Eastern Europe
Romania
Geography
Romania is a country in southeastern Europe, bounded on the north by Ukraine; on the east by Moldova; on the southeast by the Black Sea; on the south by Bulgaria; on the southwest by Serbia; and on the west by Hungary. Bucharest is the capital and largest city. Romania has a land area of about 91,700 square miles making it about one and one-half times the size of Nebraska.
An extensive elevated plateau region covers most of central and northwestern Romania. This plateau is called Transylvania and is surrounded by the Carpathian Mountains. Stretching from the mountains are hills and tablelands full of orchards and vineyards and flat lowlands where cereal and vegetable farming takes place. The Tisza Plain covers Western Romania. The most important river in Romania is the Danube, and Romania’s other major rivers are part of the Danube system
Romania has a temperate climate with four distinct seasons. Temperatures are cooler in the mountains, while the hottest summers are located in the lowlands. Rainfall is heaviest during April, May, June, September, and October. Yearly rainfall averages about 25 inches.
The principal resources of Romania are agricultural, but Romania has significant mineral deposits of petroleum, natural gas, salt, hard coal, lignite, iron ore, copper, bauxite, chromium, manganese, lead, and zinc. Timber is also and important resource. About 43 percent of Romania’s land is cultivated, and the soil in most of the country is fertile.
Economy
Romania has a Gross Domestic Product of $38.2 billion. Services make up the largest portion of GDP with 43.4%, followed closely by industry with 40.1% and by agriculture with 16.4%. The majority of Romania’s trading partners are current members of the EU including Germany, Italy, and France; however, Turkey is also one of Romania’s major markets. Romania’s currency is the lei. As of 07 February 2001, the exchange rate per $1 was ROL26,650.
Before the 1960’s, Romania’s economy was based on agriculture. Under the Communist government, industry passed agriculture as the leading producer of income. Under this regime, the national government controlled the entire economy. After the collapse of the Soviet Bloc in 1989-91, Romania was left with an obsolete industrial base and a pattern of industrial capacity unsuited to its needs. The legacy of the communist regime, extreme centralization, a high degree of bureaucracy, and no experience of partial reforms left Romania with one of the longest paths towards a market economy.
The successive governments, which ruled the country between 1989-1996, avoided serious economic reform, fearing "shock therapy" and its anticipated social costs. In February 1997, Romania embarked on a comprehensive macroeconomic stabilization and structural reform program, but so far, this program has been a frustrating stop-and-go process. Restructuring programs include liquidating large energy-intensive industries and major agricultural and financial sector reforms.
Exports experienced a sharp decline in the early 1990’s due to the decrease in domestic production, the dissolution of the Comecon market, and the costs of observing UN sanctions against Iraq and Serbia, but have since revived. Exports for Romania include textiles, chemicals, light manufactures, wood products, fuels, and processed metals. Romania relies heavily on imports, of which up to 50% are raw materials. These imports consist mainly of oil and gas but include cooking coal, iron ore, machinery, wheat, cotton, and potatoes.
Romania’s current foreign trade policy aims at the country’s integration into Western markets. Romania is currently an associate member of the European Union and is working toward full membership in the next round of expansion. However, EU officials have warned Romanian leaders they are lagging behind other potential new members after experiencing several years of economic contraction.
Government
Romania is considered a republic with executive, legislative, and judicial branches. Romania consists of 40 counties and 1 special district, the city of Bucharest.
The communist Party became Romania’s ruling political party in the 1940’s. It exerted its power over the country’s entire governmental structure. Only a small percentage of Romania’s people belonged to the Communist Party. However, Communist leaders held important positions at all levels of government and in major non-governmental organizations. The general secretary, who headed the Communist Party, had the authority of a dictator. Romania’s Constitution guaranteed such rights as freedom of speech, freedom of the press, and freedom of religion. However, the Communists interpreted this to mean they could limit these rights in order to maintain power.
In December 1989, Romanians revolted and overthrew the Communist government. Free multi-party elections to select a president and members of a national legislature were held in mid-1990. Romania adopted a new Constitution in late 1991. The constitution provides for multiple political parties, a separation of powers between branches of government, a market economy, and respect for human rights.
Romania’s top government official is the president, who is elected by the people. The president represents the country in matters of foreign affairs and is the commander of the armed forces. The president appoints a Prime Minister, who selects a Cabinet to help carry out the operations of government.
Romania has a bicameral parliament called the National Assembly. The people elect a 486-member, two-house legislature. It consists of the 143-member Senate and the 343-member Chamber of Deputies. Members of both houses of parliament are elected for four-year terms.
Romania has about 50 political parties. The largest of these parties is the Democratic Convention of Romania. The country’s other political parties include the Social Democratic Party of Romania, the Social Democratic Union, and the Hungarian Party of Romanian National Unity.
Romania seems to be fairly stable. They are trying to gain membership to the European Union, which would help them economically as well as politically. Therefore, they are trying to remain pretty steady politically. With some caution, investing in Romania would be considered all right.
People
Ethnic Romanians, who constitute about 89 percent of the population, are descendants of the inhabitants of Dacia, an ancient land roughly equivalent to modern Transylvania and Walachia. Dacia was conquered by the Romans and incorporated into the Roman Empire in the early 2nd century. The largest minority group is the Hungarian population, which constitutes about 8 percent of the population, and is settled mainly in Transylvania.
Romania’s official language is Romanian; a Romance language derived mainly from Latin. English and French are taught in many schools and are the most common second languages spoken in Romania. The principal religion of Romania is Christianity. About 70 percent of the population belong to the Romanian Orthodox Church, the largest religious organization in the country.
The political and economic changes that have taken place in Romania since the 1980s have made daily life difficult for many ordinary citizens. Food prices are high relative to the country’s low minimum wage, and few Romanians can afford luxuries. One-family houses are common in Romania’s villages, while most city dwellers live in one-family apartments.
Diet
Romanian food tends to consist of the same items regularly: grilled pork, pork liver, grilled chicken, trip soup, and greasy potatoes. The main dish in many Romanian households is also Romania’s most novel dish. It is called mamagliga, a hard or soft cornmeal mush, which is boiled, baked or fried. The other mainstay of the Romanian diet is ciorba (soup).
Another popular Romanian food is mititei, or seasoned grilled meatballs. Cozonac is also a Romanian specialty. Although traditionally it was only served on Christmas and Easter, in present-day Romania, families sometimes eat it as a breakfast bread, similar to a muffin.
Typical desserts of Romanian cuisine includes include placinta (turnovers), clarite (crepes), and saraille (almond cake soaked in syrup). Romanian wines are cheap and good. Tuica is a plum brandy common at Romanian tables, and palinca is similar but it is distilled three times as much as tuica. Both liquors are taken at the beginning of a meal.
Ukraine
Geography
Ukraine is a country in Eastern Europe. Ukraine is bordered on the west by Poland, Slovakia, and Hungary; on the southwest by Romania and Moldova; on the south by the Black Sea and Sea of Azoz; on the east and northeast by Russia; and on the north by Belarus. The total area of Ukraine is 233,090 square miles, which is nearly the size of Texas.
Most of the Ukraine is a rolling upland plain with the highest elevation in the western half of the country and the southeastern region. A lowland region of wooded bogs and swamps is located in the northern Ukraine, but much of this area has been drained and cleared for agriculture. Low-lying plains are found in southern Ukraine and the Black Sea coastal region. The Carpathian Mountains are in the extreme west and the Crimean Mountains are located in the southern end of Crimea. Together, they take up five percent of the Ukraine’s territory.
Much of the Ukraine has four distinct seasons and a moderate, continental climate. Winters are quite cold, and summers are fairly warm. The Crimean coast has a Mediterranean climate with mild, wet winters and hot, dry summers. Air masses from Central Asia cause eastern Ukraine to have warmer summers and colder winters. Precipitation in Ukraine averages 20 inches, but this varies dramatically by region. Levels are highest in the mountains and lowest on the Black Sea coast. For the majority of the country, rainfall tends to be frequent in the summer months. Consequently, Ukraine’s climate is favorable for agriculture and tourism.
Ukraine has an abundance of conveniently located natural resources. Nearly half of the country is covered by chernozem, a soil ideal for agriculture. Forests also cover 13 percent of Ukraine’s territory. Among its other natural resources are coal, iron ore, manganese, oil, and natural gas.
Economy
The Gross Domestic Product of Ukraine is $42.3 billion, but GDP has been experiencing a negative annual growth over the past couple of years. Agriculture, including forestry, provides about 13% of GDP; industry accounts for 34%; services account for 37%, and various miscellaneous sectors make up the remaining 16%. Ukraine’s currency is called hryvnia. The current exchange rate per $1 is UAH5.59.
Important trading partners for Ukraine are Russia, the EU, and the U.S. Exports provide Ukraine with $11.3 billion and include ferrous and non-ferrous metals, chemicals, machinery, and transportation equipment. Imports cost the country $13.1 billion. Ukraine imports energy, especially natural gas, machinery, transportation equipment, chemicals, plastics, and rubber.
After Russia, the Ukrainian republic was the most important economic component of the former Soviet Union, producing about four times the output of the next-ranking republic. Its fertile black soil generated more than one-fourth of Soviet agricultural output. In addition, its diversified heavy industry supplied equipment and raw materials to industrial and mining sites in other regions of the USSR.
After the implosion of the USSR, the Ukrainian government liberalized most prices and erected a legal framework for privatization, but widespread resistance to reform within the government and the legislature soon stalled reform efforts and led to backtracking. Output in 1992-99 fell to less than 40% of the 1991 level. Loose monetary policies pushed inflation to hyperinflationary levels in 1993.
President Kuchma has pushed economic reforms, maintained financial discipline, and tried to remove almost all of the remaining controls over prices and foreign trade. The onset of the financial crisis in Russia dashed Ukraine’s hopes for its first year of economic growth in 1998 due to a sharp fall in export revenue and reduced domestic demand.
Despite increasing pressure from the IMF to accelerate reform, substantial economic restructuring remains unlikely because of the resistance from a communist-dominated legislature to further privatization. However, recent reports indicate that Ukraine’s economy is headed toward improvement. In the first half of 2000, the economy grew 5% due to brisk domestic demand and industrial increase. This growth is threatened by Ukraine’s tendency to let current interests prevail over strategic decisions.
Government
Although the collapse of the Soviet Union in 1991 brought Ukraine independence, the rigidly centralized Soviet structure of government remained. The first five years were a tumultuous time of trying to establish democratic institutions and traditions. Ukraine’s first direct presidential election was held in 1991. Ukraine was the last of the former Soviet republics to adopt a new constitution. The delay was caused by a struggle in the legislature between reformers, who wanted to introduce a new, democratic system of government, and conservatives, who wanted to preserve the structures of the former Soviet State. The reformers finally won in June 1996 when the legislature adopted a new constitution stipulating a democratic form of government.
Under the new constitution, the president is the head of state. The president is elected by direct, majority vote for a term of five years and may serve no more than two consecutive terms. The president appoints the Prime Minister and, under the advice of the Prime Minister, appoints the Cabinet of Ministers, which are subject to the approval of the legislature. The Prime Minister is the head of government
The legislature is known as the Verkhovna Rada, or Supreme Council. It consists of a single chamber of 450 deputies elected for four-year terms. The inability of some candidates to win absolute majorities in their constituencies has left a number of these seats unfilled. The legislature has the right to change the constitution, pass laws, confirm the budget, and impeach the president.
Although Ukraine is a unitary state, its constitution allows for a considerable degree of decentralization. The country is divided into 24 districts and one autonomous republic, Crimea. The cities of Kyiv and Sevastopol have special status, which operate independently of district authority, are responsible only to the central government.
In the late 1980’s, when the Communist Party began to lose influence, the first non-Communist political groups appeared. However, the Communist Party was Ukraine’s only legal party until its constitutional monopoly was abolished in 1990. Now, Ukraine’s party system is poorly developed and political parties lack local organization and grassroots support. The electoral system allows workers’ collectives to nominate candidates for the legislature, weakening the role of parties in the electoral process.
Given the turmoil caused by President Kuchma’s perceived involvement in the murder of a foreign journalist, the political arena of Ukraine can be described as unstable. The riots and protests of the people are of great concern; therefore, great caution should be taken when considering investment in Ukraine until the future of the country is more stable.
People
Ukraine has long been a crossroads between Europe, Arabia, and the Orient. The modern Ukrainians have acquired a strong mixture of Asiatic and Arabic blood: giving them an average height, slender build, and fair complexion. Ethnic Ukrainians comprise 73 percent of the population of Ukraine. Russians are the largest minority group at 22 percent. Other numerically significant groups are Jews, Belarusians, Bulgarians, Poles, Hungarians, and Romanians. Ethnic clashes are rare, although some tension exists between Crimean Tatars and ethnic Russians.
The official language of the country is Ukrainian, which forms with Russian and Belarusian, the eastern branch of the Slavic language subfamily of Indo-European languages. Russian is still most widely used, especially in the cities. As a rule of thumb, one can manage by speaking Russian, although some resistance may given by public officials who are being pressed to use Ukrainian. Literacy is almost universal in Ukraine.
The transition from the Soviet period has brought serious new problems. Much of the old elite has weathered the transition well. Many Soviet-era managers and factory directors retained their positions and profited from privatization. However, a thin stratum of new rich has begun to appear.
For the majority of the population, the transition has meant a catastrophic decline in living standards. An estimated 45 percent of the population lives below the poverty line. Unemployment is growing, and health care is deteriorating. Crime and corruption are rampant, with much economic activity controlled by "Mafia" clans.
Diet
The Ukrainian diet depends heavily on rye bread, potatoes, and borsch (beef soup). Pork and pork products, especially sausage and salo (a type of smoked bacon), are favored meats. Poultry is also eaten with consistency. Alcohol consumption, especially of the potent horilka, a wheat-based whiskey, is high, and smoking is widespread.
Ukrainian cooks use many seasonings including black pepper, red pepper, salt, bay leaf, parsley, dill, garlic, and onion. Ukrainians also love sour cream. Mushrooms are collected to use in cooking. Staple foods include potatoes, cabbage, fish, pork, beef, and sausage. Ukrainian people eat many dishes made with potatoes. Fruits and juices are also very common.
Ukrainians have some oddities in their eating habits different from the United States. These include shopping for food in open markets, where they can sample the foods they buy. Sanitation in these markets would probably not meet American standards. In some places, horses are raised to produce milk. In addition, meals at home can take up to five hours with several course meals. Small sandwiches, which start things off, consist of one slice of bread and any one of various toppings.
During the Soviet era, there were chronic shortages of food. As Ukraine is an agricultural country, there is a lot of meat in the market as well as cheese, butter, bread, and milk. However, for some items, notably cheese, prices are still very high. In addition, restaurants are not common because they are too expensive.
Lithuania
Geography
Lithuania is a country in northeastern Europe, bounded on the north by Latvia; on the east and south by Belarus; on the southwest by Poland; and on the west by the Baltic Sea. Lithuania has an area of about 25,175 square miles, which is similar to the area of West Virginia. Vilnius, the capital, is located in the southeast portion of the country.
Lithuania consists of a low-lying plain broken by low hills in the west and south. Most of the country is less than 655 feet in elevation. Marshes and swamps are prevalent, especially in the north and west, although half of these have been drained. Lithuania also has many lakes and rivers; the most extensive, the Neman, supplies the country with hydroelectric power.
The climate in the western part of the country is dominated by marine influences, but conditions are more variable in the east. In the west summers are cooler, and winters are milder. Average annual precipitation ranges from less than 20 inches in the middle of the country to more than 35 inches in the west.
Forests occupy about one-quarter of Lithuania and support various kinds of wildlife, including deer, wolves, foxes, and wild boar. Minor oil and gas deposits have been found near the coast.
Economy
The GDP of Lithuania is $5.6 billion. The country exports $3 billion including minerals/energy, machinery, electronics, chemicals, and textiles. Imports cost Lithuania $3.9 billion and consist mainly of energy. Lithuania’s major trading partner is Russia. Lithuania has a currency known as litas. As of 07 February 2001, the exchange rate per $1 was LTL4.0008.
As a Soviet Republic, Lithuania primarily produced manufactured goods such as electronics and light machinery. In the early 1990’s after the breakup of the USSR, it maintained its monopolistic position as a supplier of these goods in the former Soviet bloc because of lack of competition. This made it difficult to liberalize its economy expediently.
According to the IMF, in the early years following independence, Lithuania’s output significantly contracted as a result of the deficiencies in the socialist system along with major adjustments in relative prices for traded goods. The economy did not improve much before Lithuania was subjected to an economic crisis in 1998 due to its close ties to the faltering Russian economy.
With the goal of achieving membership in the EU and finally defeating the economic problems of transition, the Lithuanian government has developed strategies to overcome its economic problems. The centerpiece of the economic policy strategy will be to maintain the currency board arrangement in its present form, supported by a reduction in the general government budget deficit, and a strengthening of budgetary management. A range of structural reforms will also be implemented, designed to enhance domestic resource mobilization, increase productivity, and safeguard external competitiveness. These actions are expected to boost the economy.
Government
The Government of Lithuania is a parliamentary democracy. Branches of Estonia’s government include Executive-President, Prime Minister, Legislative Seimas, and the Judicial Supreme Court.
Lithuania gained its independence from the Soviet Union in 1991 and adopted a new constitution the following year. According to the new constitution, which was ratified in October 1992, the president is the head of state of Lithuania. The president is directly elected to a five-year term. The Prime Minister acts as the head of government.
The highest legislative authority is the Seimas, or parliament, a unicameral body composed of 141 members elected to four-year terms. Seventy-one seats in the Seimas are determined by direct popular vote, while the remaining seats are allocated on a proportional basis to each party that receives 5 percent or more of the total vote. Parties representing ethnic minorities, such as the Union of Poles, are exempt from the minimum vote requirement. The president appoints the Prime Minister, subject to approval by the Seimas.
Lithuania is made up of 44 rural districts; eleven of which are cities. The government budget is $1.1 billion, in which some goes to these purposes. 20% for education, 9% for public safety and order, 8% social services, and 3% for defense.
Lithuania should be considered a stable country because of its independence from the Soviet Union nearly ten years ago. It has been working hard to establish itself as an independent country and is working toward shedding the last of the Communist legacy of centralization. In its attempts to be accepted in European society, Lithuania has had to undergo severe changes. In the next several years, Lithuania will complete its transition to a market economy, and little political adjustment will be necessary to do this.
People
The population of Lithuania is 344,500 with 90 percent living in urban areas. Lithuanians constitute more than 80 percent of the country’s population, meaning they come from the original Balt tribes. They are neither Slavic nor Germanic, although the union with Poland and Germanic colonization and settlement left cultural and religious influences. The proportion of Lithuanians increased after the dissolution of the USSR as Lithuanians immigrated from other parts of the USSR and minorities left in large numbers. Other major ethnic groups include the Russians and Poles.
The majority of Lithuanian religious believers are Roman Catholics. There are also large numbers of Russian Orthodox, Evangelical Lutherans and Baptists, as well as adherents of Islam and Judaism. The followers of all religious denominations are held equal before the law. All schools offer religious studies as an optional subject. Literacy is high with nearly 98 percent of the people over 15 being literate. A strong emphasis is placed on education, which is free and compulsory until age 16.
Lithuanians speak a Baltic language related to Latvian. Lithuanian still retains the original sound system and morphological peculiarities of the prototypal Indo-European tongue. Written with the Latin alphabet, Lithuanian has been the official language since 1989. The Soviets had forced the official use of Russian; so most Lithuanians speak Russian as a second language while the resident Slavic populace generally speaks Russian as a first language.
Diet
Lithuania has turned basic foods into special treats. Potato dishes such kugelis, a potato pudding, or cepelinai, a meat or cheese-fill potato dumpling, are tasty favorites. Wild mushrooms are gathered in autumn, pickled, dried or canned, then used in various recipes during the winter months.
Lithuanian cuisine is divided into first and second dishes. Among the first dishes are grybu salotos su grietine, which is a mushroom salad with sour cream and ausytes su grybais, which are little mushroom ears. This course is followed by a second dish which may include saltibarsciai, cold soup; leistinuku sriuba; dough-pieces soup; kastinis, a dish made from butter and sour cream; kugelis, baked potato pudding; Dzukiska bulvine banda, Dzukian potato pie; and vedarai, groat sausage.
Lithuania has a variety of other foods to offer. Other meat products include Lithuanian sausage and skilandis. Zeppelin is a fried dish consisting of potatoes boiled, smashed, stuffed with meat, and then fried. Favorite drinks in Lithuania are Aguonu pienas, which is Poppy "milk" and Spanguoliu kisielius, which is cranberry pudding. There are also many sweets including sweet cherry soup, blueberry dumplings, honey mushrooms, and Poppyseed coffee cake.
Estonia
Geography
Estonia is a country in northeastern Europe, bounded on the north by the Gulf of Finland, on the east by Russia, on the south by Latvia, and on the west by the Baltic Sea. The area of the country is about 17,400 square miles, which is about half the size of Colorado. Tallinn, the capital and largest city, is the country’s chief port.
Estonia is a low-lying plain with numerous streams and lakes. Glaciation formed elongated hills as well as glacial boulders in the south. The mainland has a coastline about 720 miles long. The average elevation is about 165 feet with the highest point reaching only 1043 feet. Wetlands cover about 20 percent of the country. Lakes and reservoirs cover an additional 5 percent. The climate is moderated by marine influences, but continental conditions exist in inland portions of the country. Precipitation is moderate, with average annual rainfall between 20 and 27 inches.
About one-quarter of Estonia is forested with pine, birch, aspen, and fir. Elk, deer, and wild boar are common wildlife. Several species are protected by legislation including beaver, red deer, and willow grouse.
Economy
Estonia has a Gross Domestic Product of $3.7 billion. Estonia experienced its worst year economically in 1999 since gaining independence, but the country has experienced growth since then. Agriculture compromises 10% of GDP, while manufacturing, mining, and energy industries account for 45% of GDP.
Major trading partners for Estonia include Finland, Russia, Sweden and Germany. Exports provide the country with $1.6 billion and consist mainly of textiles, machinery, and food products. Imports cost the country $2.2 billion and are primarily machinery, minerals, vehicles, and textiles. Estonia’s currency is the kroon and can be exchanged at the rate of EEK16.772 per $1.
As part of the interrelated Soviet economy, Estonia was basically an industrial region, with agriculture also making a small contribution. Industry and agriculture remain important components of the economy of independent Estonia, but their portion of GDP and the labor force are declining while those of commerce and the service industry are growing.
Although the restoration of Estonia’s independence in 1991 brought with it several changes in the institutional framework of the economy, Estonia still remained in the trouble zone. A major price increase took place in 1992 because the prices of raw materials were increased in Russia at the beginning of the year. This led to monetary reform and the introduction of its own currency, the kroon. This monetary reform was a turning point for Estonia’s economic reform.
It has been characteristic of Estonian economic reforms that no branch of the economy is preferred; the only determining factor in the restructuring has been the ability of an enterprise to adapt itself to economic conditions, especially its ability to adapt itself to the Western market. The sharply changing proportion of prices and the rapid contraction of the eastern market have caused this situation.
Although the GDP declined slightly in 1999, growth returned in 2000. Due to significant changes in foreign trade and economic relationships from east to west during the 1990’s, the effect of the financial crisis in Russia was relatively moderate in Estonia. Improvement in the external environment offers a good opportunity to launch a vigorous growth stage in the economy. Regardless of the optimistic expectations, the development will need to be more balanced than previous development as the post-shock recession period forces economic agents to be more rational and to assess the prospects more realistically. With this in mind, Estonia expects to complete its preparations for EU membership by the end of 2002.
Government
The government of Estonia is a parliamentary democracy. The branches of this government are the Executive-President, Prime Minister, Legislative Riigikogu, and the Judicial Supreme Court.
The present republic of Estonia is a legal successor to the independent republic of the same name that existed from 1918 to 1940. A new constitution, approved by referendum in 1992, allows for a unicameral national legislative body, the Riigikogu.
The Executive-President acts as a Chief of State and is elected by the Parliament every five years. As the head of state, the president is granted limited executive authority. The Prime Minister acts as the head of government. The Legislative-Riigikogu is the parliament. The 101 members of the Riigikogu are elected by direct popular vote to four-year terms.
Estonia has fifteen counties and six independent towns and several different political parties. The government budget is $1 billion and defense utilizes 1.2% of the GDP.
Estonia has had severe economic problems in the last couple of years, which has led to social unrest. The future of the political aspect of Estonia is not very clear. There is a great deal of potential in this country, but it is yet to be determined if a political leader will be able to guide the country to improvement and success.
People
Estonia’s population is 1.49 million. About 62 percent of Estonia’s population are ethnic Estonians. They are ethnically and linguistically close to the Finns and Hungarians, speaking a Finno-Ugric language. Russians are the largest minority with 30 percent of the total population. Other minorities include Ukrainians, Belarusians, Finns, Jews, and Latvians. The ethnic composition of the population has changed significantly since the end of the Second World War, when many people from the USSR moved to Estonia.
Estonians look like and consider themselves Nordics, evidenced through the strong cultural and religious influences gained over centuries during Germanic and Scandinavian colonization and settlement. This highly literate society places strong emphasis upon education, which is free and compulsory until age 16.
Written with the Latin alphabet, the official language of the country is Estonian. One-third of the standard vocabulary is derived from adding suffixes to root words. The Soviet era imposed the official use of Russian; so most Estonians speak Russian as a second language while the resident Slavic populace speaks Russian as a first language.
Diet
Estonia has a long seacoast and a long history of fishing to go along with it. Seafood soups, stew, casseroles, and stuffed breads are common in Estonian cuisine. In addition, honey, produced all over the country, is spread on farmer cheese or sweet bread as well as drunk with tea.
Traditional Estonian cuisine is famous for its smoked fish, blood sausages, and blood pancakes. Hors d’oeuvres are very good and often the best part of the meal. Local specialties include sü it, jellied veal; täidetud vasikarind, roast stuffed shoulder of veal; and rosolje, vanaigrette with herring and beets. Braised goose stuffed with apples and plums is also a specialty.
The sweet Vana Tallinn is Estonia’s original liquor. Saku is another beer with an excellent reputation. Blue-labeled Saku Original is widely consumed, but some people prefer the darker Saku Tume.
Slovakia
Geography
Slovakia is a landlocked country in Eastern Europe. It is surrounded by Poland to the north, Hungary to the south, Austria and Czech Republic to the west, and the Ukraine to the east. Slovakia is roughly twice the size of New Hampshire and has approximately 5.4 million people.
The terrain to the north is very mountainous and is called the High Tatra. The country’s highest point is located here at 8,711 feet, Mount Gerlachovka. South of the High Tatra is where the mountain chain of the Low Tatra forms. Slovakia does have some lowlands to the south and southwest where the Danube River runs. Slovakia’s land is made up of 41 percent forests, 33 percent agriculture, 17 percent pastures, and 9 percent other.
Slovakia has a temperate climate with warm summers and cold, dry winters. The mountain region receives around 39 inches of precipitation, while the rest of the country receives around 24 inches of water every year. In the south, the temperature ranges from 20 to 30 degrees Fahrenheit in January to 60 to 70 degrees Fahrenheit in July. The High Tatra is much colder. Its temperature ranges from –10 to 30 degrees Fahrenheit in January and 50 to 60 degrees Fahrenheit in July.
Economy
The economy of Slovakia has been improving since 1993. The gross domestic product grew 4.3% by 1994 and continues that upward trend. The main reason for this change is for the return of state-controlled enterprises to private ownership. By 1999, the gross domestic product was $24 billion.
The reintroduction of an economy based on free enterprise has been a difficult process in Slovakia. Because much of the country’s industrialization took place during the Communist era, many Slovakian industries were inefficient and produced goods that were not competitive in the world market. To modernize these industries and re-train workers has required foreign investment, which has been slow due to perceived political instability in the country.
Slovakia has had some unemployment problems in the past but that has been improving. The unemployment rate is now at 11%, which is their lowest figure ever. The service sector makes up 53% of the labor, 39% goes to industry, and 8% of the people are farmers. A great percentage of the workers belong to unions because of the higher wages and better benefits.
Cultivated fields make up 31% of the land. The main crops are wheat, barley, corn, sugar beets, and potatoes. Their primary livestock are pigs, cattle, sheep, and poultry.
In 1999, their exports totaled $13 billion while their imports cost the country $14 billion. Exports included machinery, chemicals, fuels, steel, and weapons. Their main trading partners are the Czech Republic, Germany, Austria, Hungary, Italy, Russia, Poland, Ukraine, and the United States. The currency is called the Slovak koruny (SKK). As of 07 February 2001, the current exchange rate in Slovakia per $1 was SKK47.
Government
Czechoslovakia was under communist control from 1948 to November of 1989. In June of 1990 the country’s first multiparty elections were held. Czech and Slovak leaders began to disagree soon after the elections. In the elections of 1992, the leftist government came to power in Slovakia and the center-right group took over in the Czech Republic. The leaders of the two parties decided that it would be in everyone’s best interest to split Czechoslovakia into the Czech Republic and Slovakia. Slovakia adopted a new constitution on September 1, 1992 and it went into effect in January of 1993.
Slovakia’s government declares itself a parliamentary democracy. Slovakia has both a president and Prime Minister. The current president of Slovakia is Rudolph Meciar. He was elected back in May 1999. Up until January 1, 1999 the president was elected by the parliament. Parliament amended the constitution to provide for a direct election of the president by the people to serve a five-year term. The president is in charge of appointing the Prime Minister, who is usually the leader of the majority in the house. The Prime Minister then advises the president on his cabinet appointees. The current Prime Minister is Mikulas Dzurinda.
Slovakia has a single-chamber parliament called the Slovak National Council. The parliament is made up of 150 members, who are elected by the people. The parliament is elected to four-year terms by popular vote. Anyone over the age of 18 is allowed to vote.
Slovakia’s highest court is the Constitutional Court. The court is composed of 10 judges, which are appointed to seven-year terms by the president, from a list of names proposed by the parliament. The judges of the lower courts are appointed by the Prime Minister or by the minister of justice.
Slovakia is divided for administrative purposes into 8 regions and 79 districts. The regions are directly subordinate to the federal government, and regional officials are nominated by the federal parliament. Administrative districts are directly subordinate to the regions, and their officials are elected by the people.
Investment in Slovakia is not advised. The government is just recently changing to election of the president in a democratic manner. The country has not had experience in this department, and it is yet to be seen if this form of election will work for them.
People
Slovakia’s population is 5.4 million with 285 people per square mile. Of the 5.4 million people, 60% of them live in urban areas. The Slovaks are descendents of the Slovak people who settled near the Danube between 400 and 500 A.D. The Slovaks comprise the greatest portion of the inhabitants at 86%. The largest minority group in the country is the Hungarians at 11% followed by the Roma at 2%.
The official language of Slovakia is Slovak. Hungarian is also a popular language. In 1994 a law was passed, where Hungarian was the official language in areas of Slovakia where more than 20% of the population spoke it. In 1995 that law was quickly retracted. Other languages spoken in Slovakia are Ukrainian, Romani, and Czech.
Religion plays a major role in the lives of Slovaks. About 60% of the people attend Roman Catholic Church. The other churches that are popular are Protestant, Slovak Evangelical, Reformed Christian, and the Orthodox Church.
Slovakia is a well-educated country compared to some of its neighbors. The estimated adult literacy is at 99%. Children start school at the age of 6 and must go until they are 18. After they graduate they do have an opportunity to attend one of the Slovakia’s 13 universities if they are wealthy enough.
Diet
Slovakians rely heavily on pork. Pork is served in almost every meal. One of the favorite dishes for Slovakians are dumplings and sheep cheese. Another favorite is a Hungarian dish that is called goulash. Wine, beer, plum brandy, and borovicka (an herb-flavored drink) are very popular drinks.
The best-known Slovak soup is kapustnica, a hearty cabbage soup with smoked pork sausage that contains mushrooms. Another typical Slovak soup is fazuova polievka, which is made of beans and root vegetables. Cesnakova polievka is a garlic soup cooked in chicken broth with parsley and egg. A typical Slovak appetizer, known as lunkova rolka chrenovou penou, is a slice of ham stuffed with horseradish-flavored cream. Bryndza cheese is another famous appetizer done in pastry dough and flavored with paprika.
Slovakia does have a great number of restaurants, wine cellars, cafes, beer parlors, and small snack bars offering a wide variety of international as well as Slovakian dishes. Most restaurants have menus in only the Slovakian language but a few do have it in foreign languages. All restaurants are graded towards quality. The main meal of the day is usually lunch, comprising of soup, wine, a main dish, and dessert.
Hungary
Geography
Hungary is a landlocked country. Slovakia is to the north, Austria and Slovenia to the west, Croatia and Serbia to the south, and Romania and the Ukraine to the east. It is slightly smaller than Indiana with a population of 10.1 million people.
The terrain is mainly flat with some rolling plains. There are some hills and low mountains by the Slovakian border. Arable land makes up the largest land area at 51 percent, followed by forests and woodlands at 19 percent, 13 percent belongs to pastures, 12 percent to other, and 6 percent to permanent crops. Hungary’s two major rivers are the Danube and Tisza, which serve as major shipping routes for trade.
Hungary has a temperate climate with cold winters and hot summers. Since the country is relatively flat, the temperature is fairly constant across it. In the winter the average temperature is 29 degrees Fahrenheit and 70 degrees Fahrenheit during the summer. Hungary receives around 24 inches of precipitation during the year.
Economy
Hungary is a moderately developed country of industrial-agrarian character. In international terms it has a relatively limited economic potential, with a high external vulnerability. At the beginning of the 20th century, the level of development of the Hungarian economy resembled that of Austria, Finland, Italy, and Spain.
In 1999 the per capita income was about $5,000, illustrating that during the 20th century Hungary fell from the group of developed countries. Based on its gross domestic product of $52 billion, Hungary is ranked as a relatively small unit in the world economy, greatly dependent on international developments as well as on external development conditions.
Since non-Communists came into power in 1990, the country has undertaken free-market reforms. By 1993, the private sector accounted for 50% of the gross domestic product. The unemployment rate reached its highest peak in 1993 at 13% and now stands at 8.5%. Service industries make up 59% of the labor force, 33% are located in industries, and 8% in farming, forestry, and fishing. Hungary’s largest union is called the National Confederation of Hungarian Trade Unions, with over 1 million current members.
Hungary’s farms have been increasing in size since the fall of communism in the early 1990’s. Hungary’s leading agricultural products are corn, wheat, sugar beets, barley, potatoes, sunflower seeds, and grapes. The main livestock are cattle, pigs, sheep, horses, and poultry, which produce milk, meat, butter, eggs, and wool.
In 1999, their exports totaled $22 billion while their imports cost the country $24 billion. Hungary’s chief exports are machinery, transport equipment, consumer goods, agricultural products, chemicals apparel, textiles, iron, and wine. The main trading partners are Germany, Italy, Austria, Russia, and the United States. The currency is called the forent. As of 07 February 2001, the current exchange rate in Hungary per $1 was HUF282.
Government
Hungary is a multiparty, parliamentary democracy in which the power is reserved for the people and exercised through their elected officials. Hungary has both a president and a Prime Minister. The current president is Arpad Goncz. Presidents can be elected to a maximum of two five-year terms. Viktor Orban is the current Prime Minister. The political party with the most seats in the house appoints the Prime Minister.
Hungary was under communist control from 1948 to 1989. In the late 1980’s, public opposition forced the country to accept the formation of political parties. In 1989 the Communist party renamed itself the Hungarian Socialist Party (HSP), and soon after the Hungarian parliament revised the 1949 constitution to make it a multiparty, parliamentary democracy. Another powerful political party is the Fidesz-Hungarian Civic Party. In 1998, it surpassed the Hungarian Socialist Party as the most popular and influential party.
Hungary has a one-house parliament called the National Assembly. The National Assembly consists of 386 deputies. Of those 386 deputies, 176 are elected directly from local districts, 120 are elected from county and metropolitan lists, and the final 90 are elected from national lists drawn up by competing parties.
Hungary’s highest court is the Supreme Court, which functions mainly as a court of appeals. The National Assembly elects the president of the Supreme Court. All judicial positions are by elections and they serve indefinitely. Judges are not allowed to join political parties or engage in political activities.
During the Communist period, each unit of local government was governed by a people’s council, which administered economic, social, and cultural activities. These councils were organized hierarchically according to the size of the region, and the national ministries supervised all local organs. In 1990 the National Assembly ratified a law providing for the participation of citizens in the governing of their communities. Local affairs are now administered by multi-party, self-governing bodies.
Hungary is divided for administrative purposes into 19 counties plus the capital city of Budapest, which has county status. Counties are subdivided into districts. In rural areas, villages have their own representative bodies. All levels of local government are regarded as equal and independent.
Although Hungary’s government is fairly young and the economy has had a few rough spots, Hungary seems to be pulling it together. Caution should be used when investing in this country, but no significant problems are foreseeable.
People
Hungary has an estimated population of 10.5 million and 283 people per square mile. Of the 10.5 million people, 60% of them live in cities but most still have some part in farming. Hungarians make up the largest part of the population at 98%. The minorities are German, Romanian, Slovakian, and Slovenian.
The official language of Hungary is Hungarian, also called Magyar. Hungary does have many other languages such as Turkish, Slovakian, German, Latin, and French. Most Hungarians are able to speak multiple languages. German is the most popular foreign language.
Hungary has two main religions. The first and most popular is Roman Catholic. About two-thirds of the population is Roman Catholic. The second major religion is Protestant. Protestant’s make up one-fourth of the population. Other churches are the Orthodox and Unitarian.
Hungary is a very well educated country. The literacy rate is currently at 99%. School is mandatory from the ages of 6 to 16. Primary education is free and the government pays the majority of the secondary and higher education. There are over 77 institutions for higher learning including 10 universities and 9 technical schools.
Diet
Food in Hungary is one of the biggest attractions for travelers. In Budapest alone there are over 1,000 restaurants. The international cuisine has been growing fast in the past ten years. Some of the different kinds of restaurants that are opening up are French, Chinese, Russian, American, Italian, and Indian.
The characteristics of Hungarian cuisine are large dishes flavored with red paprika, onion, tomatoes, green paprika, and sour cream. Among some of the typical dishes are goulash, chicken paprika, dumpling soup, gulyas, or beef soup, stuffed cabbage, and fish soup. Other dishes include jokai bableves, or bean soup; hideg gyumolcsleves, a cold fruit soup made from sour cherry; or palacsinta, which are stuffed crepes. For dessert they usually have sponge cake or Vergabeles, a baked pudding.
Wine is always served at the main meal. The most famous Hungarian wine is called Tokaji. This wine is considered "The king of wines, the wine of kings". Beers, cherry brandy, and plum brandy are also house favorites.
Poland
Geography
Poland is a country in eastern Europe bordered on the north by the Baltic Sea and Russia; on the east by Lithuania, Belarus, and Ukraine; on the south by the Czech Republic and Slovakia; and on the west by Germany. Its capital and largest city is Warsaw. Poland is about the size of New Mexico with a land area of 120,725 square miles.
Poland appears to be an unbroken plain, but the country is actually very diverse. The average elevation is about 575 feet with a range from 8199 feet in the High Tatry Mountains to as low as 6 feet below sea level in the Wisla Delta. The northern portion of the country is a region of plains and low hills. The southern one-third of Poland consists of upland areas and intervening lowlands. A narrow belt of mountains occupies the extreme south and southwest with the Carpathian Mountains forming Poland’s southeast border.
Both moderate features and the more severe climate of Eastern Europe influence Poland’s climate. The climate of the western part of the country is marine west coast, and the eastern section is humid continental with cool summers. Weather conditions are highly variable. Annual precipitation in Poland averages about 24 inches, ranging from about 50 inches in the mountains to 20 inches in the lowlands. Summer precipitation is often double that of the winter.
Poland’s varied mineral deposits are concentrated in the southern upland regions. The most important of these is hard coal. Poland also has large deposits of lignite, sulfur, copper, zinc, lead, rock salt, potash, iron ore, and gypsum.
Economy
Poland has a Gross Domestic Product per capita of $6,800. The labor force consists of 17.4 million people; 44.1% industry, 29.9% agriculture, and 26% construction. The unemployment rate is 10%, inflation is 11%, and the Real Growth Rate is 5.6%. Poland’s currency is the zlotych, and as of 07 February 2001, the exchange rate per $1 was PLN4.042.
Poland’s major trade partners are Germany, Russia, Italy, Ukraine, Netherlands, France, and the U.S. The country exports $27.2 billion of manufactured goods, chemicals, machinery and equipment, mineral fuel, food and live animals. Poland also imports $38.5 billion worth of manufactured goods, chemicals, and machinery and equipment.
Before World War II, Poland’s economy depended largely on agriculture. The Communists adopted a Soviet-style planned economy in which heavy industry and engineering were emphasized. Private ownership was limited to agriculture, handicrafts, and certain services. During the first several decades of the Communist period, Poland’s economy grew. However, severe economic difficulties caused by a series of poor harvests, unrest among workers, shortages of goods, lagging technology, rising inflation, and massive foreign debt led to the collapse of the Communist regime in 1989.
The new government launched a reform program designed to transform Poland’s economy into one based on a free-market system. Price controls were lifted, while wage controls were imposed. The restructuring led to massive layoffs and a rapid rise in unemployment as well as economic contraction. After this initial decline, Poland’s economy began to improve. Although improvements have been slow, unemployment and inflation have decreased and movement towards privatization has begun. A new constitution adopted in 1997 commits the country to pursuing a market economy and further privatization.
Poland has a significant amount of technology that they try to keep on top of. There are over 161 Internet service providers, 1.58 million cellular phones, and over a 150 million broadcast stations.
In 1999, Poland became a part of NATO, along with Hungary and the Czech Republic. Poland is expected to become the next country in the European Union but is not expected to enter until the year 2005.
Government
Poland was re-established as a sovereign state after World War I. It was partitioned a fourth time in 1939 by Germany and the Union of Soviet Socialist Republics (USSR). After World War II, Polish territory suffered a substantial net loss, as the land ceded to the USSR in the east was nearly double that acquired from Germany in the west.
Communist Poland was governed under a constitution adopted in 1952 and subsequently amended. In December 1989 major constitutional revisions ended the monopoly of the Communist Party, established an upper chamber in the legislature, and reintroduced democratic rules and principles in Poland. In 1992 a transitional constitution known as the "Little Constitution" was adopted. However, this constitution established imprecise limits on the power of Poland's president, Prime Minister, and legislature, which led to some confrontation between those officeholders, particularly regarding foreign policy and defense.
A full revision of the constitution was initiated in November 1992. The final draft was completed in April 1997 and approved by voters in a nationwide referendum the following month. Among its numerous provisions, the new constitution clarifies the division of powers within the branches of government, while shifting some power away from the president.
The president is directly elected for a maximum of two five-year terms. As head of state, the president is the highest representative of the country in domestic and international affairs and the head of the armed forces. Under certain circumstances, the president also has the power to dissolve the legislature and call for new elections.
The Prime Minister of Poland serves as head of the government. The Prime Minister is appointed by the president with the approval of the Lower House of the legislature and is typically a leader of the majority party or coalition. The Prime Minister heads the Council of Ministers responsible for carrying out the decisions of the legislature.
The bicameral government has a 460-seat Lower House with a 100-seat upper chamber that has the power of veto over all legislation. The current president is Alexander Kwasniewski, and the Prime Minister is Jerzy Buzek.
Poland is administered locally through a system of 49 provinces. Each province is named after the town from which it is administered. The provinces are divided into about 2460 towns and communes and are administered by local governors and provincial assemblies. Both the provincial and community levels of government enjoy far greater autonomy than they did under the highly centralized Communist system.
With Poland well on its way to becoming the next member of the EU, they are doing their best to strive toward stability with their commitment in mind. No problems are foreseeable in the political arena. Investment in this country would be advised.
People
During most of its history, Poland was a multiethnic society that included substantial numbers of Belarusians, Ukrainians, Jews, and Germans. However, the territorial changes that resulted from World War II led to profound changes in the country's ethnic composition.
Poland now contains relatively little ethnic diversity. About 98 percent of the country's inhabitants are ethnic Poles, and the remainder is comprised mainly of Ukrainians, Belarusians, and Germans. Much of the Ukrainian population lives in northern Poland, while the Belarusian minority is concentrated in Bialystok Province adjoining the Belarusian border. Germans are concentrated mainly in the southern region of Silesia and, to a lesser extent, the northeastern region that was formerly East Prussia. Smaller communities of Slovaks, Czechs, Lithuanians, and Russians are also present.
At the time of the 1998 census Poland had a population of 37,897,641. The 2000 estimate was 38,644,184, yielding an average population density of 124 persons per sq km (320 per sq mi). Poland’s highest population densities are in the southern upland areas; the lowest densities are in the northwest and northeast. The country speaks Polish. Of the population over 15, over 99 percent can read and write. About 95 percent of the Poles are Roman Catholic, of which 75 percent are active.
Diet
Typical Polish foods include pierogi (stuffed dumpling); bigos (sauerkraut and meat); and fish. Hearty soups, including beet soup, potato soup, and cabbage soup are also popular, as are pork, mushrooms, bread, and dairy products. Sausage meats are also very common. Polish people also consume a great deal of rye bread and some fish. Beer, vodka, and currant juice are typical beverages. Fish usually consist principally of Alaska Pollock, herring, European sprat, squid, cod, and carp.
Poland likes to really feast on Easter and Christmas. For Christmas they will have 12 dishes representing every month of the years. Supper will not have any meat products in it. Supper usually lasts 4 to 6 hours with much socializing in between. Almost all meats and vegetables are bought on the open market.
Products for Export
Chocoholic Delight
This unique package will include a combination of chocolate vodka and chocolate truffles with alcohol to bring new meaning to the word chocoholic.
The chocolate vodka is a Ukrainian brand called Goldenbarr provided at www.goldenbarr.com. At this company the centuries old tradition of vodka distillation is legendary with Goldenbarr being one of the finest vodkas produced anywhere in the world. Hand crafted by expert distillers using ancient traditions and customs, it is the world’s first genuine Chocolate Vodka.
Goldenbarr distills its natural cocoa directly into the vodka. It is not flavored like a cordial. This quality distillation ensures a clean, clear quality that simply cannot be matched by any artificially flavored product. The result is a dry chocolate taste that blends masterfully with the superior vodka. Keeping tradition, the vodka is 80 proof.
The truffles come from Sabine Rothschild Chocolates of Europe at www.rothschild-chocolates.com/truffles.htm. Sabine’s truffles are made with the highest quality ingredients, which give them the most sensational and distinguished flavors. Each bite creates a wonderful harmony of Chocolate and Champagne. Once experienced, they are difficult to resist.
Each package will be assembled in Warsaw, Poland in baskets purchased from www.basketswholesale.com. This package can be purchased in three different sizes based on the size of the vodka bottle: 750 ml, 1 L, or 1.75 L. Each bottle is packaged with 20 pieces of assorted chocolate truffles. The combination of the package will cost UAH269, UAH286, or UAH342 depending on size purchased.
Fruit Fantasia
To make even the best fruit better, consumers can purchase their favorite fruit covered in chocolate. The fruit comes from Edroma, Ltd. at www.tdd.lt/edroma/apie_en.html. This company specializes in the production of sugared citrus fruit slices covered in chocolate. It has expanded its production capacities and at present is one of the sweet production leaders on the Lithuanian market.
Consumers can assemble their choice of plums, apricots, pears, apples, grapefruit, oranges, and pineapples in 200-gram increments. Edroma, Ltd. provides all items with quality in mind. The company produces its own chocolate icing for the fruit using only the highest quality local and imported raw materials.
After individual orders have been received they will be assembled and boxed in Warsaw, Poland. Depending slightly on the type of fruit, the cost per 200 grams ranges between 4.5 and 5.5 litas, which does not include the shipping price.
Eastern Europe Collection
A variety of liquors from the countries in Eastern Europe can be selected for inclusion in a custom-designed basket based on the consumer’s preferences. Prices will vary with the choice of alcohol.
Polmos Wisniowka Cherry Vodka PLN4.04 for 750mL bottle.
This deep cherry-red vodka smells very fruity and sweet. Traditionally, it is a dessert drink in Poland, because of its sweet taste. It will be an excellent choice for a celebration. 80 proof.
Tokaji Furmint 1994 HUF3031/bottle (750 mL)
This is the dominant variety of the Tokaj district, the oldest registered appellation in the world. The soft, mellow flavors of the grapes are faintly reminiscent of fine sherry. The crisp, fruity, and refreshingly dry finish make for an exquisite, satisfying drink with seafood or freshwater fish.
Tokaji Harslevelu 1994 HUF4653/bottle (750mL)
Dense and rich, this wine exhibits great finesse and complexity, and has a magnificent balance of alcohol, acidity, and sugars: the goal of every winemaker. Superb accompaniment to salmon or duck.
Goldenbarr UAH 94.75/bottle (750mL)
Goldenbarr is one of the finest vodkas produced anywhere in the world. Hand crafted by expert distillers using ancient tradition and customs, it is the world’s first genuine Chocolate Vodka. It has a dry chocolate taste that blends masterfully with the vodka.
All orders will be assembled in baskets in Warsaw, Poland. The baskets will be purchased from BasketsWholesale.com, which can be found at www.basketswholesale.com. The price of the basket is $5.00 and will be added to the price of the purchase. A 15% mark up will be applied to each order to cover costs, which does not include shipping.
Products for Import
In light of the current meat crisis and the fact that people in Eastern Europe do not have a huge per capita income available to them, imports to this area will need to focus on niche markets consisting of the elite and tourists. At this time, the Frontier Basket, the Deep Sea Basket, Central Europe’s combination basket, and Belize’s fruit baskets appear to be the most appropriate choices.
The Frontier Basket
This item will give customers the option to customize a basket with reindeer meet in combination with cheese, bread, and dram. These baskets will be picked up in Denmark and come from www.scandinaviadelicacies.com. Once picked up from this site, baskets can be shipped directly to fine hotels to be sold in their restaurants.
This basket is quite expensive and will PLN1583($392). In addition, shipping will be provided by UPS adding an additional PLN40 for shipment to the Warsaw distribution center. Thus, the final price will be PLN1623.
As reindeer is somewhat of a delicacy, this basket will be a special treat for the fine hotels available for tourists in Eastern Europe to target the rich and foreign tourists. Among the fine hotels this product will be marketed at are:
The Grand Hotel Tallinn: Toompuiestee 27, Tallinn, Estonia, tel. 6677-000, fax 6677-001
This centrally located hotel in Tallinn, Estonia is an extremely impressive reincarnation of the Tallinn Hotel that used to be there. It has an elegant interior and pleasant overall ambience. The hotel is just to the west of Toompea Hill making it close to the very heart of the old city.
Park Consul Hotel Schlossle: Puhavaimu 13/15, Tallinn, Estonia, tel. 6997-700, fax 6997-777
A breathtaking hotel in a fairy-tale atmosphere, 15th century building complex in the old city. The ancient, Hanseatic-world feel of this hotel is overwhelming: heavy wooden beams, stately drawing rooms, wrought-iron chandeliers, and stone fireplaces. Each of the rooms is unique with its own picture-perfect view.
Jan III Sobieski Hotel, 1 Artura Zawiszy Square, 02-025 Warsaw, Poland
Sobieski Hotel is situated in the center of Warsaw about 7.5 km form the airport and 500m from the Central Railway Station. Here guests will find rooms comfortably furnished and equipped. The restaurant is famous for its rich menu of Polish and international cuisine, excellent service, and friendly atmosphere. At guests’ disposal are well-equipped conference rooms and banquet halls for up to 200 people.
Sofitel Victoria Warsaw, 11 Krolewska Street, 00-065 Warsaw, Poland, tel. 6578-001, fax 9578-057
The Sofitel Victoria Warsaw is located in the center of the city close to many famous architectural monuments as well as next to the financial and commercial center of the capital. This is Warsaw’s premier hotel with 330 lavishly decorated rooms and 11 gracious suites, the equipment of which corresponds to the highest world standards. Banquet and meeting facilities are among the most elegant and best equipped giving meeting planners the flexibility they require.
Europa Hotel, Auoros Varto Street, LT-2001, Vilnius, Lithuania, tel. (370 2) 61 33 33
This nineteenth century hotel has an exceptional location in the very heart of the Old Town of Vilnius. It is an elegant hotel with the intimate and refined atmosphere of a private home. Having been recently renovated, the rooms are classically decorated with all modern amenities.
The Deep Sea Basket
Providing various fish products, this basket will be a hit in Eastern Europe. Due to contaminated waters in Eastern Europe much of the fish eaten must be imported due to health reasons. Since this is such an expensive basket, it will be marketed only to the major cities in our countries and only the finest hotels in these cities. It is only in these hotels that the guests will be of the caliber of client who will be buying this product. The types of hotels in this category were listed above
This product will also be shipped from Denmark via UPS into Warsaw, Poland, where our distribution center will be located for Eastern Europe. The cost of this basket will be PLN911 ($224) in order to have a 40% mark up and cover shipping costs. Each hotel being marketed to has agreed to take about 15 baskets every two weeks for their guests.
The Central European Combination Package
As wine is served before, during, and after nearly every meal in Eastern Europe, the wines available from Central Europe have great appeal. In addition, most Eastern Europeans have a sweet tooth that will greatly desire the desserts and candy. Moreover, the cheese, nuts, bread, and crackers all available at this site have the sensibility needed when considering the low incomes in this area.
The targeted area for these products will be gift shops in the hotels listed above. In doing so, people will be able to purchase these baskets as gifts for friends and relatives, for special occasions, or even as a tourist item.
Since each basket can be catered to fit the needs of the area, each gift store ordering the baskets will be able to emphasize products that sell well in their market. Prices will vary as will shipping; however, it will cost PLN474 ($117) to ship 140 lbs of product from Berlin, Germany to Warsaw, Poland via UPS. In addition, there will be a 25% mark up on each package sent out.
Belize Fruit Basket
Eastern Europeans enjoy fruit and especially juices, so they will be delighted at the availability of this product. With a combination of citrus fruits, juices, and jams consumers will be able to pick just the right one.
With the reasonable price of this item, it will be especially popular in Eastern Europe. The basket package would make a great gift and would do well in the gift shops of the hotels mentioned above to make a nice gift for various occasions.
These fruit baskets will be shipped via FedEx from Nassau, Bahamas to Warsaw, Poland, where they will be distributed to the hotels being marketed to. These baskets will cost PLN167($41) in order to cover both shipping and handling costs.