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D.A.V.V., Indore Institute of Management Studies: International Finance

The document provides an overview of the Dutch economy and international business environment. It discusses that Netherlands has a GDP of $850 billion and GDP per capita of $49,760, with key industries being services, industry, and agriculture. It also outlines Netherlands' major trading partners and imports/exports. The document concludes by stating that Netherlands' strategic location, business climate, infrastructure, and skilled workforce position it well for future international business prospects.

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0% found this document useful (0 votes)
44 views

D.A.V.V., Indore Institute of Management Studies: International Finance

The document provides an overview of the Dutch economy and international business environment. It discusses that Netherlands has a GDP of $850 billion and GDP per capita of $49,760, with key industries being services, industry, and agriculture. It also outlines Netherlands' major trading partners and imports/exports. The document concludes by stating that Netherlands' strategic location, business climate, infrastructure, and skilled workforce position it well for future international business prospects.

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INSTITUTE OF MANAGEMENT STUDIES

D.A.V.V., INDORE

2017-19
INTERNATIONAL FINANCE
MBA (FA) SEC-“B”

SUBMITTED TO :- SUBMITTED BY :-
Dr. YAMINI KARMARKAR MONAL KULHARA (64156)
SHUBHANGI TIWARI (64202)
ECONOMY OF NETHERLANDS
a developed nation
 Netherlands Country in Europe
(northwestern) Amsterdam, the capital, 
 Currency -Euro (EUR) = €1
 Fiscal year -calendar year
 Trade organisations -EU, WTO and OECD
 17 million inhabitants
 GDP per capita is roughly $48,860 which
makes it one of richest nations in the world
 flag
MACROECONOMIS OVERVIEW OF
THE COUNTRY
 GDP - $850 billion , 2018
 GDP rank - 18tH
 GDP growth - 2.5% ,2018
 GDP per capita - $49,760,2018
 GDP by sector - agriculture: 1.6%
- industry: 18.8%
- services: 79.6%
*BOP –
* Current account -surplus icreased to EUR 27.5 billion in the
fourth quarter of of 2018
* Service surplus - widened to EUR 5.1 BL. FROM 3.0 BL a year ago.
*Primary income source - rose to EUR 7.6 billion from EUR 3.5
billion.
*Goods surplus - narrowed to EUR 17.2 billion from EUR 18.6 billion a
year ago.
Netherlands exchange rate policy
and major MNCs
The Eurozone has never imposed exchange controls since the
introduction of the Euro. There are no restrictions as to the holding
of foreign currency in the Netherlands.
 The Euro follows a purely freely floating exchange rate regime.
 Netherlands Exchange Rate Data
 1 Euro equals = 78.46 Indian Rupee
 1 EUR equals = 1.13086 USD
 MAJOR MNCs -
 1 Royal Dutch Shell - Shell is not just the largest company in the
Netherlands by far – Forbes ranks it first in Europe and number five in the
world. 
 2 ING -ING is a multinational banking and financial services corporation
headquartered in Amsterdam
 3 Unilever
 4. Aegon -Aegon is a multinational life insurance, pensions and asset
management company headquartered in The Hague.
 5 Rabobank- Once unkindly labelled the farmers’ bank, Rabo is a
cooperative.
 6. Philips -Philips was started up in 1891 in Eindhoven with the production
of carbon-filament lamps – lightbulbs to us – and other electrical goods. 
major imports and exports
 Main industries- agriculture, oil and natural gas, metal
and engineering
products,electronic machinery and equipment, chemicals, petroleu
m, construction, microelectronics, fishing
 Exports - $528.2 billion
 Export goods - natural gas, machinery and equipment, chemicals
, fuels
 Main export partners  Germany 24.5% 
 Belgium11.1% 
 France 8.4% 
 United Kingdom 9.3% 
 Italy 4.2% (2015 est.)
 Imports - $429.5 billion
 Import goods -machinery and transport equipment, chemicals,
fuels,
 foodstuffs, clothing
 Main import partners- Germany 14.7% 
 China14.5% 
 Belgium 8.2% 
Membership of
organization
 The Group of Ten (G-10 or G10) refers to the group of
countries that agreed to participate in the General Arrangements
to Borrow (GAB), an agreement to provide the International
Monetary. Fund  (IMF) with additional funds to increase its
lending ability.
 The Multilateral Investment Guarantee Agency (MIGA) is
an international financial institution which offers political risk
insurance and credit enhancement guarantees
 The United Nations (UN) is an intergovernmental
organization that was tasked to maintain international peace and
security, develop friendly relations among nations.
 The World Trade Organization (WTO) is an intergovernmental
organization that is concerned with the regulation
of international trade between nations.
 The World Health Organization (WHO) is a specialized agency of
the United Nations that is concerned with international public health.
NETHERLANDS CONTRIBUTION
IN INTERNATIONAL TRADE

 Worldwide, the Netherlands has the seventh


largest trade surplus in the trade of goods.
 The country's main trade partners are
 Germany -US$158.9 billion (22% of
total Dutch exports)
 Belgium -$76.5 billion (10.6%)
 France -$58.8 billion (8.1%)
 United Kingdom -$56.7 billion (7.8%)
 United States -$31.2 billion (4.3%)
 The economic surplus in the Netherlands is almost entirely due
to its trade with the countries of the European Union.
 Because of the importance of trade and the impact of foreign
sales on the Dutch economy, the government is a staunch
supporter of global free trade
  The geographic location of the Netherlands and its highly
skilled and productive workforce has attracted numerous
international companies.
 By 2000, there were 6,400 foreign businesses with operations in the
kingdom.
 These companies employed 357,000 Dutch workers. In order to
encourage new investment and attract foreign companies.
 The country works through international organizations such as the World
Trade Organization (WTO) and the International Monetary Fund (IMF).
PROBABLE FUTURE IN
INTERNATIONAL BUSINESS

 The Netherlands is one of the 20th largest economies


in the world and is a leading global knowledge
economy.
 The strategic location at Europe’s front door
provides the perfect springboard into the European
market .

 In addition to having a stellar business climate, the


Netherlands offers an affordable cost of living and
an exceptional quality of life.
Prospects Supporting Future Investments in Netherlands are :-
  A strategic location in Europe
 A competitive fiscal climate
 A superior logistics and technology
infrastructure
 A conducive innovation environment
 An international business
environment
 A solid workforce
 An attractive quality of life

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