EU Business Essay Example | Topics and Well Written Essays - 2250 words

EU Business - Essay Example Czech Republic companies and their government have been actively chasing foreign investments. All these activities led to several challenges and opportunities along with risks that were posed in Czech Republic. When foreign firms started entering Czech Republic, arious entry modes have been used. In the services sector the most preferred mode of entry was FDI or fully owned units while in the non-services sector joint ventures and licensing was equally popular along with FDI (Knight & Webb, 1997). A number of expatriates are found in Czech Republic which suggests that companies prefer to post their own people. There were apprehensions about the returns so low investment modes were preferred. Bureaucracy and the legal system needed modification. Bribery was rampant in Czech Republic. Tourism is a sector which is globally in boom and has led to high levels of employment as successful macro-economic stability has led to low unemployment figures in Czech Republic. The labor forces in Czech Republic are loyal and industrious and willing to participate with the management. They are also willing to work in teams. The education level is low in Czech Republic as the foreign firms encounter problems in finding personnel with appropriate skills in marketing and management. In 1997 other problems that affected the growth where finding a suitable location for office and warehouse. Even if they did manage to find the premises, the expenses were high and telecommunications and transport was difficult. The locals considered foreign competition as a threat rather than an opportunity for growth. In May 2004, ten new members were accepted in the European Union which had different economic histories and characteristics than the existing 15 members. Czech Republic was one of them with a substantially lower per capita income and lower employment rates (Schadler, 2004).