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European Corporate Strategy For Market Entry Mode

Why Bulgaria?

Based on facts, Bulgaria has contributed a lot of supreme efforts in order to improve the economic and finance stability of the country’s background. The significant shift of processing in innovations led to the realizing the joining of Republic of Bulgaria in the European Union (EU) on January 1st, 2007. Passing over Council for Mutual Economic Assistance’s (COMECON) failure of the market in 1989 and hyper inflation in 1996, the economy of Bulgaria continues to advance. In 2005, GDP growth (%) was 5.5 and in that orders 6.0 forecasted in 2006 (Bulgarian Invest Guide, 2006) (see appendix1).
Bulgaria, as a choice of Eastern European country, has one of the most comprehensive market growths. Further innovations and foreign activities will make the entire Balkans region a European marketplace for exchanges and investments. Although, with the purpose of improving the country’s macroeconomic modifications to increase the competitive advantages of its enterprises, Bulgaria maintains good relationships with its boarders` neighbors- Greece, Macedonia, FYROM, Romania and Turkey (Foreign Direct Investments in the Balkans, 2002). As a result, thus creates an EU-SME right of entry. Also, the main emphasizing benefits of Republic of Bulgaria are the lowest production cost and assessments in the European Market Economy, which together put forward the high quality level fabrication at low workforce asking price. All these donate to favorable atmosphere for foreign modernizations and funds (Strategy for Bulgaria, 2005).
There are many reasons to invest in Bulgaria. From fiscal point of view, the business tax rate is 15% and 0% in cases of extreme unemployment, in 2005. Also, there are 30% machinery and equipment annual reduction and 50% for software&hardware once. In addition, € 50 millions financial support exists for investment plans and the foreigner shareholder is discharged of paying the VAT, if trading in venture mission estimated over €5 millions...