C M Y CM MY CY CMY K - Wirtschaftsmuseum · C M Y CM MY CY CMY K 5 EXPORTS AS THE DRIVING FORCE OF...

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C M Y CM MY CY CMY K

www.go-international.at

© Owner and publisher:Österreichisches Gesellschafts- und Wirtschaftsmuseum, Vogelsanggasse 36, A-1050 Vienna, AustriaPhone: 01/545 25 51, Fax: 01/545 25 51-55, e-mail: [email protected], Website: http://www.wirtschaftsmuseum.atCommissioned by Austrian Federal Economic Chamber, Education Policy Department., Dr. Michael Landertshammer,http://wko.at/bildung, Wiedner Hauptstrasse 63, A-1045 Vienna, AustriaPhone: 05 90 900, e-mail: [email protected], Website: http://wko.atISBN: 3-902353-33-3

Produced by: Paul Gerin Druckerei, Wienerfeldstrasse 9, A-2110 Wolkersdorf, Austria Edition 2005

Dear Teachers and Pupils!

Dr. Christoph LeitlPresident of the Austrian

Federal Economic Chamber

Dr. Martin BartensteinAustrian Federal Ministerof Economics and Labor

The Austrian export industry has been incredibly successful inrecent years. In 2004 our country even captured the title ofEuropean Export Champion!

Innovative business owners and employees who understandglobalization as an opportunity and a challenge have been crucialto our success. The foundation for this success is laid in theeducation and training of young people.

It will soon be up to today’s pupils to make Austrian businessessuccessful on world markets and thereby safeguard jobs, ourhigh standard of living, and our strength as a business location.

We wish you much fun and success in exploring this excitingtopic for the future: “Austria’s Prospects on World Markets.”


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1

THE FUNDAMENTAL PRINCIPLESOF AUSTRIAN ECONOMIC POLICY

The Magic Polygon

A national economy has various important economic policy goals. A foreign tradebalance means that expenditure for imports is covered by income from exportsover an extended period of time.

Social PartnersAustrian Federal EconomicChamber, Austrian Federationof Trade Unions, Federationof Austrian Industry,Chamber of Labor

Enterprises

AustrianNational Bank

EuropeanCentral Bank

FederalGovernment

Population

InternationalInstitutions

OECD, IMF, IBRD,GATT, WTO

InternationalAgreements

EnteD,

Enteeral OE

ment

Foreigntrade balance

Economicgrowth

High levelof employment

Monetarystability

Quality of lifeEnvironment

Justdistribution

of income andwealth


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2

AUSTRIANEXPORTS AND IMPORTS

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004Source: Austrian National Bank

100908070605040302010

0

Exported Goods

Imported Goods

Exports and Imports of Goods, 1994 to 2004in € billions


Current Account Balancein € billions

Until 2001, more cash flowed abroad from the import of goods than into Austriafrom the export of goods. For the past three years, these cash flows have almostreached equilibrium. Besides traffic in goods and services, the current accountbalance also records flows of income and transfer payments between Austria andother countries.

+ 0.7 + 0.8

– 2.7

– 4.5 – 4.2

– 5.8– 4.7

– 6.3– 5.4

– 4.1

– 1.2

Surplus

Deficit


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3

AUSTRIANIMPORTS AND EXPORTS OF GOODS

Source: Statistik Austria, Austrian Federal Economic Chamber

Austrian Imports and Exports by Goods Category in 2004as a % of total imports/total exports

The structure of Austrian exports has continuously improved in quality. In 2004,the economy exported € 40 billion worth of machines and vehicles and € 30 billionworth of semi-finished and finished products.

Exports totaling€ 89.8 billion

= 100 %

Machinesand vehicles

Semi-finishedand finished

goods

Chemicalproducts

Food,beverages,

tobacco

Raw materials

Fuels,energy

Other

33.3

9.1

44.9

0.63.23.25.7

30.4

10.3

5.6

40.4

3.6

9.2

0.5

Imports totaling€ 91.1 billion

= 100 %


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4

EXPORTS AS THEDRIVING FORCE OF ECONOMIC ACTIVITIES

Austrian Export Rates, 2004 v 1994Exports of goods as a % of GDP

Source: Austrian National Bank

Exports of goods account for nearly 40 percent of the Austrian gross domesticproduct. If exports of services are added to this figure, this share rises to wellover 50 percent. In other words, more than half of the goods and services producedin Austria are sold abroad.

37.8 %

22.1 %

2004

1994


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5

EXPORTS AS THEDRIVING FORCE OF EMPLOYMENT

Gainfully Employed Persons in Austriain thousands

Source: Statistik Austria2004: Estimate, 1)Defined as in Labor Force Plan. Registered unemployed are not included.

The export industry is a crucial mainstay of economic activities. It allows theeconomy to grow and in so doing, helps to preserve existing jobs and create newones, especially in export-oriented sectors and companies. Every one percentincrease in exports generates about 10,000 jobs directly and indirectly.

Male Female

1)

1961

1971

1981

1991

2001

2004

1951

3,301

3,081

3,342

3,499

3,738

3,700

3,230

= 100,000 women= 100,000 men


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EXPORTSOF AUSTRIAN INDUSTRY

Source: Austrian Federal Economic Chamber

From every € 1,000 in sales in 2003,exports accounted for the indicated amounts in the following industries

Exports by Austrian industry indicate how significant the export sector is foreconomic growth and employment in a small open economy such as Austria’s.Many businesses earn the major part of their sales through exports.

Motor vehicles

Metal

Machines

Textile and leather

Optics, medical andmeasurement technology

Plastics

Electronics

Chemicals

Wood

Consumer products

Glass and ceramics

Paper

Foodstuffs

€ 910

€ 760

€ 760

€ 700

€ 670

€ 660

€ 640

€ 580

€ 500

€ 400

€ 340

€ 290

€ 130


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AUSTRIAN FEDERAL ECONOMIC CHAMBERAND ITS PROMOTION OF INTERNATIONALIZATION

Work Areas of the Austrian Federal Economic Chamber

Source: Austrian Federal Economic Chamber

Many Austrian companies utilize the services of the 100 bases of Austrian Tradeworldwide. As a sub-organization of the Austrian Federal Economic Chamber,Austrian Trade provides support, advice and coaching to Austrian companies onall foreign trade issues. Austria currently has about 24,000 exporting companies.One goal of the “go international” initiative is to increase this number to 30,000.

WKOAustrian Federal

Economic Chamber

AWOAustrian Trade

70 foreign trade offices, 30 marketing offices

AWOInformation

Publicationson business

opportunitiesand markets,

worldwidepresentationof Austriancompanies

AWOCoaching

Individualcoaching inAustria and

abroad

AWOEvents

Events inAustria

andabroad

Consulting and coaching onTransfers ofinnovation

andtechnology

Export ofservices

Foreigninvestments

Purchasingprocedures on

foreignmarkets

Export ofgoods


7


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AUSTRIAN FOREIGN TRADEWITH THE EUROPEAN UNION

Austrian Foreign Trade in 2004in € billions

Austria’s key trade partners continue to be primarily neighboring countries,especially Germany. Foreign trade between Austria and the countries of Centraland Eastern Europe is growing at a fast pace. Many of these CEE countriesacceded to the European Union in 2004.

Source: Statistik Austria, Austrian Federal Economic Chamber

Germany

Italy

France

GreatBritain

Hungary

CzechRepublic

Spain

Slovenia

Nether-lands

Belgium,Luxemburg

Poland

Slovakia

Sweden

Denmark

Ireland

Finland

Greece

BalticStates

Portugal

Cyprus,Malta

39.129.0

6.27.7

3.63.8

1.83.8

2.63.3

2.92.8

1.42.2

1.22.0

2.61.7

1.81.6

1.11.6

1.81.4

1.20.9

0.50.6

1.10.6

0.70.5

0.10.5

0.10.3

0.50.3

>00.1

Exports

Imports


8


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9

AUSTRIAN FOREIGN TRADEBY REGION AND ECONOMIC AREA

Austrian Foreign Trade in 2004in € billions

Austria conducts about three quarters of its foreign trade with the EuropeanUnion, but other major economic areas such as China and India are gainingsteadily in importance. Six percent of all Austrian exports go to the USA despitethe strong euro.

Source: Statistik Austria, Austrian Institute of Economic Research, Austrian Federal Economic Chamber

• ASEAN – Association of Southeast Asian Nations: Brunei, Indonesia, Cambodia, Laos, Malaysia, Myanmar,Philippines, Singapore, Thailand, Vietnam

• EFTA – European Free Trade Association: Iceland, Liechtenstein, Norway, Switzerland• CIS – Commonwealth of Independent States: Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrghizstan,

Moldova, Russia, Tajikistan, Turkmenistan, Ukraine, Uzbekistan• NAFTA – North American Free Trade Agreement: Canada, Mexico, USA• Southeastern Europe: Albania, Bosnia-Herzegovina, Bulgaria, Croatia, Macedonia, Romania, Serbia-Montenegro

EU

ASEAN,China,Japan

NAFTA

EFTACIS

SoutheasternEurope

Arab countriesin Asia and Africa

Central andSouth America

Australia andOceaniaOther

countries

3.03.3 0.60.1

1.10.8

6.3

3.4

4.8 3.1 2.0 2.3

3.0

5.4

3.6

1.7

0.8

0.7

64.6 70.3

Total Exports€ 89.8 billion

Total Imports€ 91.1 billion


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THE INFLUENCE OFEXCHANGE RATES ON FOREIGN TRADE

1.40

1.35

1.30

1.25

1.20

1.15

1.10

1.05

1.00

0.95

0.90

0.85

0.80

Development of the US Dollar/Euro (ECU) Exchange Rate1994 to 2004


You receive MOREthan one US dollar forone euro (ECU).

If the euro loses value against other currencies, Austrian goods become cheaperfor foreign customers. Austria can export more but imports become more expensive.If the euro gains in value, the situation is reversed: Exports become more expensivewhile imports become cheaper.

You receive LESSthan one US dollar forone euro (ECU).

You receive EXACTLYone US dollar forone euro (ECU).


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11

ACTIVE AND PASSIVEDIRECT INVESTMENTS


109876543210

Passive Annual Direct Investments

Annual Direct Investments, 1994 to 2004in € billions


60

50

40

30

20

10

0

Total Direct Investments, 1994 to 2004in € billions

Active direct investment sets capital flowing from Austria to other countries.Austria has become an especially important investor in the countries of Centraland Eastern Europe. As a business location with many advantages, Austria alsoattracts foreign capital, referred to here as passive direct investment. This capitalgoes towards building up businesses and creating jobs.

Active Annual Direct Investments

Total Active Direct Investments

Total Passive Direct Investments


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12

THE ADVANTAGES OFAUSTRIA AS A BUSINESS LOCATION

Austria’s Advantages as a Business Location

It is up to investors to decide whether to locate their enterprises in Austria or tokeep or expand existing enterprises in the country and thus assure the securityof domestic jobs. What they ultimately decide depends on a number of factors.The willingness of businesses to innovate is one factor that plays a crucial partin these decisions.

Innovation –Research & Development

Social Partnership –Consensus-based Approachto Solving Labor Conflicts

Market Proximity to Eastern Europe –Geographic Location in Central Europe

Social and Political Stability –Economic Promotion and Development System –

Basic Tax Conditions

Infrastructure, Quality of Life, Economic Situation,Environment, Security; Education, Continuing Education,

Mobility, Motivation, Employee Creativity

Econ

DIR

EC

T I

NV

ES

TM

EN

TS

em –

WIL

LIN

GN

ES

S T

O IN

VE

ST


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RESEARCH AND DEVELOPMENTIN AUSTRIA

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004Source: Austrian Federal Economic Chamber

Expenditure for Research and Development, 1994 to 2004as a % of GDP

Source: Austrian National Bank – GB, I: 2002; NL, S: 2001.

Expenditure for Research and Development in the EU, 2003as a % of GDP

Intensive research and development and the new products and productionprocesses resulting from it form the basis for increased exports, economic growthand employment in a national economy. R&D is essential to the competitivenessof domestic enterprises in a global economy.

1.5 1.6 1.6 1.7 1.8 1.9 2.0 2.1 2.2 2.2 2.3

Germany

France

Belgium

Finland

Austria

Sweden 4.3

3.5

2.5

2.3

2.2

2.2

Netherlands 1.9

Great Britain 1.9

Slovenia 1.5

Czech Replublik 1.4

Italy 1.2

Ireland 1.1

Hungary 1.0

Estonia 0.8

Lithuania 0.7

Poland 0.6

Slovakia 0.6

EU-15 ø 2.0


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CAREER OPPORTUNITIESIN THE EXPORT INDUSTRY

Career opportunities as a result of...

The many Austrian companies selling products abroad help to keep existing jobssecure and to create new ones. The export industry has good career prospects forindividuals with specialized expertise and a suitable personality.

Career Opportunities

Specialized expertiseas regards

• export industry• foreign languages• information technology (IT)• communication technology (CT)• marketing• science

Personality profileas regards

• mobility• creativity• innovativeness• sense of personal responsibility• intercultural skills• adaptability

Supplemental qualificationsthrough

foreign stays and work experience

• Exchange program for secondary students e.g. Leonardo• Exchange program for university students e.g. Erasmus• Foreign studies, training placements abroad• Temporary work at companies

Basic and continuingeducation and training

throughlife-long learning

• WIFI (training organization of Economic Chamber) WIFI offers: Language courses; seminars; management courses of study; in-house company training; courses of study ending in a diploma for export, marketing and sales. www.wifi.at


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