Monday, February 4, 2019
Evaluating the Economy of Austria Essay -- Business Marketing Manageme
Evaluating the Economy of AustriaIn 1995 Austria joined the European Union (EU), and in 1999 they joined the European Monetary Union. The use of a common silver the Euro has facilitated trade and promoted economic stability for U.S. companies to manage pricing, balance accounts, and move products into Austria and through protrude the EU particle nations (globaledge, 2003). An un kindly exchange rate for U.S. exporters turned commanding in 2003 making the U.S. commensurate to compete on more affectionate terms in the near future. Current economic reforms in Austria atomic number 18 increasing the attractiveness of foreign investment. There argon several advantages to conducting care in Austria that will be particularly relevant in the stratum 2004. Austria is an international crossroads bordering on eight European countries which include Germany, Italy, Switzerland, Slovenia, Hungary, Slovakia, Czechoslovakian Republic, and Liechtenstein. Austrias eastern neighbors, Czech Rep ublic, Slovakia, Slovenia, and Hungary will join the EU in May of 2004. The impact of this is that Austria will become more centrally located.Austrias market is well diversified and resilient. Government is seeking to remain combative by pursuing investment in high potential industries such(prenominal) as telecommunications and electronics (globaledge, 2003). United States companies that are in the telecommunications and electronics industries project a with child(p) opportunity for exporting, joint venturing, and investment in Austria. The U.S. is Austrias 3rd largest supplier of imports and largest trade partner outside of Europe (CIA, 2003). U.S. companies entering the market for the rootage time can benefit from the already established trade lines amongst the two countries. Austrias market is highly competitive with high demands set on quality, service, and price. This type of market is ideal for supporting the favorable composition of high quality American made technolo gical and electronic products. A US community would be able to compete with EU member nations products by exporting these products to Austria. US companies looking to export products to Austria are able to employ the serve of the Commercial Services of the United States Embassy in capital of Austria (CS Vienna) acquire the information necessary to begin its operations (globaledge, 2003). The following services would be offered to such compa... ... Austrias market are very favorable to a US company that is looking to export goods. It is important to think back that while tariffs and value added taxes exist, most many goods do not have tariffs and consumers are willing to pay more for products that they see as lacking(p) to all others. CONCLUSIONUltimately, Austrias market is very appealing to US companies looking to export technology-based products. This is clear after examining several factors including marketing and counseling forces, physical forces, economic and socioeconom ic forces, and cultural forces. It is necessary that any company entering the Austrian market be familiar with the pros and cons of all of these forces. Additionally, there are a few key barriers which exist, including the potentially weak Austrian economy, the high tax burden, and new EU members. While these barriers may depend intimidating it is necessary that any US company seek out and employ all of the resources which are available, including the Commercial Services of the United States Embassy in Vienna. In conclusion, Austria appears to be an untapped gold mine for United States companies which are looking to export technological goods.