Wednesday, November 13, 2019
Evaluating the Economy of Austria Essay -- Business Marketing Manageme
Evaluating the Economy of Austria Ã Ã Ã Ã Ã In 1995 Austria joined the European Union (EU), and in 1999 they joined the European Monetary Union. The use of a common currency the Ã¢â¬Å"EuroÃ¢â¬ 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 (Ã¢â¬Å"globaledgeÃ¢â¬ , 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 is an international crossroads bordering on eight European countries which include Germany, Italy, Switzerland, Slovenia, Hungary, Slovakia, Czech Republic, and Liechtenstein. AustriaÃ¢â¬â¢s eastern neighbors, Czech Republic, Slovakia, Slovenia, and Hungary will join the EU in May of 2004. The impact of this is that Austria will become more centrally located. Ã Ã Ã Ã Ã AustriaÃ¢â¬â¢s market is well diversified and resilient. Government is seeking to remain competitive by pursuing investment in high potential industries such as telecommunications and electronics (Ã¢â¬Å"globaledgeÃ¢â¬ , 2003). United States companies that are in the telecommunications and electronics industries have a great opportunity for exporting, joint venturing, and investment in Austria. Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã The U.S. is AustriaÃ¢â¬â¢s 3rd largest supplier of imports and largest trade partner outside of Europe (Ã¢â¬Å"CIAÃ¢â¬ , 2003). U.S. companies entering the market for the first time can benefit from the already established trade lines between the two countries. AustriaÃ¢â¬â¢s market is highly competitive with high demands placed on quality, service, and price. This type of market is ideal for supporting the favorable reputation of high quality American made technological and electronic products. A US company would be able to compete with EU member nations products by exporting these products to Austria. Ã Ã Ã Ã Ã US companies looking to export products to Austria are able to employ the services of the Commercial Services of the United States Embassy in Vienna (CS Vienna) acquire the information necessary to begin its operations (Ã¢â¬Å"globaledgeÃ¢â¬ , 2003). The following services would be offered to such compa... ... AustriaÃ¢â¬â¢s market are very favorable to a US company that is looking to export goods. It is important to remember 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 inferior to all others. CONCLUSION Ã Ã Ã Ã Ã Ultimately, AustriaÃ¢â¬â¢s market is very appealing to US companies looking to export technology-based products. This is clear after examining several factors including: marketing and management forces, physical forces, economic and socioeconomic 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 seem 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.