Assignment # 01_

Shifting Business From Asia To Europe

Country Risk Analysis

Instructor: Kashfah KhanChowdhury(Kdc)

INB-355, SECTION-2 Submission Date: 14th February,2015

Prepared By:

Md. Ferdous Khan Samuel-(111 0706 030)

1

Chinese car manufacturing company:

My company produce new car. For some reason I am thinking to shift my business from

Asia to Europe and in Europe I have 3 option for transfer my car manufacturing business.

and these 3 countries are 1. Hungary 2. turkey 3. Belgium

Comparison of 3 countries:

According to some research data, for to start new business Belgium is in the 14th position in

world ranking, Hungary is in 57th and turkey is in 79th position in world ranking.Among the

three country, technologically and infrastructurally Belgium is really upgraded. Though the

labour cost is comparatively high in Belgium rather than the other 2 country. But for to run

business financially and bureaucratically Belgium's position is strong other then Hungary and

Turkey. And also Hungary in that strong financially. Par/capita of Belgium is more than

double from Hungary. Legal condition is also friendly for to start a new business. So overall

this data is showing that Condition of Belgium is really good for starting a new business.

Name Rank GDP $ (billion) GDP Growth

(%)

GDP/Capita ($) Trade Balance as

% of GDP

Population

Belgium 14 507 0.1 37,800 -1.8 11,195,138

Hungary 57 131 0.2 19,800 1.3 9,897,247

Turkey 79 822 3.8 15,300 -7.1 74,932,641

Name Financial Position Political

Position

Infrastructural Condition Labor Cost

Hourly (EUR)

Technology

Belgium Rank world

40 34 17 38.27 14

Hungary

Rank world 58 77 39 6.94 49

Turkey Rank

world 51 109 51 4.61 54

2

Belgium: Perfect country for Shifting

Belgium is modern, open, and private-enterprise-based economy has capitalized on its central

geographic location, highly developed transport network, and diversified industrial and

commercial base. Industry is concentrated mainly in the more heavily-populated region of

Flanders in the north. With few natural resources, Belgium imports substantial quantities of

raw materials and exports a large volume of manufactures, making its economy vulnerable to

volatility in world markets. Roughly three-quarters of Belgium's trade is with other EU

countries, and Belgium has benefited most from its proximity to Germany. In 2013 Belgian

GDP grew by 0.1%, the unemployment rate increased to 8.8% from 7.6% the previous year,

and the government reduced the budget deficit from a peak of 6% of GDP in 2009 to

3.2%.Belgium is a constitutional, popular monarchy and a parliamentary democracy.The

judicial system is based on civil law and originates from the Napoleonic code. Belgium is

among the most highly industrialized countries in Europe. Its location is at the heart of a

highly industrialized region helped make it the world’s 15th largest trading nation in 2007. Its

main imports are raw material, machinery & equipments, chemicals, raw diamonds metals,

food stuffs, transportation equipments, oil products. Its main exports are machinery &

equipment, chemicals, finished diamonds, metal & metal products.

So, i think shift my Car manufacturing business from Asia to Europe Belgium is the best

option for me other then Hungary and Turkey.

3

Reference:

http://www.forbes.com/best-countries-for-business/list/#page:2_sort:1_direction:asc_search:

http://www.weforum.org/content/top-10-most-competitive-economies-europe-2

http://www.doingbusiness.org/rankings#