Business in Luxembourg Essay Example | Topics and Well Written Essays - 3000 words

Business in Luxembourg - Essay Example But over the last few decades the steel industry’s importance has come down while financial and banking services have taken the front seat. The financial services sector constituted more than 80% of the country’s GDP. In 2006, Luxembourg had 156 banks. Some of the key points which have helped the economy to perform well are educated labour force adept in different languages, state of the art communications system, easy admittance to surrounding European economies, and a stable government. The government has also taken the initiative to showcase the country as a communications and audio visual hub. The government has promoted satellite technology in this context. The country with its stable political background has attracted considerable amount of FDI or foreign direct investments in small, medium and large industrial projects. Though the agricultural sector constitutes of 1% of the economy the country is famous for high quality white wines (Country profile: Luxembourg, January 2009; Luxembourg: Economy, September 2008). The country holds a strategic location in Europe being surrounded by or rather landlocked by three big European economies of Germany, France and Belgium. Being one of the most prosperous countries in the world, it has an open culture and is hospitable to people and business from different areas. Moreover, the highly educated workforce is an asset to the countries economy and has attracted many foreign multinationals to set up their IT and financial clusters there. The country offers numerous tax rebates which has acted as an impetus for its growth, especially in the arena of financial services and banking. It has very high level of telecommunication, satellite and basic infrastructure. It believes in liberal policies and has been a proponent of the same at the European Union level also. This has assisted it in becoming one of the best performing economies not only in Europe but all over the world. It has been able to leverage