised bilateral trade that the other nations enjoy is not the case with Bhutan and Poland because of the smaller size of Bhutan comprising a smaller economic proportion. The annual income rise indicates the Gross Domestic Product (GDP) growth rate is around 8% of Bhutan, and the Poland and Bhutan trade usually gets out of stabilisation due to an inflationary hike (Worldbank.org, 2022).
Challenges and competitors analysis of trade between Poland and Bhutan
The wide challenge that Bhutan faces in trade with Poland is the problem of deficiency in the innovation issue, where Bhutan lacks serious technological empowerment (Refer To Appendix 4).
Section 3: Strategies took by Poland to resolve the stated trade challenges
The discussion here needs to be started by stating the trade challenges clearly and having a subjective analysis of the issues in a serious manner, where Poland faces a deficit in labour, and innovation problem and a widespread economic gap. The strategy that Poland has taken to be quite efficient in the system of the economic machinery of the nation to be efficient in trading with the SAARC nations is the privatisation.
Most of the research academics have studied the actual scenario and have found that the trade transmission has been occurring in the geographical territories employing better centralisation of the business firms (McWilliam, 2020). This method of centralisation and the way of incorporating the different sections and making the jobs available for the different people of Poland without much hustling has made the strategy of Poland to get a better method of sustenance.
The research study asserts that the merger and acquisition for Poland, being the trading partner, is explored to be acquired by foreign firms, as has been evaluated by previous data (Aleksanyan, 2021). It is quite appreciative that Poland instead of designing laws on the trade reforms and the policy amendments from the nations of SAARC has made the entire economic force independent by privatisation and union of workforce creating most of the private sector work available.
Poland had been depending on the strategy of Foreign Direct Investment by letting the nations of the EU be the party to have the FDI investment made at large and thus create a substantial force of revenue for the nation.
The industries in Poland have the busiest foundation based on the compression of the cost and let the company have the overall economic moderation be carried out with the EU by the method of a continuous growth, which itself is strategy-wise in economic terms (Hunter Jr, 2019). Poland has made the overall strategy of letting the expansion of global market for the Polish companies and encompasses the excessive cost of labour by outsourcing from several regions of the SAARC trading bloc, which itself is a great way Poland has devised.
Poland has the strategy for letting the market be in the strategic advantage to have the development of the “Special Economic Zone” which is the ground for Poland to gain a rise in the foreign market and amplify the FDI to a higher rate of business margin, increasing the total economic average to a large extent (Hunter Jr, 2019).
Figure 5: Special Economic Zones investment in Poland
(Hunter Jr, 2019)
Poland moreover may be said to create the strategic advantage of letting the project have zero restrictions attracts most of the investors to have the business in Poland and make the Polish market a substantial ground for a better investment.
The Green Field Architectural Project is one of the characteristics of Poland to say that has led the nation to progress in business and has the limitations on the FDI be eliminated, which is one of the most powerful strategies to bring in more themes of privatisation (Hunter Jr, 2019).
Poland may be said to tackle the challenge that it faces with the SAARC bloc is the utilisation of the different ways of letting the trade be a constant factor in the cost of the national workforce, where the per hour cost of the different labour has been quite lower and thus have a baseline of the foreign investors intending to trade in the nation of Poland getting easy access to the different resourceful ways of accumulating wealth.
The remodelling of the entire economic scenario in Poland has been made back in the earlier years when Poland broke free from the dominion of the foreign captivation, has made the solemn step to create an economy that is less dependent and explores the FDI rich business scopes.
On a secondary term, the nation of Poland has made the bilateral trade get a success ratio from the nations of India and Bangladesh because Poland continually makes the cost of the excise duty and the international based tariff lower and also has clarity in execution (Hunter Jr, 2019).
Moreover, the different researches that have made the trade sustain the core focus of the academic studies of the trade between Poland and the SAARC bloc, have a found that the wide strategy of Poland to reduce the trade disparities less in the centralisation of the national currency to be of European currency (Kolodko, 2017). India is an active member of the SAARC bloc and has trade relations with Poland on a strong and relative level, and the nation has adopted the system of making the trade be expanded much more by the method of reformation of EU trade standards.
It may be said that Poland usually focuses on the state-of-the-art system of shaping the economy based on powerful knowledge sharing and creating a zone of further work opportunities by lowering governmental restrictions. Furthermore, Poland has resolved to take the business with India be reformed and taken to a new summit by increasing the margin of trade increased and following a strict code of trading in an open economy with India (Refer to Appendix 5).
Poland in another way has made the strategy of innovating the trade with Pakistan and also with India or be imposed by introducing or increasing the service hours of the Polish flights, which is a great way to look at the ways of Poland’s trade expansion.
Poland has considered the market between the nations and Sri Lanka to have the strategic improvement in the trade of the different agricultural products and thus have a conclusive rise in the exchange of the products be considered with the tea products to the different other service utilities (bilaterals.org, 2022). The Maldives and Sri Lanka both make the strategic decision of developing trade with Poland and it may be said that the tourism industry operates because of the high tourist turnover from Poland.
Bangladesh has the advantage of the different ways of letting the tax be liberated and still face the tax structure being a lower barrier for trade to have a strong face in terms of trade being improved and developed, which is an invitation to Poland to continue the trade.
The journal articles that explored the topic of international trade often find it quite perplexing that the different models of trade may not be clear unless the trade factors have been clearly defined, of which the cultural heritage and the Human Resources have been cited to be the most important (Srivastava, 2020).
Poland may find it entirely beneficial to let the trade expand because of the reason that the inter-commercialisation of the goods and the tax system of Bangladesh has a lower tax margin quite efficiently (ustr.gov, 2022). The trade with Nepal may be said to have the reason for a great expansion because Nepal usually makes the trade one of the most suitable trade paradigms due to the trade that is not dependent on the excise duty. Moreover, Nepal does not have the problem of tax restrictions on various products, which has been made into a trade linkage with Poland and has the intensive benefit of making a flexible trade agreement (trade.gov, 2022).
Conclusion and recommendations
Conclusion
The World Bank has been the force behind the collaboration and the supporting force behind the economic upliftment of Poland with the SAARC bloc nations. The process by the way of union and bringing in the centralisation of the workforce of the Polish market has been a great strategic way for Poland to let the trade be immune to economic shocks.
This report has explored the different ways in which Poland has been funding the strategic ways of removing the trade challenges with the different nations of the SAARC nations, and has highlighted the key points. In addition to this, the report takes into consideration the different ways in which Poland may have the benefit of letting the trade between the different nations have an intermittent way and make a great conclusion redeeming the product diversification and resolving the conflicts of trade barriers.
Recommendations for further trade strategies for Poland
The recommendations for Poland to increase the trade between the different nations of the SAARC bloc in the coming years and referring to the present day context may be stated in the following manner:
- Poland may consider the trade to be more market-oriented, by setting up different Polish firm in several the nations, where tourism outlets of Poland in nations such as Nepal and Sri Lanka seems to be quite prospective
- Poland may have the benefit of being the nation that needs to be more technologically advanced and a digital model of trade to be explored, such as solving the challenge of letting the business be flourished on the international model of communication as researchers have found (Szkudlarek, 2020)
Poland needs to adopt the Firm-Specific Advantages (FSA) to be widely followed by the different national companies while setting up the business with the regions of the SAARC bloc and choose strategically such locations that may be advantageous (Verbeke, 2021).
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