00). This is below the EU, where they have a rating of 42 or a PPP of $32,500.00. (Czech Republic 2010) 1 When you compare the two numbers, the purchasing power is lower in the Czech Republic in comparison with the EU. This means, that labor costs are much lower in relation to the rest of Europe. When you put this together with the increases in the GDP over the last two quarters and the fact that the banking sector, was undamaged from the financial crisis; means the Czech Republic has outstanding opportunities for addressing the needs of the company. As the country's costs, the business friendly atmosphere and prudent practices of government policies are creating the ideal environment for a European call center to flourish.
Risks
Despite the obvious advantages, there are risks of relocating to the Czech Republic the most notable would include: the underlying cost structure. While labor costs are lower in comparison with other EU countries, the Czech Republic is in the middle of the range in comparison with other EU member such as: Latvia or Georgia. Where, Latvia ranks 78 (with a PPP of $15,500.00), while Georgia ranks 151 (with a PPP of $4,400.00). (Czech Republic 2010) 1 This is problematic, because the lower labor costs in other EU countries could be more advantageous than Czech Republic. Then, when you consider the fact that 7% of the domestic manufacturers have relocated to other countries because of this reason, highlights how the overall cost structure must be continually monitored. That being said, the total number of business continuing to relocate to the Czech Republic, far outweighs the domestic manufacturers seeking lower...
Economic Environment of a Business The objective of this work is to summarize the economic environment of a business including information relating to microeconomics, macroeconomics, and international trade aspects The business organization is a "micro-economic unit" and the business environment is that which makes provision of the "macro-economic context within which firm operates." (Reddy, ) The business environment can be categorized into the 'economic' and non-economic' and the 'micro- and macro-environment. (Reddy,,
Economic Environment of the Diamond Industry in Mozambique and Tanzania The Economic Environment of the Diamond Industry In Mozambique and Tanzania Both nations of Mozambique and Tanzania are among the poorest globally, with each supported through foreign subsidies and foreign direct investment (FDI) (Tanzania, 2011). The relative levels of poverty however have led to political unrest in Mozambique and diamond smuggling to Zimbabwe, where gems are in high demand in that nations' economy
economic environment, simply defined, Globalization is "a phenomena by which economic agents in any given part of the world are much more affected by events elsewhere in the world." (Wolf, 2004) Globalization also "refers to the process of increasing social and cultural inter-connectedness, political interdependence, and economic, financial and market integrations. Globalization makes alliances an integral part of a firm's strategy to better satisfy customers and to achieve sustainable
Business - Management External Environment Analysis Southwest Airlines is the nation's low fair, high customer satisfaction airline. It mainly serves short haul cities, offering single class air transportation, which aims for the business commuter as well as leisure travelers. The North American Industry Classification System (NAICS) classifies Southwest Airlines as Scheduled Passenger Air Transportation - 481111 (North American Industry Classification System, 2011). When conducting an external analysis it is important to look at
Minimum Wage: Since employment levels in the coffee industry will recover in the short-term and experience minimal growth, the minimum wage will also recover slightly because of greater automation. Currently, the minimum wage for every worker in this industry is $12,589 and is expected to increase to $13,197 in the next five years. The automation of the food-preparation process is considered as the major factor for the long-term trend of declining
Economic Environment The economic environment of Greece is that of a capitalist economy, but with significant public sector contribution – about 40% of total GDP is from government activity. This speaks more to the relatively small size of the Greek private sector than to excessive government ownership of industry. Tourism is one of the major drivers of the Greek economy, accounting for 18% of GDP (CIA World Factbook, 2017). Thus Greece
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now