Custom research paper on PORTUGAL AND EUROPEAN CRISIS

OPPORTUNITIES TO DO BUSINESS IN PORTUGAL
In such a context, many investors are concerned with opportunities to do business in Portugal. In this regard, many investors are skeptical about the possibility of investments in Portugal today. Their anxiety will grow as long as the economic crisis in Portugal persists. Therefore, the first to attract investors to Portugal will be consistent improvements in Portuguese economy are needed. Escape from the trap generally requires devaluation of the currency, which cannot happen among countries that use the euro as their common currency, or strong economic growth, which none of the three countries at risk of default, including Greece, Portugal and Spain, have, or some kind of bankruptcy process, which all three forswear (Erlanger, 2011). The EU should help Portugal to cope with its economic crisis but the mere lending of money to Portugal does not work. New methods of support are needed. In this regard, investors can become the third power, which can help to revive the Portuguese economy. What is meant here is the fact that the consistent rise of investments in Portugal will stimulate the revival of the national economy. Therefore, the country will become able to pay off its debt and improve its balance of payments. Substantial investments in Portugal will not only help the country to cope with the economic crisis but also prevent the spread of economic crisis to the EU, where the economic situation is already far from perfect.
At the same time, policy-makers and investors should understand that the problems of the weaker countries in the EU, like Portugal are not just sovereign debt, but also lack of competitiveness, both in Europe and the larger world. Without the nations’ restoring competitiveness and selling more goods abroad, which can come only through a longer-term process of reducing wages and taxes to spur private sector investment, economists are not optimistic about prospects for new growth soon (Erlanger, 2011). Therefore, investments may become an effective tool, which can help to increase the competitiveness of the Portuguese economy because investors launching their business in Portugal would focus on the quality of products and services they sell because the quality is crucial for their success in European market. In this regard, overseas investors should be particularly interested in Portugal because through entering Portuguese market they enter the EU market. custom research paper
In the context of the economic decline, investments in Portuguese economy can bring considerable benefits, when the national economy starts to recover. At the same time, the current situation is favorable for investments and launching business in Portugal. In this respect, it is necessary to take into consideration several factors. First, the housing, real estates, and business prices in Portugal fall down rapidly. Therefore, investors can purchase real estate at low price that facilitates launching business in Portugal. Second, the costs of the labor force drop too, while the unemployment rate grows rapidly. The low costs of the labor force mean that new business will save money on the labor force. Therefore, they can either increase their benefits or set more competitive prices for their products and services. The latter is particularly beneficial because the rise in competitiveness is an essential condition of the successful resolution of the current economic crisis in Portugal. Anyway, highly competitive products and services will put business in an advantageous position compared to rivals.
RECOMMENDATIONS
Taking into consideration the backup of Portugal from the part of the EU, investors can count for the recovery of Portuguese economy. At any rate, the default of Portugal will be a disaster for the EU. Therefore, the EU will definitely do its best to help Portugal to recover. At the same time, investors should understand that investing in the Portuguese economy will bring considerable profits in a long-run perspective because Portugal opens European market for investors launching their business in this country.
Therefore, investors should consider the possibility of launching business in Portugal to gain a large market share at relatively low price because the costs of labor force, property prices and value of local businesses have dropped consistently, while they have preserved their assets. In a long-run perspective, investments in the economy of Portugal may bring considerable benefits. Therefore, investors should develop business in Portugal. However, investors should cooperate with the government. At any rate, the government should create conditions for investors. The government should guarantee the stable fiscal policies and favorable conditions for business development, including simplification of organizational policies.
In this regard, investments in the leisure industry open wide prospects, because it is possible to purchase facilities at relatively low price and save on the labor force. In addition, Portugal always attracts tourists from Europe and other countries of the world. Consequently, companies investing in the local leisure industry can reap considerable profits, at least, in a long-run perspective.
On the other hand, investors should be very careful and pay attention to current socioeconomic and political changes in Portugal and the policy of the EU and the ECB in relation to Portugal. In fact, the EU is the major ally of Portugal and the EU is as interested in the economic recovery of Portugal as Portugal is because the deterioration of the economic situation in Portugal affects the EU.
CONCLUSION
Thus, taking into account all above mentioned, it is important to place emphasis on the fact that Portugal faces the profound economic crisis, which affects the EU as well. Portugal needs the assistance of the EU to overcome its economic crisis and to improve its balance of payments. In such a situation, investors are very concerned with the further development of the economic situation in Portugal. In spite of the economic crisis, Portugal still remains an attractive country for investors and business development because, today, the low costs of the labor force and dropping real estate price as well as the overall deterioration of the economic situation in Portugal open larger opportunities for investors to start business in Portugal, which opens the way to European market at large.