About Austria

Austria is a landlocked country, set in the heart of Europe with a population of scarcely more than eight million people. It has little in the way of natural resources and relies heavily on its larger neighbour Germany in both import and export terms. Yet despite these seeming handicaps, Austrians enjoy an extremely high standard of living and an economy which is relatively robust. This is, in no small measure due, to the drive and application of those eight million Austrians. Although the current State of Austria has only existed in its current form since 1955, the country has a long and distinguished history. The capital, Vienna, was for centuries one of the major centres of the European world and as the fulcrum of the Austro-Hungarian Empire was, for a long time, a magnet for the best and the brightest amongst Europes intelligentsia. During the Cold War period, the country managed to steer an impressively neutral path between the two competing super powers and the contacts Austrians managed to develop into the old Soviet Bloc countries during that period now stand them in good stead when developing business contacts in the burgeoning markets of Central and Eastern Europe. Austria is a country with an auspicious past and a bright future. Perfectly located to take advantage of the development and enlargement of the EU, the country has the human capital and highly developed infrastructure needed to act as bridge between Western and Eastern Europe.

PROFILE Geography Area: 83,857 sq. km. (32,377 sq. mi.) Cities: Capital-Vienna (2007 pop. 1.68 million). Other cities - Graz, Linz, Salzburg, Innsbruck, Klagenfurt. Terrain: Alpine (64%), northern highlands that form part of the Bohemian Massif (10%), lowlands to the east (26%). Climate: Continental temperate.

People Population (2010): 8,032,926 Annual population growth rate (2009): 0.4%. Religions (2001 census): Roman Catholic 73.6%, Lutheran 4.7%, Muslim 4.2%, other 5.5%, no confession 12.0% Language: German about 90%. Austrians are relatively homogeneous, about 90% speak German as their everyday language.

Education: Years compulsory - 9, Attendance - 99%, Literacy - 98%. Work force (2009, 4.2 million): Services - 67%, agriculture and forestry - 5%, industry - 28%.

Cuisine of Austria Austrian cuisine, which is often incorrectly equated with Viennese cuisine, is derived from the cuisine of the Austro-Hungarian Empire. Austrian cuisine is known primarily in the rest of the world for its pastries and sweets.

Coffee: Einspnner, it is classically served in a glass.

Beer: Beer is generally sold in the following sizes: 0.2 litre (a Pfiff), 0.3 litre (a Seidel, kleines Bier or Glas Bier) and 0.5 litre (a Krgerl or groes Bier or Hoibe).

Wine: Wine is principally cultivated in the east of Austria. The most important wine-producing areas are in Lower Austria, Burgenland, Styria, and Vienna.

Sports Common sports in Austria are association football (soccer), skiing, and ice hockey. Austria's national ice hockey team ranks 13th in the world.

Education in Austria Four years of elementary school (Volksschule for ages 610) are followed by secondary education in a Hauptschule, or the first four years of Gymnasium as intermediate school. It has to be noted that in particular in the rural areas, there is quite often no gymnasium available, so everyone attends the hauptschule. After the age of 14, students have their first real choice to make, no matter which they have attended until then. All state-run schools are free of charge. The largest university is the University of Vienna.

Religion 73.6% of the native population identify themselves as Roman Catholic, while 4.7% consider themselves Protestant.

Government Type: Federal parliamentary democracy. Constitution: 1920; revised 1929 (reinstated May 1, 1945). Branches: Executive--federal president (chief of state), chancellor (head of government), cabinet. Legislative bicameral Federal Assembly (Parliament). Judicial--Constitutional Court, Administrative Court, Supreme Court. Political parties: Social Democratic Party, People's Party, Freedom Party, Greens, Alliance-Future-Austria.

President-Heinz Fischer

Chancellor-Werner Faymann (SP)

President of the National Council-Barbara Prammer (SP)

Independence: 27th july 1955

Economy GDP (2010): $376.1 billion Real GDP growth rate (2010): 2.1% Per capita income (2010): $44,830

Currency: Euro () (EUR) Natural resources: Iron ore, crude oil, natural gas, timber, tungsten, magnesite, lignite, cement. Agriculture (1.5% of 2010 GDP): Products - livestock, forest products, grains, wine, sugarbeets, potatoes. Industry (29.2% of 2010 GDP): Types - iron and steel, chemicals, capital equipment, consumer goods. Services: 69.3% of 2010 GDP Trade (2010):

Exports - $144.8 billion: iron and steel products, timber, paper, electro technical machinery, chemical products, foodstuffs.

Imports - $150.4 billion: machinery, vehicles, chemicals, iron and steel, metal goods, fuels, raw materials, foodstuffs.

Principal trade partners: European Union, Switzerland, China, and the United States.

Doing Business with Austria For the business person who works internationally, doing business in a foreign country brings with it certain intercultural communication challenges. From the simple differences in the way people meet, greet and eat to the

more complex differences in communication, presentations and negotiation it is always a benefit to get to understand a country's business culture, protocol and etiquette.

Austrian Business Structures After the creation of the current state of Austria and during its post-war reconstruction stage, most basic industries were state-owned and although the level of state involvement in industry has been radically cut back through a series of privatisation measures, the legacy of bureaucracy and hierarchy remain. Thus most large Austrian organisations would tend towards a high level of hierarchy, with companies managed along fairly tightly defined functional lines. The organisation chart usually reflects the reality of the structure of a business, rather than being merely designed to impress visitors. The head of a business function will wield a great deal of power within that business function and can seem to act in an almost autonomous manner, with little reference to other functional heads. (See management style) Austrian business has always prided itself on the concept of Sozialpartnerschaft, or social partnership, which promotes dialogue and co-determination in industrial relations matters. Thus, all industries, trades and professions have specific bodies which work together to promote and conduct good labour relations. (Trade union membership is high but industrial unrest is not.) It is, therefore, extremely important to work to develop a strong sense of co-determination and co-operation when working with Austrian subsidiary companies.

Austrian Management Style As would be expected in a mainly hierarchical business culture, managers are less consensual than would be the case in countries where a more inclusive, matrix-style approach is employed. Therefore, managers can tend towards the directive they give direct instructions to subordinates who will, by and large, carry them out to the letter. This also means that managers are expected to make the decisions and would involve their colleagues in the decision-making process to a much lesser degree than might be the case in a consensus-oriented countries such as Sweden or the Netherlands. Managers are expected to be sector/function experts and as such should know the answers to problems. This directive management approach goes hand-in-hand with an almost old-fashioned sense of politeness and courtesy. Do not imagine a tyrannical boss barking orders at frightened subordinates. Everything is done with great charm and warmth. In fact 'charm' would be seen as one of the attributes of a good manager.

Austrian Meetings Meetings are formal affairs and people would be expected to arrive well-prepared. Austrians would be classified as pre-planners in terms of their approach to meetings. It would be unprofessional to arrive at a meeting and to start looking through the papers as the meeting is beginning. Brainstorming type meetings might occur but it would be obvious to all concerned that the meeting was not for decision-making or information exchange in advance and everybody would prepare accordingly. Great emphasis is placed on punctuality and everybody is expected to arrive on time. It is considered to be extremely inefficient to arrive late and can be classified as stealing people time. On the whole, meetings will run

to schedule and finish on time. (Meetings may be scheduled quite early as the typical working day runs from 8:00 am to 17:00 pm in Austria)

It is usual for the senior person present to control the meeting and agendas tend to be followed assiduously. The meeting leader will invite people to speak and it is not expected that people will be interrupted or that strong emotions are shown. Actions will be agreed, written down, distributed and acted upon. In a culture which places great emphasis on specialisation, people are expected to speak when they have something to say about something within their area of expertise. Do not feel the need to speak if you have nothing relevant to say.

Austrian Teams Teamwork in Austria revolves around individuals who work on tasks given to them by the team leader. The team members would expect to be given clearly defined instructions and goals by their manager and will then expect to be allowed to pursue those goals without too much interference or questioning. People would not really expect their team roles to be interchangeable, nor would they expect to be asked to do the tasks allocated to another team member. Demarcation lines can be quite strong. Cross-departmental teams can often prove very difficult to manage, as people are asked to make decisions in a vacuum which might adversely affect their area of the hierarchy. Thus decisions made at cross-departmental project group level are often revisited after group members have reported back to their superiors.

Meeting and Greeting Handshakes are the norm in Austria when entering a meeting. It is important that you shake hands with all attendees and that your handshake is firm and confident and that eye contact is maintained. Austrians adhere to a fairly formal culture and it is unlikely that body contact will progress beyond the handshake (e.g. pat on the back etc.) unless you are family or close friends. When doing business in Austria you should use honorific titles where necessary. After the initial meeting, in which an individual will be introduced with their honorific title and surname, it the surname can be dropped and the honorific title only used. If someone does not have an honorific title, then you should use 'Herr' to address a man and 'Frau' to address a woman with their surname. You should wait for your Austrian hosts to determine when it's appropriate to move to the use of first names. If you are invited to your Austrian colleague's home, it is customary to bring a small gift, such as a selected wine, a box of chocolates, etc. Most business people in Austria have a good command of English. Punctuality in Austria, as in Germany, is renowned throughout the world. Make every effort to arrive for a meeting at the appointed time or, if you are a few minutes late, make your apologies to your colleague. In many places in Austria, including restaurants, there is a strict ban on smoking. Try to smoke only when the people around you are doing so. You are recommended to avoid making business appointments for the months of July and August as well as around the dates of Austrian national holidays.

Austrian Communication Styles Communication can seem a little formal to those cultures who are accustomed to using the more informal convention of addressing colleagues by their first names within the business environment. It is still customary in Austria to use family names in the workplace even with quite close colleagues. Although there is some evidence that the younger generation are moving away from this convention towards the use of first names, it is still probably wise to use family names with when meeting new business colleagues - until asked to switch to first name terms. (It is not unusual to hear Austrian business people addressing each other by first names when speaking English in a meeting and then changing immediately back to family names when the language switches back to German.) It is also common for people to be addressed by their titles either academic or professional as great store is placed on academic qualifications and the prestige they bring. When working with Austrians (and many other European countries) it is a good idea to ensure you have all your academic qualifications visible on your business card. As with all German-speaking countries, direct communication is appreciated. Lack of directness in discourse can be mistaken for lack of clarity of thought or, at the extreme, dishonesty. Thus those cultures which tend to be more diplomatic and worried about causing offence by being too direct should try hard to ensure the use of a literal form of communication. Ensure that what you say relates to what you mean. As has already been stated, charm and old-fashioned courtesy are much in evidence and are highly-prized qualities. Warmth and a genuine sense of hospitality await the business traveller to Austria.

Business Meeting Etiquette Appointments are necessary and should be made 3 to 4 weeks in advance when meeting with private companies. Do not try to schedule meetings in August, the two weeks surrounding Christmas, or the week before Easter. Punctuality is taken extremely seriously. If you expect to be delayed, telephone immediately and offer an explanation. It is extremely rude to cancel a meeting at the last minute and it could ruin your business relationship. Meetings are formal. Presentations should be accurate and precise. Have back-up material and be prepared to defend everything: Austrians are meticulous about details. Meetings adhere to strict agendas, including starting and ending times. If you have an agenda, it will be followed. Follow-up with a letter outlining what was agreed, what the next steps are, and who is the responsible party.

Meetings and Negotiation Austrians place great emphasis on supporting data and as such, if presenting an idea or proposal during a meeting, it is recommended that you back your presentation up with graphs or other supporting data which clearly demonstrates the points you are making.

You will find that your hosts are meticulous about detail and it is important therefore that the data is robust and does not lay grounds for challenge. You are also advised to have any materials translated into both English and German

Austrian Dress Code Dress code in Austria tends towards the more formal and people take a pride in their appearance. Therefore, it is safest to wear smart, business-like clothes for first meetings in order to make a professional impression. Men are best advised to wear a dark suit or smart sports jacket with trousers and a tie. Women should wear smart business suits or dresses. As with many western countries, attitudes with regard to what is business-suitable in terms of dress is changing rapidly and, if in doubt, it is best to check with a local contact in advance. Remember that it gets cold in Austria so make sure to pack appropriate clothing for the season.

Business Cards Business cards are exchanged without formal ritual. Have one side of your card translated into German. Although not a business necessity, it demonstrates an attention to detail. Include any advanced academic degrees or honors on your business card. If your company has been in business for a long time, include the founding date on your card as it demonstrates stability.

Successful Entertaining in Austria Austria does not have as strong a business entertaining culture as some other, more southern European cultures which reflects the strong separation which is often made between work and private life. Thus, it is fairly unusual to be taken out for dinner and even rarer to be invited to someones home. Most business entertaining is done over lunch usually at a good restaurant. (Breakfast meetings are extremely rare in Austria.) During a business meal, it is possible to talk about business, but it might be wisest to delay introducing work related issues until the host raises the matter. If invited out for a meal, the host will always expect to pay. Similarly, if you invite someone for a business lunch, you will be expected to pick up the bill. In Austria, both the knife and fork are used throughout the meal. Eating with only one hand, with the other hand placed on one's lap under the table, (as is common in North America) is not considered particularly good table etiquette. Alcohol will usually be offered at lunch and dinner but many Austrians will refrain from drinking at lunch time. It is probably best to take your lead from your host. It is quite usual to tip in Austria. A tip of around 10% should be given directly to the waiter at the end of a meal.

Top Tips on Austrian Business Culture 1. Due to certain historical and cultural influences, Austrian companies tend towards a hierarchical approach to corporate structure. 2. Try to find the organisation chart of the company you are dealing with - it usually gives a close reflection of the way in which the company is actually organised. 3. Social partnership has, for a long time, been a central tenet of the Austrian approach to business. Cooperation and co-determination in industrial matters are of paramount importance. 4. Managers tend to be instructional and are expected to give direct instructions to subordinates. 5. In a country which tends towards the development of specialists, managers are usually sector-area experts. They know what they are talking about. 6. Charm and warmth are much prized characteristics and managers will strive to achieve a 'cosy' relationship with colleagues. 7. People are expected to be very well prepared for meetings - do not arrive without having thought through the detail of the meeting in some depth. 8. If 'brainstorming' meetings are to be held, it is best to make sure everybody knows exactly what is expected within the meeting and what the goals of the meeting are. 9. Punctuality is prized. Do not be late as this could be viewed as unprofessional behaviour. 10. A certain amount of small talk can be expected at the start of a meeting. 11. Do not assume that Austrians are exactly like Germans. Austria is a country with a great sense of historiy and a unique culture. 12. Meetings will be run in a methodical fashion with the agenda, by and large, adhered to. Try to avoid deviating from the set agenda unless it is absolutely unavoidable. 13. Meetings may be arranged early in the morning as Austrians tend to start at 8:00 am. 14. In a meeting situation, avoid speaking for the sake of speaking. Speak only when you have something relevant to say about a topic which you are knowledgeable upon. 15. Surnames are usually used in business circles as are academic and professional titles. 16. Dress code still tends towards the formal and it is best to wear conservative, business-formal attire ' this applies to both men and women. 17. Most business entertaining will be done at local restaurants. It is unusual to be invited to the home of a business colleague for a meal.

Indias exports to Austria in categories for the last 5 years (in ) SITC ITEM 0 FO OD A N DLIVE A N IM L A S 1 BEVERAGES A N DTOBACCO 2 CRUDE MATERIA L INEDIBLE, EXCEP T FUELS S, 3 MINER A LFUELS, LUBRICANTS AN D REL .MA TERIALS 4 A N MA LA N DVEGETABLE OILS, FATS AND WAXES I 5 CHEMICA L A N DRELA TED P RODUCTS, N.E.S. S 51 ORGANI C CHEMICALS 54 MEDICINA LAND PHA R MACEUTICA LPRODUCTS 6 MA N U FACTURED GO ODS CLASSIFIED BY MATERIA L 65 TEXTILE YARN, FABRICS AND MADE-U P ARTICLES, 66 NONMETA L MINER A LMA N U LIC FACTURES, N.E.S. 67 IRO NA N DSTEEL 7 MACHINERY A N DTRA N S ORT EQUIPMENT P 71 POWER GENERATING MACHINERY A N DEQUIPMENT 72 MACHINERY SPECIALIZED FOR P ARTICULA R INDUSTRIES 73 META L WORKING MACHINERY 74 GENERA LINDU STRIA LMACHINERY AND EQUIPMENT 77 ELECT R LMACHINERY, A P P A ICA RATU S A N D 78 RO A DVEHICLES (INCLUD ING AIR-CU SHION VEHICLES) 8 MISCEL L N A EOUS MANUFACTURED ARTICLES 84 ARTICLES OF A P P AEL A N DCLOT HING ACCESSORIES R 85 FO OTWEA R 87 P ROFES SIONA L SCIEN T AN D CONTROL L , IFIC ING 9 COMMOD I IES NO T CLASSIFIED ELSEWHERE T TOTA L 2009 23,134,792 2,489,592 5,465,628 2 81,282 58,228,176 18,175,543 32,353,250 74,654,289 37,942,468 14,166,024 3,544,784 1 13,559,266 1 1,821,361 3,307,757 921,121 20,155,281 21,862,859 51,745,140 161,816,102 103,402,147 32,833,993 1,435,461 439,429,129 2010 19,135,604 999,753 7,913,591 1,026 40,714 65,491,155 19,535,053 36,755,060 82,248,908 39,146,087 16,364,571 4,899,645 127,377,762 9,041,267 5,814,459 429,510 19,006,259 39,325,511 48,205,098 179,935,005 107,372,902 41,447,466 2,158,943 1,973 483,145,491

Indias im portsfrom Austria in categor for the last 5 years (in ) ies SITC ITEM 0 FO OD A N DLIVE A N IM L A S 1 BEVERAGES A N DTOBACCO 2 CRUDE MATERIA L INEDIBLE, EXCEP T FUELS S, 3 MINER A LFUELS, LUBRICANTS AN D REL .MA TERIALS 4 A N MA LA N DVEGETABLE OILS, FATS AND WAXES I 5 CHEMICA L A N DRELA TED P RODUCTS, N.E.S. S 51 ORGANI C CHEMICALS 54 MEDICINA LAND PHA R MACEUTICA LPRODUCTS 6 MA N U FACTURED GO ODS CLASSIFIED BY MATERIA L 65 TEXTILE YARN, FABRICS AND MADE-U P ARTICLES, 66 NONMETA L MINER A LMA N U LIC FACTURES, N.E.S. 67 IRO NA N DSTEEL 7 MACHINERY A N DTRA N S ORT EQUIPMENT P 71 POWER GENERATING MACHINERY A N DEQUIPMENT 72 MACHINERY SPECIALIZED FOR P ARTICULA R INDUSTRIES 73 META L WORKING MACHINERY 74 GENERA LINDU STRIA LMACHINERY AND EQUIPMENT 77 ELECT R LMACHINERY, A P P A ICA RATU S A N D 78 RO A DVEHICLES (INCLUD ING AIR-CU SHION VEHICLES) 8 MISCEL L N A EOUS MANUFACTURED ARTICLES 84 ARTICLES OF A P P AEL A N DCLOT HING ACCESSORIES R 85 FO OTWEA R 87 P ROFES SIONA L SCIEN T AN D CONTROL L , IFIC ING 9 COMMOD I IES NO T CLASSIFIED ELSEWHERE T TOTA L 2009 5,867,892 3,086,882 14,419,080 36,595 249 57,917,962 30,659,631 7,692,599 1 18,499,184 4,1 13,994 21,799,868 50,061,938 316,568,038 42,010,362 73,953,794 28,483,513 82,535,831 38,716,131 15,879,018 44,022,202 76,595 15,643 32,432,547 560,418,084 2010 2,001,1 18 3,748,938 18,293,488 27,573 26 71,141,005 35,355,511 12,931,672 170,722,268 3,960,150 36,091,301 82,249,667 327,496,996 42,866,480 60,096,473 44,363,498 66,126,350 59,277,978 1 1,500,091 61,435,549 185,817 41,560 31,530,469 8,781 654,875,742