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Business Profile: Situated at the intersection of north-south and east-west trade routes, Cracow has historically been a trading city, this is likely to continue as the city is seen as a gateway to the markets of the former Soviet Union. Cracow's economic profile has been changing rapidly since the fall of the communist regime. Inefficient state factories still blot the Nowa Huta suburb to the east of the city, although efforts to reduce the amount of pollution have had some effect in part thanks to an anti-pollution programme elaborated with the United States government. The main industries are metallurgic, tobacco and pharmaceutical. The car industry in Cracow is booming with Zakopiankea Street buzzing with car dealers from Ford to Daewoo, Opel and Crysler. The city ranks fourth in Poland in terms of industrial output.

In terms of business institutions and cultural industries Cracow ranks second, after Warsaw. Warsaw is still considered the city where the 'big bucks' are made, but in spite of this, tourism has been making great strides and is now one of the most important industries to the city. The knock-on effects of this include steady growth in service industries, with increasing numbers of retail and catering establishments opening, continuing the trend of rising private ownership within the economy. Other up-and-coming sectors include the financial and high-tech industries, helped no doubt by the city's impressive brain trust - there are 15 universities and colleges here, with over 90,000 students. Ten banks are based in Cracow, and 46 others have a presence.

Unemployment in the city, at 12% in 2000, is lower than in the surrounding province at 14%, but both have seen an increase in recent years due to the closing of the Nowa Huta factory (see Sightseeing section). Nonetheless, Cracow's unemployment remains below the national level of 14.4%. In general, the Polish economy has been slowing down, with GDP growth dropping to 4.8% by the beginning of 2000, and inflation increasing to 10.2%. The country's trade deficit continues to increase, and the Zloty is still losing about 7% of its value against the Dollar annually. However, with the strength of its tourist indutry, boosted by its status as a city of culture for the year 2000, Cracow seems to be the best positioned of Poland's cities to weather any financial difficulties.

Business Etiquette: Letters of introduction are extremely useful for establishing contact with businesses in Poland, where practices are still quite formal. Meetings should be by appointment. Presentations should be thoroughly prepared and, at a minimum, the executive summary should be translated. Decisions are often by committee, so negotiations may be protracted and a deal cannot be confirmed until all parties have signed.

Until familiarity has been established, a person's title and surname should be used in addressing them. Handshaking is customary and business cards (preferably translated) should be exchanged with all participants at a meeting. To make a good impression, the wearing of conservative business suits is recommended. Breakfast meetings are rare, despite the fact that the business day begins early, but business lunches and dinners are popular (Poles love to stay up late, talking and drinking). The person who issues the invitation is generally the one who pays the bill.

Government offices are open 0830-1630. Traditionally, offices in major industries were open 0700-1500, but many now use Western business hours (0830-1700). Some businesses may open on Saturday morning.



Copyright © 2001 Columbus Publishing
    
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