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Country Report: Bulgaria Country Report: Essay

(Simeon Djankov 2010) 5) Across the Border Trade

According to Doing Business Bulgaria ranked 109 in across the border trade in 2010 and 109 in 2011. The index for clearance for export goods is 5 in Bulgaria as compared to 6.4 in Eastern Europe and Central Asia. All the required official documents -- from the contractual agreement between the 2 parties to the delivery of goods along with monetary requirement for completion. The total time taken to deal with all the legal conduct to export goods is 23 in Bulgaria as compared to 26.7 in Eastern Europe and Central Asia. The total cost to export goods is 1551 in Bulgaria as compared to 1651 in Eastern Europe and Central Asia.

USER OF THE REPORT

Multinational Enterprises:

MNEs play an important role in a two to three fold leap forward in a country's economy. Its importance is felt in local progress and in resolving regional inconsistencies in revenues, production and living standard. However still the Bulgarian economy is dominated by SMEs. A possible explanation could be found in the intention and configuration of these MNEs, slow national development, low assimilation capacity of regions and insufficient government policy. As can be deduced from the above methodology that while initiating a new enterprise might be an easy task but it remains so in illusion because Bulgaria is still lagging behind in next in line tasks such as getting a licenses, paying the debts, giving the taxes and trade across border

Small and Medium Enterprises

SMEs comprise of about 99% of firms in Bulgaria. Their role becomes evident in areas of competitive market economy. As they provide new ventures for the unemployed Bulgarian workforce (ensures 79% of employment), social stability, sustained economic growth (75% of economic turn over). A number of recent governmental...

Even more important amendments included removing part of the legal procedures for SMEs, for example reducing the number of licenses and permit. New policies of easy five-year money loan with reduced interest rate have made it possible for small firms to more easily go in and out of business.
Individual Investors:

While starting a new venture might be a roller coaster ride for the investors which initially might seem as a gamble but its very much dependent upon the international market. Because Bulgaria is while still progressing to counter its competition from its co-EU members it still has long way to go. Hence buying share of different companies and investing in new projects might not go in favor right now but in long ran it promises to give positive results. [7]

BIBLOGRAPHY

Arton Capital, Immigrant Investor Programs, Retrieved 2011-08-04, "Bulgarian Investment Advantages," http://www.investbulgaria.com/.

Djankov, McLiesh and Shleifer, 2007. "Private Credit in 129 Countries," Journal of Financial Economics

Djankov, Rafael La Porta, 2010. "The Effect of Corporate Taxes on Investment and Entrepreneurship," American Economic Journal: Macroeconomics.

Simeon Djankov, Rafael La Porta, Florencio Lopez De-Silanes & Andrei Shleifer, 2002. "The Regulation of Entry," Quarterly Journal of Economics, vol CXVII, issue no1

The World Bank Group 2008, "World Bank: Data and Statistics: Country Groups." http://go.worldbank.org/D7SN0B8YU0.

The World Bank Group 2008. "Country Brief 2010." http://go.worldbank.org / SAV2JS3JA0.

The World Bank Group, 2011.…

Sources used in this document:
The World Bank Group 2008, "World Bank: Data and Statistics: Country Groups." http://go.worldbank.org/D7SN0B8YU0.

The World Bank Group 2008. "Country Brief 2010." http://go.worldbank.org / SAV2JS3JA0.

The World Bank Group, 2011. "Doing Business Bulgaria: Making a difference for entrepreneurs," http://www.doingbusiness.org/data/exploreeconomies/bulgaria/#starting-a-business.
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