Romania is a small country located in southeastern Europe. The sovereign state became a member of the European Union (EU) in 2007. The size of the country is 92,043 square miles. When comparing it in size to the United States Romania is about the size of the state of Oregon. The largest geographical feature of the country is the Carpathian Mountains and the climate of the country has a temperature that ranges from 25 to 77 degrees Fahrenheit (“Romania”). Romania has a climate that is like some regions in the United States. Summers are hot, while winters are cold. Two of the most cultivated crops are corn and wheat. The capital of Romania is Bucharest.

The population of Romania is 21.6 million inhabitants. Ethnic Romanians are the majority group within the society compromising 83% of the population (“Romania”). Other minority groups include Hungarians, Roma, Germans, Turks, and Serbs. Moldova is the official language spoken in the country. English is taught to most children in school as a second language. The religion that is practiced the most in the country is Romanian Orthodox Church. Two other religions that have followers in the country are Protestants and Roman Catholics. The most popular sport in Romania is soccer. Other sports played and followed by Romanians include basketball, tennis, boxing, and gymnastics.

Western-style clothing such as jeans, t-shirts, and sports jackets are visualized as fashionable by the young generation, while elders wear conservative clothes (“Romania”). Its society is built on strong family values. The most important meal for Romanians is lunch, but most people eat three meals a day. Most working people prefer to eat lunch outside work at food establishments including fast foods, casual eating places, and restaurants. A handshake is the proper greeting between male friends, family and business associates, while women use a handshake in business settings and a kiss in the cheek between close friends. Housing in the cities is mostly composed of apartment buildings. Despite greater poverty, larger homes are found in the rural regions.

Romania used to be controlled by a communist regime, but today the country’s government is a democracy. The head of state is President Klaus Iohannis, while the head of the government is Prime Minister Sorin Grindeanu. The governmental structure includes a bicameral parliament composed of 176 senators and 412 chambers of deputies.
Romanian citizens can vote after they reach the age of 18. Elections for president are held every five years. A president cannot serve more than two terms if elected twice. Despite the existence of a democratic state, there exists resistance to change within the population that does not believe in politicians due to the history of abuse by former communist governments. Governmental corruption is a problem that companies face when doing business in Romania. When doing business in this country it is important for companies to maintain an elevated level of ethics and stay away from devious actions such as bribes to governmental officials.

Romania has an open economy that benefits from the laws and regulations that govern the European Union. In 2016, the gross domestic product of Romania was $183.1 billion or $9,450 per capita (“Market Opportunities”). This emerging economy is one of the fastest growing in the world outside of Asia with a GDP growth in 2016 of 4.8%. Its economy cannot be compared to that of a developed country such as the United States which enjoys a GDP per capita of $51,668 (“United States GDP”). The unemployment rate in Romania is 5.3%. This metric reflects that the country does not have an unemployment problem.

Some of the natural resources that the country has include gold, copper, marble, coal, and arable land. The mountainous region has lots of potential for agricultural growth. There is a correlation between is natural resources and the products produced in the economy as Romania manufactures metals, chemicals, and fuels. A major trading partner in the energy sector is Russia. The official currency of the country is Romanian leu. As of May 20, 2017, the exchange rate between the U.S dollar and Romanian leu was 1 to 4.07 (“Xe currency converter”). The country has an effective communication system as there are lots of telephones and cellular phones, while internet penetration is rising. The urban areas have an efficient and inexpensive public transportation system that includes a train system that links major cities.

Romania represents an attractive market to invest due its GPD growth and low unemployment of the economy. There are opportunities in the country for introduction of consumer products since young people are attracted to the Western culture. Another market with lots of potential is the restaurant sector. Society and the working class value the importance of lunch. A third sector that has growth potential within this economy is technology products. Cellular phones are readily available and in 2016 the internet penetration of Romania reached 58% (“Romania internet users.”) The use of mobile and online marketing can be used to create brand awareness. The firm should stay way from introducing major housing products such as furniture or appliances since most Romanians have limited living space. Luxury products are also not suitable for this economy due low gross domestic product per capita. The use of corporate social responsibility as a strategy can help the firm gain the trust of the community. Due to the existence of governmental corruption the company should be careful in the mode of entry chosen. Exporting or joint ventures are better options than a whole-owned subsidiary.