insights

1. MACROECONOMICS
PRESENTATION
Presented by:
Vishesh,
Dheeraj
Abhishek
Rahul
Aditi

2. Netherlands
• Netherlands has been playing a special role in
the European economy for many centuries.
• It has a highly mechanised agricultural and dairy
sector employs 4% of the labour force but
provides large surpluses for the food-processing
industry and for exports.
• The Dutch rank third worldwide in value of
agricultural exports, behind the United States
and France, with exports earning $55 billion
annually.

3. Why???
• The receptive international perspective, that the Dutch have long been know for,
has turned their economy into one of the most accessible in the world. The
Netherlands are in particular praised for its outward-looking business culture, its
strategic location within Europe, its productive, skilled and multilingual workforce,
and its sound macro-economic underpinnings.
• Gateway to Europe - The Netherlands is an ideal location from which to penetrate
markets throughout Europe, the Middle East, the Far East, Africa and beyond, by
establishing operations here.
• Business environment - Known for centuries as a nation of successful traders, the
Dutch are internationally oriented by nature and know instinctively how to
anticipate and fulfill the needs of a customer, no matter where he or she is based.
• Superior logistics and technology infrastructure - The Port of Rotterdam is the
worlds largest seaport, and Schiphol Airport is recognized as one of the major
business hubs in Europe and has claimed over 100 international awards over the
last couple of decades. The Netherlands is also classified as one of the most wired
countries in the world, a dynamic force in electronic commerce, communications
and outsourcing.

4. Why???
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Netherlands
Overall Rank: 4
Economic Integration: 23
Business Startup Cost: 33
Labor/Material Cost: 26
Transport Cost: 4
Less Tangible Costs: 5
Local Consumer Base: 22

5. Business opportunities in Netherlands
• The Ministry of Economic Affairs promotes:
• A competitive business climate. By abolishing unnecessary
regulation and creating business-friendly fiscal policy.
• Specific policy for innovation and enterprise to support businesses
in areas where it is really necessary. Additional attention is paid to
creating favourable conditions for key areas like chemicals, water
and energy.
• A world-class agri-food sector, that can be further strengthened
through investment in innovation and sustainability.
• Support for Dutch business abroad. Through economic
diplomacy, for example, and assistance from embassies and
consulates.
• Clean, reliable energy. Clean energy is not only essential, it is also a
prime export product.
• Business practices that take nature and animal welfare into
account. This creates a balance between economy and ecology.

6. Business opportunities in Netherlands
• And while they manufacture a widely diverse array of
food products, they’re all here for the same reasons.
• As a manufacturing location, the Netherlands has an
excellent selection of industrial space in key locations, a
high standard of education and worker training,
employees with an excellent work ethic and high
productivity relative to other EU nations, plus high
levels of automation and efficiency in production
processes.
• In short, you’ll find everything you need to make food
products of better quality, faster and more costefficiently.
• Taking this into consideration we like to go ahead with
the dairy product CHEESE.

7. • Second largest agricultural exporter
• One out of 10 workers has a job in the agricultural sector. The Netherlands
is the second largest exporter of agricultural products in the world, after
the US. With an average of 1,300 people per square mile, the Netherlands
is one of the most densely populated countries in the world.
• 7.3 million households
• The Netherlands has 7.3 million households (2.2 people per household).
On average, each family spends 14 percent of its income on food,
beverages, and tobacco. Holland is also one of the world’s wealthiest
nations, excelling at trade and high-quality financial and professional
services.
• Dairy is a cornerstone of the Dutch diet. A typical Dutch lunch consists of a
sandwich with cheese and a fresh glass of milk. The daily average dairy
consumption in the Netherlands is above that of other countries in the
European Union. Our love of dairy stems from a long tradition, as the
Dutch climate allowed pastures and cows to flourish and become a natural
part of our lives. Today, dairy farming remains one of the most important
elements of Dutch agriculture.
• 1.5 million cows
• Dairy farmers use about 60 percent of the agricultural land in the
Netherlands. Milk alone accounts for 17 percent of the production value
of Dutch agriculture. The Dutch dairy sector has 20,000 farms with nearly
1.5 million cows.

8. GDP in terms of business
2011
• GDP Netherlands - $ 836 B
• GDP Turkey - $ 774B
2012
• GDP Turkey - $ 788B
• GDP Netherlands - $ 770 B

9. Competitors in terms of production of
cheese
(Metric Tonnes)
Italy
1,132,010
Netherlands
745,984
Poland
650,055

10. Per Capita Income
the total national income divided by the
number of people in the nation
World Bank (2005–
2012)
12
Netherlands
43,198
2012
International Monetary Fund (2010–2012)[
12
Netherlands
41,527
2012
Central Intelligence Agency (1993–2012)
14
Netherlands
42,900
2012 est.

11. Dutch working environment
• Labour contracts in the Netherlands
• In general, there are three labour options that differ on the employment
period and dismissal procedures. As always, specific arrangements with
the employer can be made.
• › Temporary labour contracts
• This type of contract has a pre-specified startand end date. In other words,
there is no dismissal procedure at the end of the contract.
• › Permanent labour contracts
• In this case, there is no end date. The contract can be terminated by either
the employer or the employee only under pre-determined conditions.
• › Contracts with a recruitment agency
• The recruitment agency is your legal employer even though you work for a
specific organisation. Note that there is no arrangement for your
protection against dismissal.

12. Employment Conditions
• Remuneration packages
• Salaries, holidays and bonuses are offered as a package in the
Netherlands. Yet, what you should ask for and expect depends on your
academic background and work experience. As an example:
• › For an entry-level position with a Master's degree, the monthly salary
varies between 2.300-2.500 euros gross.
• › Every May there is a bonus equivalent to 8% of annual earnings.
• › The number of vacation days is usually 24 per year. However, it is
common for companies to offer more days off as an additional incentive.
• › Some employers offer the possibility to "buy" extra days off.
• › The nation's minimum wage can be changed every six months to adjust
to inflation.
• Minimum wage in the Netherlands
• For an employee aged 23 or over in full employment, the gross minimum
wage as of January 1, 2013 is 1.469,40 per month.

13. Political Environment
• Netherlands is a constitutional monarchy with a
parliamentary system of government
• The parliament is bicameral
• The upper chamber is the senate
• The lower chamber is the house
• The executive branch is formed by the council of
ministers headed by Prime Minister.
• The council of minister is appointed and
dismissed by the monarch.

14. FDI
• Around 6,300 foreign companies have established 8,800
operations, including the likes of Coca-Cola, BASF, Cisco
Systems, Microsoft, Nike, Sabic, Siemens and Yakult.
• - The Netherlands is the eighth -largest recipient of FDI in
the world (2010). Foreign companies made inward direct
investments worth 590 billion US dollars (445 billion euros).
Foreign investors provide 15% of Dutch employment.
• The legal system is fair and transparent and well equipped
to deal with business, trade, taxation and patent issues.
There are specialized courts for dealing with criminal and
administrative issues, as well as with tax law, planning law,
environmental law and trade and commerce.

15. FDI
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The relevant factors include a corporate income tax rate of 20 % on the
first 200,000 euros, and 25.5 % for taxable profits exceeding 200,000
euros, which is well below the EU national average.
·
Companies can benefit from an effective tax rate of only 5% for R&D
income from self-developed patented intangible assets and also from selfdeveloped unpatented intangible assets which qualify for the so-called
WBSO.
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The Dutch ruling practice, which provides clarity and certainty on tax
assessments in advance, can be obtained on future
transactions, investments or corporate structures.
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There is also a broad tax treaty network. The Netherlands has signed
treaties with more than 80 countries that ensure the avoidance of double
taxation on income and capital. This reduces withholding taxes on
dividends, interests and royalties (for interest and royalties, in some
cases, taxes are reduced to 0 %).
· Investors can benefit from a 30% tax break for highly qualified foreign
employees

16. FII
• The Netherlands Authority for the Financial Markets is the body
responsible for regulating behaviour on the financial markets in the
Netherlands. This includes regulating the behaviour of all parties involved
with the savings, loans, investment and insurance markets. It includes
regulating all organisations that provide financial products and those that
issue products, including stock exchanges.
• The AFM has the following three aims:
• making the financial markets more accessible
• promoting the smooth operation of the financial markets
• promoting confidence in the financial markets.
• The public, the business sector and the government all depend on the
financial products offered on the various markets for many of their
activities. Confidence in the orderly and honest operation of these
markets is therefore crucial.
• The AFM works in conjunction with the De Nederlandsche Bank which is
responsible for prudential regulation in the Netherlands.

17. FII
• This guideline addresses the Bank’s policy with respect to two
categories of foreign investment institutions, namely:
• foreign investment institutions subject to adequate supervision by
their home-country supervisory authority that apply for a license in
the Netherlands Antilles,
• foreign investment institutions not subject to adequate homecountry supervision that apply for a license in the Netherlands
Antilles.
• CONCLUSION
• If a foreign investment institution considers itself eligible for a
dispensation of the requirements as indicated in this policy
guideline, it should, along with its request for a license, submit a
copy of the following documents to the Investment Institutions
Supervision Department of the Bank