group_5_hungary's_trade_with_the_world_and_it's_asociation_with_eu

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Hungarys Trade With The WorldHungarys Trade With The World

and Its Association With EUand Its Association With EU

Ritika Sharma 18

J. Rashmiranjan Ray 24

Pallavi Jauhari 33Aakash Sablani 49

Monika Lakhmani 53

Niwas Kumar 57


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INVESTMENT POLICIESINVESTMENT POLICIES

The attraction of the quite favorable Hungarian

investment climate lies mainly in the following

factors:

relatively well developed infrastructure; modern market economy;

political and financial stability;

low rate of inflation;

highly skilled and talented workforce;

favorable investment incentive system.


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ITDITD

It is an agency responsible for facilitating

domestic as well as foreign investments.

It was founded by the Hungarian government In

order to encourage investments.Hungary informs foreign investors on tender

possibilities and state subsidies.

State subsidies include tax benefits, direct

financial subventions and many other methods

for increasing the profitability of the investment.


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INVESTMENT INCENTIVESINVESTMENT INCENTIVES

2 TYPES OF INVESTMENT INCENTIVES:

Government and regional Incentives

Tax Incentives


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GOVERNMENT AND REGIONALGOVERNMENT AND REGIONAL

INCENTIVESINCENTIVES The category contains various types of incentives,which are being offered to promote certain

economical or social goals:

Research and development. Training.

Employment.

Environment protection.

Investments.


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INVESTMENT TAX INCENTIVESINVESTMENT TAX INCENTIVES

Investment tax incentives are available if the value of the

investment exceeds HUF 3 billion.

In case of towns or villages the minimum amount of

investment shall be HUF 1 billion.

While in case of food production, environmental

protection, internet service ,research or development

related investments the minimum amount shall be HUF

100 million.

The Ministry of Finance determines the level of the taxallowance, Investment tax incentives should be longer

than nine years from the conclusion of the investment, or

fourteen years from the request for incentives.


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Import and ExportImport and Export


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Hungary's economic policies were changed with the change

in the government in year 1990 and the economy became

more liberal and open.

Hungary is a most favorable country for business because

of its emerging economy.

Cheap food items and textiles are two its main exportitems that are exported to many countries of the world.

The high-end products manufactured in the country are in

great demand throughout the world


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Exports - commodities:

machinery and equipment 61.1%

other manufactures 28.7%food products 6.5%

raw materials 2%

fuels and electricity 1.6%

Exports - partners:

Germany 25.54%

Italy 5.67%, UK 5.41%

France 5.37%,

Romania 5.28%Slovakia 4.97%

Austria 4.52%


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Year Exports Rank % change Date of

information

2004 $42,030,000,000 37 33.85 2003 est

2005 $54,620,000,000 36 29.95 2004 est

2006 $61,750,000,000 36 13.05 2005 est

2007 $67,990,000,000 37 10.11 2006 est

2008 $87,770,000,000 37 29.09 2007 est

2009 $106,600,000,000 35 21.45 2008 est

2010 $82,490,000,000 35 -22.62 2009 est


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Imports partners:

Germany 25.05%,China 8.56%,

Russia 7.3%,

Austria 6.08%,

Netherlands 4.73%

France 4.51%Slovakia 4.14%

Italy 4.13%

Poland 4.07%

Imports - commodities:

machinery and equipment 50%,

fuels and electricity 11%,

food products,

raw materials


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Year Imports Rank % change Date of

information

2004 $46,190,000,000 31 36.25 2003 est

2005 $58,680,000,000 31 27.04 2004 est

2006 $64,830,000,000 31 10.48 2005 est

2007 $69,750,000,000 34 7.59 2006 est

2008 $86,880,000,000 31 24.56 2007 est

2009 $106,500,000,000 33 22.58 2008 est

2010 $75,930,000,000 33 -28.70 2009 est


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Hunga r y H un ga r y a nd t h e E u r op ea na n d t h e E u r o p e a nU n i o nU n i o n


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Hungarian European Union membership referendum, 2003.

The Campaign: Strong support, main opposition party Fidesz

cautioned.

The Results:

Electorate- 8,042,272.

Spoilt Votes- 17,998.

Turnout(%)- 3,666,715 (45.6).

For(%)- 3,056,027 (83.8).

Against(%)- 592,690 (16.2).

The Reactions: Concerns over low turnout questioned the validit

of the referendum.

Hungary became a member of the EU on 1st May 2004.


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H u n g a r y a n d t h e E u r o

Before the economic crisis.

The impact of the crisis.

The Interim government.

The

2010 Election.


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Co n c lu s i o n

Change of ideology from Communism to Parliamentary republican in 1990.

Main exports: Cheap food items and textiles.

Recently ventured into Luxury automobiles, pioneering information technology,

recreational and leisure tourism, etc. Major FDI is made into competitive processing industry (automotive industry,

electric machinery production, chemical industry) and into the service industry.

Government expenditure and contradictory license policies have weakened

its economy in recent years.

Recovering steadily from the 2007-2008 slowdown.

Hopefully, Hungary should join the Eurozone by 2014.


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THANK YOU !

group_5_hungary's_trade_with_the_world_and_it's_asociation_with_eu

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