1. If you were a consultant for Tesco, how would you advise Tesco to deal with the new tax? 2. Would this new tax be enough for you to advise the company to end business in Poland? 3. Does the fact that this regulation is specifically targeted at foreign-dominated industries and businesses create concern for future regulations should you choose to continue operations in Poland?
1. If you were a consultant for Tesco, how would you advise Tesco to deal with the new tax? 2. Would this new tax be enough for you to advise the company to end business in Poland? 3. Does the fact that this regulation is specifically targeted at foreign-dominated industries and businesses create concern for future regulations should you choose to continue operations in Poland?
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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please help me with the 3 questions. Very simple answer needed and no word instructions.

Transcribed Image Text:In the International Poland
Spotlight
Poland is located in Central Europe and is bordered by capitalistic economy with privatization and economic lib-
Germany, the Czech Republic, Slovakia, Ukraine, Belarus, eralization. The country's economic success following the
and Lithuania. The Baltic Sea is located to the northwest. fall of the Soviet Union was largely attributed to the gov-
Slightly smaller than New Mexico, the country's terrain ernment's success at privatizing most of the small and
is largely flat with mountain ranges along its southern medium state-owned companies and encouraging foreign
border. Its climate is relatively cool, with moderately direct investment. Poland's major difficulties lie in
severe winters and mild summer temperatures. Poland's its somewhat deficient infrastructure, its rigid labor codes,
natural resources include coal, sulfur, copper, natural gas,
silver, lead, salt, amber, and arable land."
Poland's population, estimated at 38,562,000, has
remained steady for the last several years. Poland, with a
median age of 40 years old, has an older-than-average You Be the International
population. The country is essentially entirely made up of Management Consultant
native Poles. Immigrants do not comprise a significant
proportion of the population. Poland has no citizenship Tesco, a multinational grocery and general merchandise
by birth; instead, citizenship is awarded by descent, which retailer, operates over 6,000 stores around the world and
requires both parents to be citizens of Poland. The coun- 442 stores in Poland. Tesco has a large online presence
try is almost exclusively Roman Catholic."
Poland's GDP stands at US$545 billion, or US$24,952 markets. The company has enjoyed considerable success
per capita. Unlike most of Europe, Poland has seen years across the world but has faced some recent difficulty with
of steady economic gains. In 2015, the economy expanded
at 3.5 percent." Poland was one of the only countries in
the European Union to avoid a recession during 2008- to increase revenues to pay for various initiatives, includ-
2009: The government of Prime Minister Donald Tusk ing the proposed imposition on large retailers of a
steered the Polish economy through the economic down- 1.9 percent tax on gross revenue. This tax is targeted at
turn by skillfully managing public finances and adopting "foreign-dominated industries" like supermarkets and
controversial pension and tax reforms to further shore up banks. Moody's estimates that this new tax could cost
public finances. Once a largely agricultural nation, the Tesco as much as 3.5 percent of earnings."
country's economy has transitioned to one based primar-
ily on industry (41 percent) and services (56 percent).
The labor force, with 18.29 million people, ranks 34th in 1. If you were a consultant for Tesco, how would you
the world in size." Poland's main export partners include
Germany, the UK, the Czech Republic, France, Italy, the
Netherlands, and Russia. Machinery and transportation
equipment, intermediate manufactured goods, miscella-
neous manufactured goods, foodstuffs, and live animals
are all major exports.
Poland has adopted a republic form of government. It
was one of the first ex-communist countries to embrace a
a burdensome commercial court system, its extensive
government red tape, a lack of energy mix, and its
burdensome tax system.
and handles online orders for customers in its various
its Polish investments.
The Polish government has recently announced a plan
Questions
advise Tesco to deal with the new tax?
2. Would this new tax be enough for you to advise the
company to end business in Poland?
3. Does the fact that this regulation is specifically
targeted at foreign-dominated industries and
businesses create concern for future regulations
should you choose to continue operations in
Poland?
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