The Republic of Austria

RUNNING HEAD: COUNTRY ANALYSIS OF AUSTRIA
Country analysis of Austria
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COUNTRY ANALYSIS OF AUSTRIA1
Executive summary:
In Central Europe, there is a country named Republic of Austria, which formed with
nine federated states. The capital of this country is Vienna, the largest city and one of the nine
states. This country has a wealth of resources such as arable land, sugar beets, cereals, forests,
fish, minerals, and wind. This country is famous for castles, palaces, and other architectural
works. There are several important industries, which are construction, electronics, tourism,
food and drinks, logistics, automobile, chemical industries, and transportation. For Austrian
people, collaboration is essential rather than bossing. Every stakeholder is vital in this
country. In the matter of business communication, the Austrian people are pragmatic. ‘Calm
and relaxed environment motivates the employee to do a good job’ is the work philosophy of
Austrian people. The country analysis of Austria will be done in this paper. The report of this
country analysis will help the CEO of the Canadian company to understand the country
environment and market situation of Austria. In the end, there are some recommendations for
the Canadian company to expand the business in Austria with pre-caution.
Macro environment:
Description:
There are nearly 1.7 million people in Austria. German is the official language of this
country. Austria is the member of the European Union since 1995 and has approved the Euro
as its official currency (Sauvant et al.). Water resources of this country are in good condition,
which means this country contains a sufficient amount of groundwater and surface water. The
air quality of this country has improved. In this country, nearly 2.8% of national lands are
classified as a national park ("Austria Country Profile"). This country has diverse mineral
resources. Largest magnetite producer of this world is Austria. Sufficient amount of lignite

COUNTRY ANALYSIS OF AUSTRIA2
and iron ore and smaller amounts of wolfram, kaolin, graphite, antimony, dolomite, gypsum,
salt, talcum, and quartz are present in this country.
The market economy of Austria is well-developed with a high standard of living and
skilled labour force. The economy of this country is tied not only with the European Union
but also with the United States. The economy of this country contains a large scale service
sector, large industrial sector, and improved agricultural sector (Industries Journal 33.5). In
2018, the Gross Domestic Product of this country was 455.74 billion US dollars ("Austria |
Data"). The Gross Domestic Product value of this nation represents 0.74 % of the world
economy. In 1960, the GDP of this country was a record low of 173.93 USD billion US
dollars ("Austria | Data"). The present GDP of Austria is proof of the country’s economic
strength.
As a developed nation, the human development index of Austria is 0.908 in 2017
(AUSTRIA). This country ranked 20th among 189 other countries. Since 1990, the HDI of
Austria has improved to 0.908 from 0.795. In every sector of the human development index,
this country developed. The life expectancy of birth of this nation hiked by 6.2 years between
1990 and 2017, which refers that the expected year of schooling increased by 2.1 years and
the mean years of schooling enhanced by 3.5 years (AUSTRIA). Between 1990 and 2017, the
Gross National Income per capita of Austria hiked by about 43.8%. The GDP per capita
income of this nation is 47,290.91 US dollars in the year of 2017 (AUSTRIA).
Being a member of the European Union, Austria has access to do business with EU
members. With 29.4% of trade, Germany, the largest economy in the European Union, is the
biggest trading partner of Austria ("Invest In Austria | Invest In EU"). Austria’s second-
biggest trading partner is the United States. This nation is a part of the World Trade
Organisation. As a result of this, Austria does business with the WTO member countries.

COUNTRY ANALYSIS OF AUSTRIA3
This country has the best business location factors such as readily available skilled labours,
proper infrastructure and high quality of life and security.
Due to its geographical location as an intersection of Eastern and Western Europe,
Austria has an impressive amount of Foreign Direct Investment. The World Investment
Report of UNCTAD indicates that Austria is not any more capital exporter. The FDI inflows
of this nation declined from 9.6 billion US dollar in 2017 to 7.6 billion US dollar in 2018
("Austria and the IMF"). The government of Austria developed a consultation draft to
enhance transparency and certainty around FDI approval. The Austrian government are
modified its FDI policy to build a welcoming environment for foreign companies. Most of
the international companies are interested in investing in the technical activities, scientific
activities, construction, pharmacy, finance, manufacture of transport material, and insurance
sector ("Economy — Austria").
Austria is an attractive destination for expanding the business. The corruption rate of
this country is low as Austria is ranked 14th least corrupted country out of 175 nations. The
Global Competitiveness Report 2013-2014 referred that government official is priorities well-
connected foreign companies ("Austrian Culture - Core Concepts"). This situation is not
desirable. However, corruption is not a crucial issue for expanding business in Austria.
Political Situation and Stability:
The government of Austria follows the democratic system, which ensures the political
right and civil liberty of the citizen. Presently the government of this nation is stable.
Historically, the politics of Austria is controlled by coalitions formed by centre-right people’s
party and centre-left social democrats party. In 2017, a new right-wing political party, named
Freedom Party of Austria entered, in the coalition government of Austria. The negative
impact of this coalition government of Austria is slow progress on reformation and enhancing