The overall attractiveness of Poland as potential Greenfield investment site.
Poland is a country located in Eastern Europe, (Heritage,2012), it is bordered by Germany, Belarus, Russia and Ukraine. It is the 9th largest country in Europe and has a population of 38.1 Million. Once a member of the Soviet Union, Poland is now a democratic Parliamentary Republic and has a president as head of state. It has been part of the EU since 2004 (CIA, 2012)
Poland is an exceptional example of a country going from a communist, state controlled economy, to a free capitalist market. It is considered to be a high-income economy with $12’480 per capita (World Bank, 2011), and has had a steady growth rate since 1990. Poland is the only country to have avoided falling into recession during the last economic crisis, although it has contracted slightly since 2008. The large domestic market has attracted a high amount of foreign direct investment (FDI) and according to a report by Ernst and Young is ranked 7th in the world on an investment attractiveness survey (Global Edge 2012). It has made many advances towards liberalising the growth of a free market. Ever since the fall of Communism in 1989, the economy has gone through a transformation to become more like the states in the rest of European community. When the government stopped regulating prices, eliminating consumer and producer subsidies and privatising Small-Medium Enterprises, it caused an economic shock therapy (Sachs, 1994). The Heritage foundation has ranked Poland 64th on the economic freedom scale, above the world average (Heritage, 2012), and key factors to this is a well-timed fiscal stimulus and effective use of EU transfer funds (Global Edge, 2012).
The past 20 years have seen the Polish government work under a democratic umbrella, and the transition from being a communist country to a Parliamentary Republic has given the country more...