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Business Business Profile: Business in Bucharest has been shaped by the country's economic history. Before Communism took root in 1947, Romania's economy was mainly agricultural. Yet the Communist government planned a primarily industrial society and by the time Ceau?escu became President in 1965, agriculture was collectivised and many people were being transferred from rural to urban areas and into industry. However, the country lacked the necessary energy resources for this shift. Although Romania had been one of Europe's biggest oil suppliers during the nineteenth century, production had decreased - exacerbated by the earthquake of 1977, with its epicentre in the main oilfields of Ploie?ti - to the extent that Romania's main export became its main import. A poor relationship with the Soviet Union led Romania to turn to the west for help, resulting in a trade deficit of $2400 million dollars by 1980. Ceau?escu tackled this by reducing imports by one-third and increasing exports of vital materials. Romanians suffered severe food and household energy shortages while money was poured into industry and large-scale building schemes, thus setting the scene for the 1989 revolution. Throughout the 1990s, industrial output saw a yearly decrease, causing widespread long-term unemployment (12.2% in 2000), while increased imports have resulted in massive inflation, averaging 109.4% annually between 1991 and 1998. Salaries were unable to keep pace with price increases (the average monthly net salary was US$94 in 2000) with the result that many everyday goods were out of the reach of most people. Yet the picture is not all gloom: market reforms are helping to redress the balance, albeit gradually so as not to destabilise the country, and figures for 2000 show that inflation has slowed to 44.9%. And although, 47% of the labour force was in industry, 24% in agriculture and 29% in services in 1990, recent figures are more promising. In 1999, 32% of the labour force was in industry (contributing 36.2% of the GDP), 37.5% in agriculture (15.5% of the GDP, with 85% privatised), and 30.5% in services (48.3% of the GDP). Bucharest is Romania's main communications and industrial centre. Its key industries are agricultural machinery, transport equipment, textiles and clothing, chemical products, construction materials, furniture, footwear and wine. IT services and cosmetics are also growing industries. Some of the largest multinational companies in Bucharest are in oil (Shell, Texaco and Agip), automobiles (Renault/Dacia and Nissan) and IT (IBM and Microsoft). The tourist industry is strongest on the Black Sea coast and Sinaia and Poiana Bra?ov ski resorts, but Bucharest attracts many business visitors. Business Etiquette: Romanians love to talk, so mobile phones are a must for doing business in Bucharest. Business visitors in Romania should make appointments for meetings well in advance. Punctuality is important and suits are expected. On greeting it is customary to shake hands and business cards are often exchanged. Younger Romanians tend to speak English, while the older generation might speak French or German. Summertime is not good for doing business as many companies go into hibernation. Easter and Christmas are also difficult, as companies and shops close down for an indefinite period. Normal business hours are 0900-1700. Lunch, usually taken at noon, may only last 30 minutes unless it is a business lunch. Business meetings over lunch or dinner are becoming more common and alcohol, especially wine, is often drunk at such occasions. Work colleagues may socialise together in the evening at a local bar, but this tends to take place more in the multinational companies. It is relatively uncommon for Romanians to invite foreign businesspeople to their homes, but should this occur, an appreciated gift would be flowers for the hostess and/or a bottle of wine. |
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