Czech Republic
International Business Project: The Czech Republic
International Business Project: The Czech Republic
Introduction
The Czech Republic is a small, landlocked country located in Central Europe, southeast of Germany,
bordered by Austria, Germany, Poland, and Slovakia. Slightly smaller than South Carolina, the Czech
Republic covers 78.866 square kilometers (sq km): 77,276 sq km of land and 1,590 sq km of water.
Following the First World War, the closely related Czechs and Slovaks of the former Austro
Hungarian Empire merged cultures to form Czechoslovakia. During the interwar years, the country s
leaders were frequently preoccupied with meeting the demands of other ethnic minorities within the
republic, most notably the Sudeten Germans ... Show more content on Helpwriting.net ...
The Czech Republic became a member of the European Union (EU) on May 1, 2004. Through the
course of the accession process, most barriers to trade in industrial goods with the EU have been
eliminated. The process of accession had a positive impact on reform in the Czech Republic, and
implementation of EU directives and regulations continues. The U.S. Department of Commerce
Country Commercial Guide for the Czech Republic summarizes the economic trends and outlook this
way:
The principal industries are motor vehicles, machine building, iron and steel production,
metalworking, chemicals, electronics, transportation equipment, textiles, glass, brewing, china,
ceramics, and pharmaceuticals. The main agricultural products are sugar beets, fodder roots, potatoes,
wheat, and hops. As a small, open economy in the heart of Europe, economic growth is strongly
influenced by demand for Czech exports and flows of foreign direct investment.
Heavy industry received major economic support during the 1950s, but central planning resulted in
waste and inefficient use of industrial resources. Although the labor force was traditionally skilled and
efficient, inadequate incentives for labor and management contributed to high labor turnover, low
productivity, and poor product quality.
The Czech koruna (crown) became fully convertible for most business purposes in
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