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International Business 2012 1
GeorgiaBY:
Mrugank ShethAnkit ModiVivek Sahay
International Business 2012 2
Presentation Agenda
Introduction
Current Situation
Potential Industries
International Business 2012 3
Latest War with Russia August, 2008
228 Civilians and 160 Militaries killed, 110 000 persons displaced
Civil damage 1 billion USD (8% of GDP)
International Business 2012 4
US Support for War
International Business 2012 5
Business Scenario
• Economic Positions• Incentive• India
Sectors• Hydro Power• Tourism• Logistic and Shipping• Banking and Finance• Infrastructure
International Business 2012 66
RussiaUkraine
AzerbaijanKazakhstan
TurkeyRomania
ItalyBulgaria
FranceHungary
LatviaGEORGIA
EstoniaUK
USA
134133
10776
7468
6459
4843
3832
1210
5
Economic Freedom Index
Source: The Heritage Foundation
Bertelsmann Transformation Index
TurkmenistanUzbekistan
BelarusAzerbaijan
RussiaTajikistanMoldova
KyrgyzstanKazakhstan
ArmeniaUkraineGeorgia
LithuaniaLatvia
Estonia
121117
1109998
8887
7776
5655
2317
102
Source: ForbesSource: Bertelsmann Stiftung , 2008 (Rank out of 125 countries)
Economic Position
Source: UNCTAD
Hong Kong, ChinaBulgaria
IcelandMalta
BahamasJordan
SingaporeEstoniaGeorgia
LebanonGuyanaBahrein
BelgiumGambiaPanama
MongoliaTajikistan
CyprusMoldova
Egypt
1234567891011
1314151617181920
2345
876
915
1320
121011
161918
2427
31
2006
2007
Inward FDI Performance Index
The Best Countries for Business
Hong KongIrelandEstoniaTurkey
LithuaniaPoland
LitvaGeorgia
AzerbaijanArmenia
Russia
91417
41424345
6487
94103
210
3233
3068
8263
86
2007 2009
International Business 2012 7
Achievements
Lowest corruption for developed nation
29th rank in economic freedom
Upgraded rating from S&P and Flitch
4th least tax miserable industry
Best clearance system 16th rank
6.7% - 6.8% y-o-y GDP growth rate
Geopolitical importance
International Business 2012 8
GDP
Source: Department of Statistics of Georgia, Ministry of Finance of Georgia
Nominal GDP (US$bn) Real GDP growth, y-o-y (%)
ALL RESULTED Rapid Growth
Source: National Bank of Georgia, International Monetary Fund
Net FDI as % of GDP
• Business and tax registration merged into one simple process
• Time requirements reduced (30 days 1 hour)
• Paper work reduced (documents 7 2 documents)
• Costs reduced (costs 2160 GEL 160 GEL)
International Business 2012 9
Recent Trade Relations
Intergovernmental Commission on Trade and Collabration 2010
Cooperation in the fields of Socioculture 2010
Cooperation in the fields of Science and Technology 2010
Avoidance of Double Taxation and the Prevention of Fiscal Evasion 2011
Bilateral trade increase from US $ 42.41 million during 2004-05 to US $ 115.39 million in 2006- 07
2011, bilateral trade stood at US$ 74.62 million, Favouring India
International Business 2012 10
Hydro Power
• Georgia has 26,000 rivers and a potential for 15,000 megawatts of hydroelectricity.
• UNDP & German Development Bank provided 5 million euro Georgia Renewable Energy Fund
• 10 existing and 10 in making (worth $3.5billion valuation)
International Business 2012 11
Tourism• Some countries attract one
instantly. Georgia seduces you the moment you set foot on its soil—Kalpana Sahni,
• Diverse Nature.• Numerous Historic Monuments
and Rich Ethnographic Resources
• Resorts and mineral springs.• Folklore and Ancient customs• Undisturbed Endemic Flora and
Fauna.
International Business 2012 12
Hospitality & Infrastructure• Travel & Tourism Competitiveness
Index (TTCI) – Rank 50• Tourism growth 3.6 times in last 5
years• Boom in hotels due to tax breaks –
Prices increased by 18% last 2 years• Heavy infrastructure investment
agenda: Roads, hospitals, education, municipal infrastructure,airports, master planning, public security, tourism infrastructure, farming etc
International Business 2012 13
Logistics and Shipping• Location Advantage - Old silk
route• Gateway to various landlock
country• Major Destination of DHL, FedEx• Gazproms’ Pipeline passes
through• Hub to transfer power and
resources to neighbours
International Business 2012 14
International Business 2012 16