Commercial Guide

Commercial Guide

A country Commercial Guide is a great tool to use before any company chooses to enter a market. We decide to use the commercial guide to judge the barriers of entry to these countries below.  Barriers to entry will vary from country to country. Barriers to entry are anything that hinders entry or has an effect on limiting competition. Barriers to entry can be economic, procedural, regulatory, or technological factors. Most barriers to entry are put in place by countries to shelter existing firms from new entrants. This allow existing firms to have the upper hand over new entrants. Existing firms have all the power and will record greater profits. It might not seem fair to new entrants but all nation has the right to protect their national interest. Having a strong local economy is essential for the overall health of the nation.

• Switzerland- Currently not on commercial guide
• Netherlands- Barriers: No trade barriers, EU requirements have to be meet first. Challenges:  Exporters may need to adapt their products and documentation for the Dutch market.
• Belgium- Barriers: No trade barriers, EU requirements have to be meet first. Challenges: Huge debt crisis, debt is 107% of GDP. Companies could be taxed high because of Belgium’s debt reform.
• Austria- Barriers: No significant trade barriers. Austria represents a desirable, affluent pilot market for U.S.-made products and services. Challenges: Austria are regulated and require that a separate application be made for a business license and registration in the commercial register
• Poland- Barriers: Not as developed as other EU countries, limited purchase capacity and domestic consumption, inefficient commercial court system, rigid labor code, bureaucratic red tape, needs regulatory reform, and outdated tax system. Challenges: Needs to modernize road, railway, and internet network.
• Denmark- Barriers: No trade barriers, EU requirements have to be meet first. Challenges:  Consumers are very particular of what they buy. They only buy proven products. When it comes to business the Danish companies believe in long term relationship. Don’t use the Euro as primary currency. Danish Krone is 2.25% lower than the Euro.
• Italy- Barriers: Strong competition from local and other EU companies in all market segments, complex regulatory environment that lacks the transparency, clarity, and efficiency. Challenges: Heavy regulation on health, safety, and environmental products. 99.9% of all firms are family owned and make up 68 percent of Italy’s GDP.
• Spain: Barriers: No trade barriers, EU requirements have to be meet first. Challenges: competitions from foreign companies, adapting products to fit local markets, delays in reimbursements and slow economic recovery.
• Portugal- Barriers: Import Tariffs, EU requirements have to be meet first. Challenges: High unemployment, just came out of recession, tied to EU, competition from existing firms.
• Greece- Barriers: low trade barriers, EU requirements have to be meet first. Challenges: lack liquidity, competition from EU trading partners, EU suppliers has duty free status, oligopolistic industry sectors, low on payment index, heavily regulated business environment,