• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Make investors in the Retail and Consumer goods sector aware of business development opportunities within Eastern Europe, and more generally, to a 343 million consumer market extending from Russia to Albania, from Estonia to the Czech Republic.

Extracts from this document...

Introduction

The objective of the following Business Report is to make investors in the Retail and Consumer goods sector aware of business development opportunities within Eastern Europe, and more generally, to a 343 million consumer market extending from Russia to Albania, from Estonia to the Czech Republic. Lucy Hewitt EASTERN EUROPE: A region defined geographically as that part of Europe covering the eastern part of the continent. Generally, this means that it lies between the Ural and Caucasus Mountains and the western border of Russia. 1 For the purpose of this report Eastern Europe will include: * Belarus * Estonia * Latvia * Lithuania * Russia * Ukraine * Moldova * Bosnia - Herzegovina * Bulgaria * Croatia * Macedonia * Romania * Czech Republic * Hungary * Poland * Slovakia * Slovenia A Brief History2 In late 1989 the countries of Eastern Europe broke loose from the Soviet Union, threw off communism, and began to construct democratic institutions and market-oriented economies. This great transformation is founded on the idea that adopting the institutions and practices, that have proven successful in Western Europe since World War II, can best advance freedom and prosperity. ...read more.

Middle

Russia is home to 143 million people and is highly urbanised (69.5%), Table 3: Unemployment Figures for Russia (millions) 1998 1999 2000 2001 2002 8.9 9.0 7.0 6.4 5.7 however there has been a decline in birth rate with the majority of the population being aged 15+. Nevertheless, the economy is still highly sensitive to instability and price fluctuations within the world raw materials market. The driver behind economic growth has been the oil industry. Due to this economic growth, Russia has experienced a significant consumption boom (30% growth since 2003), which can be attributed to the recovery of real incomes and the reduction of unemployment rates. Furthermore, Russia is now looking at a booming consumer sector with personal finance becoming more readily available in the form of Credit and Loans. Russia's low cost, highly skilled labour force is highly attractive to investors. However, poor education has meant there are significant skill shortages at industry and regional levels: there is an underlying reliance on an unskilled workforce to fill low paying jobs, however, in regions the labour market is more comparable to developing countries. In contrast to Russia, Poland's macro economic environment has known turbulent and violent times. ...read more.

Conclusion

The following table portrays just some of the major barriers to entry: Table 6: Barriers to Entry Russia Poland * Regulatory constraints are strong but changing * Some regulation constraints * Unreliable suppliers and large delivery expenses * Unclear legal status of high street properties in prime location * Extremely high import tariffs (20%) * High corporate income tax (27%) * Land code means investors may only purchase land under a tendering process which is restricted and limited * Purchase property requires permission from the minister of internal affairs and administration * Restricted opening hours - employees working non standard working hours must receive added compensation * Since joining the EU there is a 10 year transition period thus limiting access * Heavy vertical integrations * Tight zoning laws - restriction on locations for Hypermarkets * Heavy geographic segmentation * There is an act on counteracting unfair competition * Intellectual property rights and enforcements * Waste law - environment tax on those that do not attain regulatory recovery or recycling rate for that given year * Technical barriers to trade * Weighted average tariff rate is 7.4% (2000) which is very high * Problematic customers valuation * To defend their market and domestic retailers, Poland are extremely proficient at employing temporary import tariffs, quotas and antidumping duties Source: GMID, www.econlib.org, www.atkearney.com, www.cidiharvard.edu,www,bbc,co. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Economy & Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Economy & Economics essays

  1. Critically evaluate the perceived competitive starategies of the five clothing retail outlets, namely Edgars, ...

    The price of imported textiles will rise and make local textiles more attractive to purchasers. The exchange rate adjustment will also enable exporters to achieve genuine profit margins without having to depend of GEIS and DCC export incentive schemes. This will not, however, make up for the unilateral decision by

  2. Use game theory to analyze an oligopoly competition of two great rivals, Wal-Mart and ...

    Moreover, the HQ is able to carry out stock-taking of each item either on shelf or in stocks within an hour in more than 4000 stores all around the world. In the US the high efficient information system co-operates with high automatic material liquidity system minimizing Wal-Mart's stocks and time storing.

  1. What were the main characteristics of Early Modern Europe?

    Princes and rulers reduced the Holy Roman Emperor's power, which was speeded up by the Reformation. By 1555, the Emperor's power was significantly reduced, and a century later, would have become a title of honour only, lacking any political leverage.

  2. The Quest for Optimal Asset Allocation Strategies in Integrating Europe.

    There is substantial empirical evidence that correlations are time varying and that correlations across markets increase during periods of higher economic and financial integration. The tests of Goetzmann et al (2001) also suggest that the structure of global correlations shifts considerably through time.

  1. Free essay

    Do high house prices in Trafford deter key public sector workers from seeking a ...

    Because they are so essential, changes in salary will not affect the government's demand for these workers, therefore demand for public sector workers is inelastic and their jobs are much more secure than private sector jobs. This is represented by the diagram on the right.

  2. Differences between the standards of living in Slovakia and The Hague

    or too many young people (0-15) because most of the elderly people might be already retired and wont be able to answer the questions that we have written onto the questionnaire and the young people on the other hand don have a job and are most likely still students and

  1. Tax Policy in Europe

    If his or her earnings are above �250,000, the rate would be 25%. For the last category, the taxable income would only be 4% of investments such as a second home or loans. More important assets such as personal car or current homes would not be included in calculating the amount of yield.

  2. world oil market

    Price S P1 D Q1 Quantity 3) Analyse the structure of the oil market and identify what kind of market structure it has. Global oil producers can be separated into two distinct groups; OPEC (Organisation of Petroleum Exporting Countries) and non-OPEC countries. OPEC produces around 40% of global supply.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work