Question

My selected country is Poland.

Historical Issues and Globalization

1. Using your selected country, identify two significant multinationals in that country that are present in the market.
2. Explain why those multinationals go into those countries. What challenges did they face?

Touch on International Political Economy

1. Briefly explain how your selected country has been affected by global trade blocks.
2. Explain how your selected country participates in these world organizations: WTO, IMF, World Bank, BFIS, IDB

Thank you.

Answer 1

1)

Some of the major historical issues of Poland are:

· 19th Century

· Greater Poland Uprising begins

· The second Treaty of Tilsit was signed.

· Adoption of Constitution of the Kingdom of Poland.

· The National Museum of Kraków was founded.

· 20th century

· Signing of the Act of 5th November between Germany and Austria

· Signing of the Treaty of Brest-Litovsk with the Soviet Russia

· Poland regains independence with the formation of the Second Polish Republic following the Armistice of 11 November 1918

· Polish–Ukrainian War begins, ends in 1919

· Polish–Soviet War begins

· The Fall of Warsaw

· Zagaje massacre

· End of World War II in Europe

· Signing of German–Polish Border Treaty

· 21st century

· Signing of the Treaty of Accession

Globalization

Before World War II, Poland was a free-market economy based largely upon agriculture but with a few important centres of manufacturing and mining. From the mid-1970s, Poland struggled with limited growth because of antiquated industrial infrastructure and government subsidies that masked inefficient production. In late 1980s, it suffered from an economic crisis due to deficit and hyperinflation brought and with the fall of communism, the Polish economy became increasingly involved in the market-oriented global economy. Now, Poland rank 27th in the ranking of the most globalized economies in the world.\

2)

1. Volkswagen AG (German: [ˈfɔlksˌvaːgn̩]), known internationally as the Volkswagen Group, is a German multinational automotive manufacturing company.

2. Biedronka is the largest supermarket chain in Poland. It is owned by he Portuguese group Jerónimo Martins.

3. Asseco Poland SA is one of the largest corporations in the technology sector quoted on the Warsaw Stock Exchange. It was established in 1991 and provided computer software to the banking industry.

3)

Poland became increasingly involved with international economic and political organizations. It joined Council of Europe in 1991 and became member of the WTO in 1995 and in 1996 it joined the Organisation for Economic Co-operation and Development. In 1999, it gained membership in North Atlantic Treaty Organization. Poland is a member of the European Union (EU) since 1994 and fully became its part in 2004.

For the past 3 decades, Poland has experienced only growth in terms of GDP and this remarkable achievement has not been missed by investors and it has increased the level of confidence and stability in Poland which attracts MNCs to invest in Poland. Poland is in the 5th position in the ranking of all European countries perceived as the best places to make a new investment. Poland has also developed a lot in terms of infrastructure, accessibility and telecommunication. Poland is offering one of the largest in the region increase of the revenues and thus, MNCs go in countries like Poland due to strong and attractive consumers market, strategic location and well educated workforce.

4)

Trading blocks are groups of countries who form trade agreements between themselves. Trading blocks can include free trade areas, custom union and single market.

Trading blocs has benefited Poland in enabling free trade between geographically close countries. This can lead to lower prices, increased export potential, higher growth, economies of scale and greater competition. It has seen the largest increase in GDP per capita (more than 100%) both among the former Eastern Bloc countries, and compared to the EU-15 (around 45%). It has had uninterrupted economic growth since 1992, even after the 2007 financial crisis.

5)

POLAND & WTO

Poland became member of WTO on 1 July 1995. Goods schedules for Poland include those under its own name and others under the European Union. A new WTO report on the trade policies of Poland says that real GDP in Poland has gone up by one quarter above pre-transition levels.

POLAND & IMF

The International Monetary Fund has existed since 1945, while it has been operating on a permanent basis since 1947. Including Poland, IMF has 180 memebers. Poland has been a member of the IMF since 1986, at which time Poland received 1.8 billion SDR units. In 1995, Poland was able to repay its debts incurred in international institutions, before becoming a full member of the IMF.

POLAND & World Bank

The World Bank has operated since 27th December 1945 and Poland acceded to the World Bank (WB) in 1986. 6. The President of the National Bank of Poland represents the country in the meetings of the WB. From 1990 until 1996, Poland received funds from the World Bank to assist in the transformation of Poland. Today, Poland's function is gradually starting to comply with the European Investment Bank.

POLAND & BFIS

BFIS stands for Banking, Finance, Insurance and Securities. Foreign direct investment in the Polish banking sector has increased significantly. At the end of September 2003, foreign banks had a stake of approximately 77% in the Polish banking sector and controlled about 67% of total bank assets. Poland has favorable labor market developments and strong consumer confidence with quite strong credit demand. The banking system of Poland is characterized by high stability and resilience. In 2018, 60 insurance companies were operating on the insurance market in Poland.

POLAND & IDB

The IDB joined 14 other organizations, including all 68 agencies of the United Nations, in Katowice, Poland, at the United Nations Climate Change Conference (COP24), to launch a multi-organization effort at “walking the talk