International Business CIA 1.1

INTERNATIONAL BUSINESS
CIA 1.1
COUNTRY: NETHERLANDS
SUBMITTED BY
Kartik Parekh
1820416
About Netherlands
The Netherlands, a country in the northwestern Europe, is known for a flat landscape of
canals, Tulip fields, Windmills and cycling routes
Capital: Amsterdam
Currency: Euro
Population : 17,336,891
GDP: $914 billion
PESTEL analysis of the Netherlands
Political factors affecting the Netherlands
• The Netherlands is a constitutional monarchy. It is also a parliamentary

democracy. The monarch is the head of state; however, has limited powers and
ceremonial functions.
• The Prime Minister is the head of government who usually comes from the party that
won the most seats in the elections.
• The Netherlands is a keen advocate of the European Union; however, voices against
the union are also heard in different corners of the country. It works closely with the
USA and other countries on a variety of international programmes.
• The Netherlands is one of the least corrupt countries in the world. Political corruption
is not tolerated at all, and any cases that arise are dealt with appropriately.
Economic factors affecting the Netherlands
• The Netherlands is a part of the euro zone and the 17th largest economy in the world. It
is also the 6th largest economy in the European Union.
• Compared to many EU countries, the Netherlands has lower unemployment rates.
• It is worth noting that the Netherlands has some of the highest income taxes in the
world.
Social factors affecting the Netherlands
• The Netherlands is one of the richest countries in the world and its people are happier
than those of many European nations. The Dutch people tend to work less hours and
therefore, can spend more time with family and friends. They earn better as well; hence
better standards of living. In fact, they are a very good example of work-life balance.
• The Netherlands is a friendly and tolerant country.
• However, there are some social challenges facing the Netherlands today. For instance,
social inequality is a major problem. There is a widening gap between highly educated
people benefitting from globalisation and less educated people being left behind by it.
Technological factors affecting the Netherlands
• The Netherlands is one of the leading countries in Europe in technological
advancement.
• English-speaking and tech-savvy work force has made it easy for global IT companies
such as Microsoft, Cisco, Interxion, Infosys, Huawei, Oracle, Netflix, Intel, IBM, Uber,
Verizon, and Google to establish their presence in the country.
• Amsterdam Science Park is a hub for high-quality technical facilities and research
institutes.
• It is worth noting that tech development is not confined to the capital only, rather it
can be found all over the country.
• The use of social media is widespread in the Netherlands. For instance, as of August
2019, the total number of users of WhatsApp, Facebook, Instagram, YouTube, and
Snapchat are 11.9, 10.1, 4.9, 8.7, and 2.4 millions respectively .
• This shows the enormous opportunities for online businesses in the country.
Environmental factors affecting the Netherlands

• The Netherlands is small but a picturesque country.
• Its offer of seven UNESCO world heritage sites, world-renowned museums, historical
monuments, beautiful canals, islands, stunning towns and villages, and colourful
nightlife attract tourists from all over the world, particularly from the neighbouring
countries.
• In fact, tourism is now a key industry in the country. It offers approximately 641
thousand jobs and contributes 3.9% to the country’s GDP (Statistics Netherlands,
2018).
• However, the Netherlands faces some big environmental challenges. For instance, it is
considered Europe’s most dangerous place to live as large parts of the country are below
sea level .
• It is highly exposed to natural disasters and climate change. Other environmental
challenges for the country are air and water pollution, loss of biodiversity, and
overexploitation of natural resources.
Legal factors affecting the Netherlands
• As a liberal and tolerant country, many things are legal in the Netherlands which are
unlikely to be legal in many other countries.
• The judiciary is independent of political interference and anyone whether locals or
foreigners, can expect an impartial trial and justice from the judicial system.
• Dutch Equal Treatment Act prohibits discrimination on the grounds of religion,
personal beliefs, political opinion, race, sex, nationality, hetero – or homosexual
orientation and civil status
SWOT ANALYSIS
Strengths Weaknesses
• Stable Macroeconomic • High loan rates
Environment • High rent prices
• World’s second largest • High cost for patent
agricultural exporter application
• Great public transport • Low R&D intensity
• One of the least corrupt • Lagging productivity in some
countries in the world sectors
• Low unemployment rate
• High level of technological
readiness
Opportunities Threats
• Cultural diversity • Tax changes

• Growing economy • Stagnation of R&D intensity
• Improved cooperation of • Lack of seed Capital
ministries • Low number of researchers
• Improvement of PPP
Business Opportunity
To set up an Agriculture and foods industry
Reasons
1. International Business Climate
2. Superior Infrastructure.
3. Creative & Innovative Environment
4. Exceptional Quality of Life
5. World-leading exporter of agri-food products & leading in innovation
6. Holland's mild climate, flat and fertile soil and favourable geographical location at
the heart of Europe
7. Success in renewing the agricultural production chains

International Business CIA 1.1

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INTERNATIONAL BUSINESS

PESTEL analysis of the Netherlands

Political factors affecting the Netherlands

• The Netherlands is a constitutional monarchy. It is also a parliamentary

Environmental factors affecting the Netherlands

• Cultural diversity • Tax changes

To set up an Agriculture and foods industry

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