The Netherlands

Submitted To:
RAJKISHAN NAIR

Submitted By:
ATUL TOMAR DIPANKAR CHANDA BHUPESH BHARDWAJ SHRADDHA SETHI
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Official name Kingdom of the Netherlands Form of government constitutional monarchy, parliamentary democracy Head of state Queen Beatrix of Orange-Nassau Capital Amsterdam Seat of government The Hague Surface area 33800 sq.km. Number of inhabitants 16,740,975 (July 2012) Number of inhabitants 495 per sq. km (July 2012) Monetary unit Euro Language Dutch, Frisian Administrative structure Twelve provinces and the overseas territories

INTRODUCTION POPULATION OF NETHERLAND HISTORY OF THE COUNTRY The ancient and medieval Netherlands Renaissance Netherlands The Netherlands in 19th century The Netherlands in 20th century

SOCIOLOGICAL ASPECT OF THE COUNTRY Human development index 2011 Population using information technology COUNTRY RELATIONSHIP WITH OTHER NATION U.S. Netherlands relationship Bilateral economic relationship The Netherlands member of international organization POLITICAL SYSTEM OF COUNTRY Monarch Parliament House of representative High councils of states

CONTRIBUTION OF DIFFERENT SECTOR IN THE GDP OF THE COUNTRY Inflation Employment rate Unemployment rate IMPORT AND EXPORT OF COUNTRY

MAJOR INDUSTRY OF THE COUNTRY Agriculture and food sectors Horticulture Chemical industry Life science and health Creative industry Logistics Energy water Hi-tech

GOVERNMENT SUPPORT TO INDUSTRIALIZATION Government effectiveness National debt as percentage of GDP Corruption percentage index Corporate tax rate on profit

TRADE RELATIONSHIP WITH NEIGHBOR Most significant trading partner: western Europe Gateway to Europe CONDTION OF F.D.I. NUMBER OF ENTREPRENEURS (2009) MOST INNOVATIVE COUNTRY R&D EXPENDITURE INNFRASTRUCTURE Navigable inland waterways Strong in logistics European an airport traffic and transport 2011 Largest port in Europe

CONCLUSION
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OBJECTIVE
The objective of this country report is analyze the possibility of doing business in the Netherlands keeping the support of government in the mind and analyses the business environment.

INTRODUCTION
The Netherlands also known as the Holland/Dutch has for centuries been one of the most open economies in the world. The Dutch conduct business all around the world. The Dutch economy was hit hard by the global economics crisis which began in the autumn of 2008. Nevertheless, the Dutch economy has stayed strong despite these difficult situation and Holland continues to occupy a prominent position in world trade in 2011 the Netherlands was the fifth largest exporter of goods in the world according to the World economics forum the Netherlands has the seventh best business climate in the world the climate in the business also scores highly with other institutes such as IMD and Economist Intelligence Unit.

Population of Netherlands
In the Netherlands the male breadwinner and the related institutional regulations of formal marriage lasted till the 1990s. at date men are still the main providers of their families and although labor market participation of Dutch women increases, the seldom have more than a part time job when there are children are to be cared for. Nevertheless family law has changed dramatically in 1998 among other by equalizing children born in and out of wed lock. At the beginning of the 21st century, Dutch family law is considered to be both trend setting and
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straggling behind at the same time. This proposition seems to be ambiguous. However to put it succinctly, Dutch family is unique in two ways: on the one hand the Netherlands became the first country in the world where two partners of the same sex can enter into a marriage. On the other hand, the Netherlands is still the only country in the world where the universal community of property is the applicable legal matrimony property regime. The Total Population of Netherlands has increased from 14,892,574 in 1990 to 16,105,285 in 2002(Statistics Netherlands Star line, 2002). The total population of Netherlands is 16.69 million in Jan 2012. The Population growth Rate of Netherlands is 0.452% (Source: CIA world fact book, July 26,2012).

NETHERLANDS POPULATION

Nationality:
o Noun: Dutchmen (men), Dutchwomen(women).

Language:
o Dutch (official), Frisian (official).

Millions Of People
16.8 16.6 16.4 16.2 16 15.8 15.6 15.4 Jan/01 Jan/02 Jan/03 Jan/04 Jan/05 Jan/06 Jan/07 Jan/08 Jan/09 Jan/10 Jan/11 Jan/12 15.926 16.1489 16.0461 16.2253 16.2817 16.3199 16.3461 16.3817 16.4456 16.53

16.62

16.69

Population:
o 16,730,632 ( July 2012 )

Age structure:
o 0-14 years: 17.2% (male 1,474530/ female 1,408,144) 15-64 years: 66.2% (male 5,569934/ female 5,505,269) 65 years and over: 16.6% (male 1,231,914/ female 1,540,841)

 Median age:
o Total: 41.5 years Male: 40.7 years, Female: 42.3 years

Population growth rate:

o 0.452%

Brith rate:
o 10.89 births/1,000 population

Death rate:
o 8.39 deaths/1,000 population

Net migration rate:

o 2.02 migrant(s)/1,000 population

Urbanization:
o Urban population: 83% of total population (2010) Rate of urbanization: 0.8% annual rate of change

Major cities population:

o Amsterdam (capital) 1.044 million; Rotterdam 1.008 million; The Hague (Seat of government) 629,000 (2009).

Sex ratio:
o At birth: 1.05 male(s)/female Under 15 years: 1.05male(s)/female 15-64 years: 1.01 male(s)/female

65 years and over: 0.8 male(s)/female Total population: 0.98male(s)/female

Infant mortality rate:

o Total: 3.73 deaths/1,000 live births Country comparison to the world: 204 Male: 4.03 deaths/1,000 live births Female: 3.41 deaths/1,000 live births

Literacy:
o Definition: age 15 and over can read and write Total population: 99% Male: 99% Female: 99%

School life expectancy (primary to tertiary education)

Total: 17 years Male: 17 years Female: 17 years (2008).

HISTORY OF THE COUNTRY THE ANCIENT AND MEDIEVAL NETHERLANDS :

Farming was introduced into the Netherlands about 4,500 BC. At first farmers made tools and weapons of stone. However after 1,900 BC they used bronze. About 750 BC the inhabitants of
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the Netherlands learned to use iron. In the Ist century BC the Romans conquered Belgium and the southern Netherlands. They built roads and towns. However they did not colonise the northern part of the Netherlands. Then in the late 4th century the Romans withdrew from the Netherlands as their Empire crumbled. Afterwards the Netherlands was left to Germanic peoples, Franks, Saxons and Frisians. However in the 8th century AD the Franks conquered the others and became masters of the region. Meanwhile the area was converted to Christianity although a missionary, St Boniface was martyred by the Frisians in 754. In 768 Charlemagne became ruler of the Franks and he created a great empire in Europe. Under him the Netherlands was divided into cantons, each ruled by a count. However when Charlemagne died in 814 his empire was divided into three parts, roughly modern France, Germany and the region between At first the Netherlands was part of the Middle Empire. However in 925 it was absorbed into the German Empire. During the 9th and 10th century the Netherlands suffered from Viking raids. However during the Middle Ages town life and trade flourished in the Netherlands. In the 14th century Dutch towns enjoyed considerable freedom. However in the 15th century the Dukes of Burgundy gradually took control of the region

RENAISSANCE NETHERLANDS
Eventually the Low Countries including the Netherlands became the possessions of the powerful Habsburg family. In 1555 Phillip II of Spain became ruler of the region. Meanwhile the Reformation was sweeping the Netherlands despite rigorous persecution. Calvinism, the teachings of John Calvin became popular in the Dutch towns. In 1556 Calvinists destroyed religious art in many churches in a movement called the Iconoclastic Fury. In 1567 King Phillip

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sent his servant the Duke of Alva with an army to suppress the Calvinists and impose his will on the Netherlands. Alva set up the Council of Blood, which tried and condemned to death 12,000 people for taking part in the riots of 1566. Then Prince William of Orange, known as William the Silent became the champion of Dutch freedom. In 1572 William led pirates called the Sea Beggars against the Spanish. From the sea they sailed up rivers and captured Dutch towns. The Dutch flocked to join the rebellion. However the Spanish fought back and a terrible war ensued. In 1579 seven provinces of the Low Countries signed the Union of Utrecht. In 1581 they declared independence from Spain. In 1588 they formed the Republic of the Seven United Netherlands. However the Spanish fought to hold onto the region and in 1584 William the Silent was assassinated. Yet the English sent help and Spain was weakened by the defeat of the Spanish Armada in 1588. Phillip finally died in 1598. During the 17th century the Netherlands became a prosperous trading nation helped by a 12 year truce with Spain from 1609 to 1621. The Dutch East India Company was formed in 1602. The Dutch West India Company was formed in 1621 and in 1625 the Dutch founded New York (later New Amsterdam). In 1652 they founded a colony in south Africa. Meanwhile Dutch sailors went on long voyages. In 1606 Willem Jansz discovered Australia and in 1642 Abel Tasman discovered Tasmania. Meanwhile the Spanish finally recognised the independence of the Netherlands in 1648. However trade rivalry with England led to three wars in 1652-54, 1665-67 and 1672-74. However William of Orange, Stadholder (ruler) of the Netherlands made peace with England and

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married Princess Mary of England. In 1688 William became king of England. In the late 17th century science, art and philosophy flourished in the Netherlands. However as an economic and political power Holland declined in the 18th century. The Dutch were involved in the War of the Spanish Succession against the French. The long war left the Netherlands exhausted. Increasingly Britain and France dominated world trade.

THE NETHERLANDS IN THE 19TH CENTURY

At the end of the 18th century Europe was thrown into turmoil by the French Revolution. In 1795 the French invaded The Netherlands and founded the Batavian Republic. In 1806 Napoleon made his brother Louis king of the Netherlands. However the brothers fell out and Louis was forced to abdicate in 1810. The Netherlands was then absorbed into the French Empire. However by 1813 Napoleon was facing defeat and in that year William of Orange returned to the Netherlands. In 1814 he was made King William I. In 1815 Belgium and The Netherlands were joined together as one country under King William I. However the two countries were too different to be united. In 1830 the Belgians rebelled and in 1839 the great powers forced William I to give Belgium its independence. William I died in 1840 and in 1848 his son introduced a new liberal constitution. For the rest of the 19th century the Netherlands was a prosperous and stable country. However everybody did not share the prosperity. Some industrial growth took place. (In 1839 a railway was opened from Haarlem to Amsterdam). However conditions in 19th century factories in the Netherlands were terrible.

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 THE NETHERLANDS IN THE 20TH CENTURY

During the First World War The Netherlands remained neutral but the German Kaiser fled to the Netherlands in 1918 and was granted asylum there. During the 1930s like the rest of the world the Netherlands suffered from the Depression and there was mass unemployment. Yet despite the depression living standards rose during the 1920s and 1930s. When the Second World War began Dutch remained neutral but on 10 May the Germans invaded. On 14 May the Germans bombed Rotterdam. The Netherlands was forced to surrender. However Queen Wilhemina escaped. During World War II the Netherlands suffered terribly. Thousands of Dutch men were deported to work in Germany and 23,000 people who resisted the Germans were shot. The worst suffering was during the Winter of Hunger in 1944-45 when the Germans looted the Netherlands of food, reducing the people to near starvation. Furthermore the Nazis murdered a huge number of Jews. In 1940 about 140,000 Jews lived in The Netherlands but less than 25,000 survived. The Germans the Netherlands recovered from the war and a new welfare state was created. In 1949 the Dutch colony of Indonesia became independent. It was followed by Suriname in 1975. Meanwhile the Netherlands was a founder member of the EU in 1957. In 1999 the Netherlands joined the Euro. Like the rest of the world the Netherlands suffered in the recession of 2009 but it soon recovered. Today the Netherlands is a prosperous country. Flower growing is still an important industry. Today the population of The Netherlands is 16.7 million.

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SOCIOLOGICAL ASPECT OF THE COUNTRY Human development index 2011

According to UNDP the Netherlands ranks third place worldswide with regard to prosperity. In determining prosperity the UNDP takes into account a countrys GDP as well as other aspects of human well being, such as life expectancy, public health, literacy levels and educational standards of 187 countries listed in the UNDP index, the Netherlands ranks third.

scores
0.95 0.94 0.93 0.92 0.91 0.91 0.9 0.89 Norway Australia Netherland United states New zealand 0.91 0.908 0.929 0.943

scores

Source: UNDP 2011

Population using information technology :

The E-readiness rankings, compiled by the EIU, assess economies with regard to their ability to ability to absorb information and communications technology (ICT) and use it for economies and

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social benefit. The E-readiness ranking of its consumers, business and government to ICT to their benefit, Research conducted by the world Economic Forum 2010 on networked readiness also gave the Netherlands an excellent score the Netherlands came ninth in a list of 133 countries this research aims to measure the degree to which a national environment is conducive to ICT development and diffusion.

score out of 10
8.5 8.45 8.41 8.4 8.36 8.35 8.3 8.25 Sweden Denmark United states Netherlands Finland 8.36 score out of 10 8.41 8.49

Source: EIU 2010

COUNTRY REALTIONSHIP WITH OTHER NATION U.S.-NETHERLANDS RELATIONS

The United States and the Netherlands established diplomatic relations in 1782 following the U.S. declaration of independence from Great Britain. The U.S. partnership with the Netherlands is one of its oldest continuous relationships and dates back to the American Revolution, which the Dutch supported. The excellent bilateral relations are based on close historical and cultural
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ties as well as a common dedication to individual freedom and human rights. The United States and the Netherlands often have similar positions on issues and work together both bilaterally and multilaterally in such institutions as the United Nations and the North Atlantic Treaty Organization (NATO). The Dutch fought alongside the United States in the Korean War and the first Gulf War and have been active in global peacekeeping efforts in the former Yugoslavia, Afghanistan, and Iraq. The Netherlands played a leading role in the 1999 Kosovo air campaign. It has contributed to European Union (EU) peacekeeping forces in Bosnia. The Dutch also have supported and participated in NATO training efforts in Iraq, the EU and NATO police training efforts in Afghanistan, the 2011 NATO mission in Libya, and in both EU and NATO counter-piracy operations. The Dutch are participants in the smart defense initiative, including in the area of missile defense. The Netherlands supports counterterrorism efforts with leadership, personnel, and material. It is a party to all 12 UN counterterrorism conventions. The Dutch work closely with the United States and other countries on international programs against drug trafficking and organized crime.

Bilateral Economic Relations

The Netherlands and the United States share a liberal economic outlook and firm commitment to free trade. The Netherlands is a member of the European Union and has worked within the EU as well as with the United States at the World Trade Organization and in the Organization for Economic Cooperation and Development to advance the shared goal of a more open, market-led global economy. The United States attaches great value to its strong economic and commercial ties with the Dutch. With no significant trade or investment barriers, the Netherlands is a

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receptive market for U.S. exports and an important investment partner. The two countries are among each other's largest direct foreign investors. The Netherlands is the third-largest investor in the U.S. and the 7th-largest trading partner of the US, with more than 700.000 jobs in the U.S. related to trade and investment with the Netherlands. The Netherlands participates in the Visa Waiver Program, which allows nationals of participating countries to travel to the United States for certain business or tourism purposes for stays of 90 days or less without .

The Netherlands's Membership in International Organization

The Netherlands and the United States belong to a number of the same international organizations, including the United Nations, North Atlantic Treaty Organization, Euro-Atlantic Partnership Council, Organization for Security and Cooperation in Europe, Organization for Economic Cooperation and Development, International Monetary Fund, World Bank, and World Trade Organization. The Netherlands also is an observer to the Organization of American States.

Political system of country

The country has political system contains lots of agencies to keep political system effective transparent and responsible towards the citizen of Netherlands. Netherland has constitutional monarchy since 1815 & it transparent into parliamentary democracy in 1848. Before 1815, from 16th century it was republic up to the beginning of 19th century. It was also a part of France empire from 1810-13 under the rule of Napoleon Bonaparte. Since 1848 Netherland is constitutional democracy have monarchy as the head of the country And parliament as the functional body of the country, consist different political parties whose

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representative selected by the direct election system based on the principle of first past & the post system.

Monarch
Monarch is the head of the country . All the bill become laws by signature of monarch, all the agreement done under his name but monarch use there power with the help of Prime Minister & cabinet who are the representative of citizen .It is a ceremonial post given to the royal family of Dutch. Beatrin Wilhelmine Arngard is the 9th monarch of kingdom of the Netherland.

Prime Minister
Prime Minister is the head of cabinet ,who directly get elected by the citizen of country. He rules the country with the help of cabinet minister and make all the policy of the country. Mark Rutte of peoples party for freedom and democracy is the 51st Prime Minister of the country.

Parliament
The Parliament of Netherland is divided into two part :-House of Representative ( Lower House) -Senate ( Upper House)

House of Representative (Tweede kamer)

The member of House of representatives is the directly elected by the citizen of nation in the parliament. It consists of 15 members. Its main task is to control government and legislation.

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The house gives the opportunity to the government ministers to reply all the questions asked by the house member. A cabinet or the minister cannot remain without the confidence of the house.

Senate (Eerste kamer)

The senate is a part of parliament but its member does not selected directly by the members of provincial first chose the 75 members .the provincial states again be directly elected. The senate is a co-legislator after the house adopted a bill. The Senate must still approve the bill, unlike the house , the senate lack the right of initiative.

High councils of States

The national ombudsman is independent high council of the state where citizen can complain about the improper conduct of official of government . It may also deal with complaints about municipalities, unless municipality has its own ombudsman. The National ombudsmen officer was appointed by the house . Nobody can rise any question abut that. It may also itself initiate an investigating and against any organ of government body. It was established on 1st Jan. 1982 A high council of state is the independent body guaranteed in the constitution of Netherlands . There are 5 council of state Senate, House, Audit, Ombudsman, council.

The court of Audits task

The court of audit investigates whether central government revenue and expenditure are received and spend correctly and central government polices implemented . They carry on their task under low . The express opinion on the government adopted policy. The Netherland court of audit is a central government body whose task is to ensure that the democratic system work properly.

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 Dutch council of state ( Raad van state)

The council of state has two primary tasks, carried out by two separate parts. The advisory division whose main task is to advice the government parts and the administrative jurisdiction division is the countrys highest administrative court general. The queen is the president of the council of the state .the council consists of the vice president and a maximum of 10 members.

Sub national government bodies

As the political system is very diversified and the country is divided into 12 province and these province into several blocks different governance also establish to assist the administration .

Contribution of different sector in the GDP of the country

The Dutch economy is the 5th largest economy in the euro-zone and 16th largest in the world. The Netherland has traditionally had an open economy and the level of trade with other countries is very healthy .The Netherlands earns almost 30% of its income from the export of goods and service. In 2011 the value of exports will be around 32.7% of GDP .It is main exporter in the field of food processing, chemical industry, petroleum refining and electrical machinery. The Netherland is a signatory member of W.T.O, U.N.O, I.M.F . The Netherlands along with 11 other European member began circulating Euro as their economy from 1 Jan 2002. After the long continuous progress since long year in 2008 the economy of the country hitted hard. By the global economics crisis as a result of GDP rate fall down to -3.195 but in spite of this the Dutch economy stayed strong despite these difficulties and Holland continuous to occupy a prominent position in world trade. By surface area and population size the Netherland is not a particularly
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large country comes 133rd and 61st respectively on the world list but the countrys economic performance is much higher .The GDP of the country was more than 607 billion Euros in 2011. The Netherlands is 16th largest economy in the world but the 6th largest in the European union The country is one of the wealthiest nation of European union it is second most wealthiest nation after Luxemburg . The high average income in the Netherlands is the result of high productivity and high level of labor participation. In 2011 GDP of the country is $840.4 billion .which shown the increase rate of 1.69% since 2010. GDP purchasing power parity was $694.57 billion and the per capita income in the Netherland is $50,355.50 The financial condition of the country is very strong $4087.7 bn dollar which supports the economy of the country. The world financial development report 2012 gave 9th rank to the Netherlands. According to the financial development report the country ranks 4th in the banking financial services, 13th in non-banking financial services (IPO activity, insurance etc).

US$ bn
661.2 490.9

public debt securities private debt securities bnaking deposits equity securities 1028.1 1909.5

Source: WEF financial development report 2012

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877.474 783.293 679.593796.651 658.971 676.89

840.4 694.57

GDP/ GDP(PPP)

GDP(PPP) 2008 2009 GDP/ 2010 2011

Source: Eurostat 2012

Inflation rate
The Netherland has a good reputation in monetary terms. The policies used by the DNB (the Dutch central bank) on monetary policies help due to moderate price increase. As per the survey of IMD 2012 Netherlands is second in world in the fight against high price.

inflation rate in percentage (2006-2011)

2.5 2.1 2 1.5 1.1 1 0.5 0 Ireland Netherlands Germany France Austria inflation rate (2006-2011) 1.7 1.8 1.8

Source: Eurostat 2012

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 Employment rate
As the country is programming continuously & have a high growth rate due to which the employment in the Netherlands has increased more than 15%. The reason for high employment rate is economic reform implemented by government , lack of strike in Netherlands labor market favorable condition to do business.

Employement rate (2011)

80 78 76 74 72 70 68 Switzerland Netherlands Sweden Denmark Germany 74.9 74.1 73.2 72.5 Employement rate (2011) 79

Sources: OECD 2012

Unemployment rate:

The rate of unemployment rate in the Netherlands is one of the lowest in Europe from 2006-2011 an average of 3.9% of potential working population is unemployed, while the average of euro countries was 8.7%. due to the economic crisis the unemployment rate is Netherlands increased to 5.1% but it is still below to the compare of other country.

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Average unemployement rate in percentage (2006-2012)

6 5 4 3 2 1 0 Netherlands switzerland Austria Luxembourg Denmark 3.9 3.9 Average unemployement rate in percentage (2006-2012) 4.9 4.4 5.3

Source: OECD 2012

Import and export of country:

The Netherland plays a significant role in the world economy due to its export and imports attracting foreign investors and invest abroad. Its geographic location in relation to the European hinterland and its world class infrastructure such as the port Rotterdam, Schipol airport helped Netherland become an important distribution centre

Netherlands export:
The Dutch have traditionally been a powerful force in international trade. In recent years, the Netherlands has increased its trade in industrial products and decreased trade in food products and foodstuffs. Principal Dutch exports today are manufactured goods, machines, chemicals, petroleum products, natural gas, and foods. Chief imports are manufactured products, machines, crude petroleum, and chemicals. From 1981 through 2000, the Netherlands experienced trade surpluses each year. .

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Netherland occupies a prominent position in world trade of being 5th large exporter of goods in world. In 2011 the Netherland exported good was over $638 billion which is 3.8% of total world exports. The Netherland is also a prominent exports of commercial services amounted to $131 billion in 2011 which placed the country 9th in world. Netherlands export volumes amounted to $397.6 billion in 2009, dropping from $531.7 billion in 2008. The Netherlands ranked seventh in the world in terms of the export volumes. Being a land with abundant fertile land and excess food production, the Netherlands exports food items to most of its trading partners. The Netherlands main export partners are: Germany Belgium France The UK Italy

The following graph shows the different countries contributed to the export volume

Netherlands: Exports partners in %

30 25 20 15 10 5 0 Germany Belgium France UK Italy 13.7 8.9 8.8 5.2 25.4

Sources: statistics of Netherlands 2012

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exports product in billions euros

37.2 36.8 2.9 48.1 7.1 21.1 4 Animals feed and live animals 48.1 Beverages and tobacco 7.1 Raw materials inedible (not fuels) 21.1 Minerals and vegetables oils and fats 4 70.6 111.9 Machinery and transportation equipment 111.9 chemicals products 70.6

Sources: statistics of Netherlands 2012

Netherlands import:
Imports in Netherlands decreased to 33826 EUR Million in November of 2012 from 34659.10 EUR Million in October of 2012. Imports in Netherlands is reported by the Dutch Statistics Office. Historically, from 1960 until 2012, Netherlands Imports averaged 9906.02 EUR Million reaching an all time high of 34659.10 EUR Million in October of 2012 and a record low of 584.90 EUR Million in August of 1960. The Netherlands main imports are: fuel (29 percent of total imports), machinery (26 percent), food and live animals (8.6 percent), pharmaceuticals and electronics. Netherlands imports data comparison from Jan 06 to dec. 12

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According to the 2009 statistics, the Netherlands imported a total volume of $358.9 billion dropping substantially from $474.8 billion in 2008. The Netherlands ranked eighth in the world in terms of import volumes With huge natural resources, the Netherlands requires machine to process them and therefore machinery dominates its import The Netherlands main import partners are: Germany China Belgium The US The UK Russia France

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The following graph shows how the different countries contributed in the import volumes:

Netherlands: import partners

18 16 14 12 10 8 6 4 2 0 Germany China Belgium The US The UK Russia France 10.1 8.7 7.5 5.8 5.4 4.4 16.6

Sources: statistics of Netherlands 2012

imports of good in billion euros

38.5 103.2 Raw materials inedible (not fuels) 15.8 Minerals fuel,lubricants 78.8 78.8 chemicals products 47 47 Machinery and transportation equipment 103.2 32.2 3.6 15.8 Animals feed and live animals 32.2 Beverages and tobacco 3.6

Sources: statistics of Netherlands 2012

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Major industry of the company

The Dutch is focusing on industrial sectors that are important international trade and investments. together these sectors are the drivers of the Dutch economy. Agriculture and food sectors Horticulture Chemical industry Life science and health Creative industry Logistics Energy water Hi-tech

Agriculture sector:
Holland is second largest exporter of agriculture products after the united states America. The total volume of Dutch exports 72.8 billion euros in 2011. The Dutch agri-food industry contributes 48 billion Euros of added value to Dutch GDP. It is the top producer of onion and 2nd most exported produce is tomatoes. As the agri -food sector is prominent to Netherlands so it invest a huge amount in R&D in this industry. Which make him 2nd highest private R&D investor. Due to the leading in agri sector, out of 40 worlds top food and beverage companies, 4 are Dutch, 12 companies have major production site or R&D facilities in Netherlands. Holland is global market leaders in machinery for poultry and red meat processing.

Horticulture:
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The Dutch horticulture sector is a global trend setter and the undisputed international market leader in flower plant bulbs and propagation material. A quarter of the worlds trade horticulture product(24%) is in Dutch hand. Holland has a 50% share of the world wide trade in floricultural products making it the dominant global suppliers of flowers and flowers products. Sum 80% of all flowers bulbs traded world wide is of Dutch origin, the majority of which are tulips. In this sector the country is 3rd largest producer of nutritional horticultural products of the approximately 1,800 new plant varieties that enter the European market each year 65% originated in the Netherlands. The Dutch are the worlds largest exports of seeds amounted to 1.5 billion euros.

Chemical sector:
The chemical industry is one of the leading business sector of Netherlands and make it an important contributor in economy. In 2010 it contributed 47 billion euros. The competitiveness of the Dutch chemical industry lies in its internal and inter company integration. Chemical companies work together on innovation and production. It has 19 out of 25 worlds leading chemical industry like AkzoaNobel, SHELL, DSM, PURAC. Within the strong chemical community the Dutch have formulized and structured the approach the co-operation. This is done through public private partnerships. In the area of advanced materials (polymer composites etc.) the Netherlands consistently punches above its weight producing world renowned innovation in material such as Twaron, Dyneemo.

Life science and health sector:

The Netherlands ranked 8th world wide in life science and health patents with approximately 400 innovative life science company clustered with in a 120 mile radius. 5 of the top 10 biotech deals
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within the EU in the last 4 years involved Dutch companies. In 2011, Brainport Eindhovens in brainport region was named the world most intelligence ICT & health cluster. The Netherlands is a global market leader in mobile health care which enables the Dutch to contribute to rural health care in developing nations around the globe. The industry annually exports around 37 billion euros in total of which 25 billion euros is pharmaceutical products and rest medical technology and medical lab instruments.

Creative industries: (agriculture, fashion , design,gaming ):

Holland creative industry ranked among the worlds top 10 in terms of trade figures, jobs, registration of brands and patents. This industry adds 7.1 billion euros in the Dutch economy. Holland has a tradition of interior design, epitomized by Rietvelds furniture designs. Marcel Wanders is currently one of the worlds best known furniture designers. The Netherlands is worlds leading developers of computer games. Including game such as Vsteps ship simulators.

Logistics sector:
The Netherlands is ranked 4th in 2010 world bank global logistics performance index. From the port of Rotterdam, all major industrial and economic centers in westerns Europe can be reached in less than 24 hours. The Netherlands won three awards at the 2010 Arias fredight and supply chain awards for best sea port in Europe. Dutch transport companies account for about 13% of all cross border road transportation of goods within the EU. The Netherlands has the 2nd largest cooling and freezing storage capacity in Europe.

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 Energy sector:
The Netherlands is a major natural gas producer. And the source of advanced gas technology. Besides it is also Europes leading gas broker and strategic gas hub 15-20% of gas consumed in Europe comes from Holland that is why it has densest and very high standard distribution network for gas in Europe . Holland also have a good position in research in renewable energy due in part to the work of the energy research centre ECN . The Netherland ranks 6th worldwide with regard to patent application involving solar PV. The Dutch have leading expertise in offshore wind energy combustion of biomass in coal fired power plant pre-treatment methods of biomass the use of landfill gas an the use of heat pumps combined with heat and cold storage. Every year 6.3 million tons of municipal waste is converted in 12 efficient and clean waste incinerators to power, heat and reusable resources from the ashes. The Netherlands is establishing itself as leader in green gas, Green gas technology, the gasification of biomass has been patented by Dutch energy company ECN. In 2010 the annual production of green gas from biogas was 37 million NM3

Water:
The Dutch are renowned for their integrated water management and multi disciplinary approach that balances social, economic, environmental and energy needs. The Dutch DELTA works are listed in Guinness book of records for the largest tidal barrier in the world. In the field of water purification, the Netherlands ranks 5th world wide for global patents. The Dutch began using innovative waste water treatments techniques in the 1970. Some 99.9% of Dutch households have access to clean, entirely chlorine free drinking water.

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 High-tech sectors:
Hollands high tech sector is a world leader in the development of new technologies and materials for use in communication systems, aircraft, automobiles, medical devices, energy generation, and semi conductor production. Dutch companies invented Wi-Fi, the CD and the DVD. Bluetooth technology invented by Dutchmen Joap Haorsten. High tech equipments from Dutch companies are used in 90 % of all silicon chips produced world side. The Netherlands ranks among world top 3 nano science countries, together with Switzerland and The USA. Dutch multinational ASML is the worlds leading provider of lithography machines for semi conductor industry. In 2009, the export volume form high-tech system machines was 32 billion euros, the production value 73 billion euros, and value added 23 billion euros.

Government support to industrialization:

The complex building known as the Binnenhof in the Hague is the seat of the Dutch government. The Netherlands is one of the most stable nations in the world with a competitive fiscal climate. If we leave the recent extra stimulus expenditure government finances are relatively healthy.

Government effectiveness :
As per the world bank, the government of the Netherlands is one of the most effective in the world which make it easier for companies to make medium and long term decisions regarding investment in the country. The figures for government effectiveness capture the perception of the

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quality of public services, the quality of policy formulation and implementation and the credibility of the government commitment to their policies.

Rank
5 4 3 2 1 0 Denmark Finland Sweden Rank Netherland Canada 1 Rank 3 2 4 5

Source: world bank 2010

National Debt as percentage of GDP:

The Netherland was able to dramatically reduce its level of government debt in the years preceding the global economics crisis due to favorable economy and reasonably stringent fiscal policy .In 2008 there was even a budget surplus for the third consecutive year . Dutch government debt as a percentage of GDP was higher than the EMU standard of 60% in 2011 but it was still well below the average for the Euro zone.

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scores
80 60 40 20 0 scores 18.2 38.2 46.5 65.2 72.2

Source: Eurostat 2012

corruption perception index :

According to the transparency international corruption index levels of corruption and nepotism in the Netherland are among the lowest anywhere in the world among the aspects of corruption that were the degree to which people in authority such as customs, police officers, judges and other officials misuse their position for personal gain. The corruption perception index gave 84 score out of 100 which make 9th rank of the country in corruption perception index 2012

Corporate tax rate on profit:

The corporate income tax rate is 20% on the first 200000 euros and 25% for taxable profits exceeding 200000 euros which is below the EU national average. Companies can benefits from an effective tax rate of only 5% for R&D income from self developed, unpatented, intangible assets. Other features of the Dutch tax system include a wide tax treaty network the participation

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exemption which states that all benefits related to a qualifying shareholding are exempt from Dutch corporate income tax, and finally a 30% tax break for highly qualified foreign employees.

corporate tax rate on profit 2012 (%)

30 25 25 20 15 10 5 0 Ireland Switzerland Austria Denmark Netherlands 12.5 Series 1 21.17 24.8 24.8

Source: IMD 2012

TRADE RELATIONSHIP WITH NEIGHBOR Most significant trading partner: Western Europe
The role of the Netherlands as a key distribution location is also indicated by the volume of import and export of import and export activities almost 82% of Dutch exports remain Europe especially western Europe Germany is easily the Netherlands most significant trading partner followed by Belgium, the United Kingdoms and France.

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values in billions of euros

2.6 18.5 12.3 8.5 34.3 2.1 All of Europes All of Africa All of North America All of central and south america Near and Middle East Asia Oceanic 326.8 Asia

Sources: Statistics Netherlands 2012

Gateway to Europe :
The Netherlands has become a key hub for distribution in Europe because of its favorable location in relation to the European hinterland and the countrys world class air and sea ports such as port of Rotterdam and Amsterdam airport schiphol the Netherlands is home to more distribution centers than anywhere else in Europe and has the largest inland shipping fleet in Europe. Values in billions of euros
66.4 1.4 All of Europe All of Africa 13.1 15.9 25.9 12.4 228.5 All of North America All of central and South America Near and Middle East Asia oceanic

Source: Statistics Netherlands 2012

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Condition of F.D.I in the country :

The Netherland is the 9th largest investor in the world as it has some world wide company Dutch businesses are truly international in their orientation Dutch based multinationals such as AkzoNobel, Heineken, KPN, ING, Philips, Unilever and shell have made substantial foreign investments in the past the total value of Dutch investments in other countries is considerable in late 2010 investments oversea totaled in excess of $943 billion making the Netherland the ninth largest foreign investor in the world. It is remarkable that a small country such as the Netherland attracts so much foreign investment according to the Netherland foreign companies including the likes of BASF, Cisco System, Microsoft ,Nike , Sabic ,Siemens and Yakult foreign companies have made direct investments worth $589 billions as a result the Netherland is the worlds ninth largest recipient of foreign investment with foreign investors providing 15% of the total number of jobs in the Netherlands

Number of entrepreneurs (2009)

The Dutch have always been well been known for their entrepreneurial spirit which is reflected in the countrys large number of entrepreneurs 11.9% of the Dutch working population is self employed. The Dutch government promotes start ups because they create economis vitality and innovation and because they challenge exisiting firms, giving them the incentives to adapt and continue to innovate.

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Measured as % of the working population

16 14 12 10 8 6 4 2 0 Australia Canada Netherlands Belgium Measured as % of the working population 14.4 12.3 11.9 11.5

Source: Statistics of Netherlands 2012

Most innovative country

The Netherlands scores well on the Global Innovation Index (GII) 2012 of INSEAD and World Intellectual Property Organization according to the GII ranks 125 countries on parameters such as Knowledge diffusion (7th). According to the 2011 Innovation Union Scoreboard (IUS) distinguishes between 3 main types of indictors and 8 innovation dimensions, capturing in total 25 different indicators.

R&D expenditure
R&D expenditure in the Netherlands at 1.85% of GDP is modest from an international perspective. However this can partly be explained by the Dutch sector structure. The service sector which naturally has a low R&D intensity makes up a relatively large share of the Dutch economy public-partnership in research are a major factor and the Netherland ranked 6th worldwide in this area.

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INFRASTURUCTURE
The Netherlands has a number of key logistics hubs such as the Port of Rotterdam and Schiphol Airport, as well as high penetration of broadband Internet this provides the country with a sound physical infrastructure and consequently enables it to be a top performer in terms of logistics

Navigable inland waterways

The Netherlands has a good physical infrastructure with the world class main ports and the navigable inland waterway has excellent connections to the waterways in the rest of Europe. After Denmark the Netherlands has the best water transport infrastructure in the world it also has an extensive road transport network and is third in the world with regard to network density. According to IMD 2012 the Dutch energy infrastructure also scores well taking fifth place overall.

scores
9.28 9.26 9.24 9.22 9.2 9.18 9.16 9.14 9.12 9.1 9.08 9.26

9.2 9.18 9.15 scores

Denmark

Nethrelands

Finland

Iceland

Sources: IMD 2012

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Strong in logistics
The Netherlands strong position in terms of logistics is due to the favorable geographic location of the country at the heart of Europe a sound infrastructure that includes the Port of Rotterdam, the Port of Amsterdam, Amsterdam Airport Schiphol and a sophisticated logistics sector. This is reflected in the World Bank Logistics Performances Index 2010, where the Netherlands is ranked fourth the Netherlands came out on top in terms of the efficiency and effectiveness of its Customs and other border procedure, the quality of its transport and IT infrastructure for logistics the ease of use and affordability of its shipping and the level lf professionalism in the Dutch industry.

scores
4.2 4.18 4.16 4.14 4.12 4.1 4.08 4.06 4.04 4.02 4.19 4.18

4.1 4.08

scores

Germany

Singapore

sweden

Netherlands

Source: world bank 2010

European airport traffic and transport 2011

Amsterdam Airport Schiphol is the third largest freight and fourth largest passenger airport in Europe. More than 49.7 million passengers passed through the airport in 2011. Cargo volume
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increased to more than 1.5 million tons. A total of 103 airlines offer direct flights from Schiphol to 313 destinations all over the globe. Schiphol is also renowned for its outstanding baggage handling system. Furthermore the airport has won more than 176 national and international awards since 1980 Schiphol is home to a museum which is the first of its kind in the world and features exhibits that include paintings by Old Dutch masters such as Vincent van Gogh and Rembrandt. It is also the first airport in the world with a library and airport park.

80000 70000 60000 50000 40000 30000 20000 10000 0

69,391 56,293 60,908 49,681

cargo transport x1,000 tonnes 2133 2088 1524 1484 passenger transport x1,000 passengers

Source: Schiphol Group 2012

Largest Port in Europe

The Port of Rotterdam is the largest port in Europe. The trans-shipment in Rotterdam added upto 434.6 million tons in 2011 a new record. Also the number of containers handled reached a record level in 2011 of 11.9 million TEU. Business often choose to locate in and around the Port of Rotterdam because of its strategic location in north-west Europe, its depth the many port facilities and its excellent links with the hinterland many companies from America and Asia use Rotterdam as their base for the
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distribution of goods throughout Europe work on the this 2 project is currently on going this historic land reclamation project will expand the area of the Port of Rotterdam. The first phase will be completed in 2013 which is when the first containers will across the quay the combined activities of the port account for about 5% of the GDP more than 90000 people work directly for the port of Rotterdam.

500 450 400 350 300 250 200 150 100 50 0 Netherlands Belgium Germany 11.9 8.7 9 187.2 132.2 Trans-shipment(in millions of tonnes) Containers (in millions of TEU) 434.6

Source: Port of Rotterdam 2012

Conclusion
If we see the different graph then we will find that country has done tremendous progress in almost all sectors since last many decades. There was a little bit shake in the progress in of the economy of the country but right steps taken by the policy maker of the country at right moment due to which country did not suffered as much loss as it should afford because the economy of the country is heavily depend of the exports of the product. The country has not fought any

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serious war since World War II so it is very peaceful country to do the business it has very friendly relation with its neighbor and some its biggest trade partner is also its neighbor like Germany due to the peaceful environment government is giving ample attention to the development of the social and economic factor of the country due to which it is consider as the 5 best destination to live and doing business the corruption transparency index shows that the functioning of the government is free from the corruption so it has well educated population has 4th largest user of the information technology due to high level of education it has good proportion of export and import in the GDP of the country the 9 sector given above in the report are its most fruit full sector it is the 9thlargest foreign investor in the world and in the year 2011 it attracted $529 US billion foreign direct investment in the country so the country is highly suitable for doing the business as the availability of opportunity is higher in comparison to any other nation and the support of the government is also more so the place is safe to grow investor's money

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BIBLIOGRAPHY

World financial development report 2012 Global competitiveness report 2012 World governance indicators (world bank) Corruption perception index 2011 Ministry of trade and commerce the Netherlands Ministry of social welfare Statistics report of the Netherlands 2012 Ministry of tour and travels Finance ministry of the Netherlands UNDP

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