Professional Documents
Culture Documents
• Southeastern Europe
• Italy and Albania re-connected in the 1980’s after WWII, and today seems as though it is
• Relations between Greece and Albania became increasingly strained after the fall of the
communist regime in 1991. Today the relations between the two countries are relatively
good, after the two signed a treaty for peace and friendship in 1996.
• Macedonia and Albania have good relations involving trade, approximately 2 million
2) Size-comparison:
10,555sq.mi.
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3) Topography and Climate:
The majority of Albania is mountainous with 70% of the land at elevations above 300m
(1000ft). The remainder of the country is comprised of coastal lowlands and other small plains
along the coast. The climate in the northern region has cold wet winters and mild summers. The
coastal areas have hot dry summers and cold rainy winters. The mountainous regions in the
country are generally cooler and wetter than the coastal plains year round. With Albania’s poor
Northern region (to be discussed further on). The Southern region and mountain ranges are
more accessible and this influences the development of their infrastructure and economic
growth.4
4) Family Structure:
• In traditional society, the household consisted of the mother and father as well as their
unmarried daughters, and married sons and their wives and children. The extended
families were quite large. When the father died, the eldest son assumed the responsibility
of the extended family. Upon the death of both parents, all the property was divided
equally amongst the sons. Daughters could not inherit family property.
• Today’s family structure is not that different. Although the family trends are still quite
large, most Albanian families have three children. Even though the extended family is
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smaller it is still common for one son and his family to remain at home and take care of
• Throughout the 1990’s and the end of communism, the political environment has been
shaky and slow to recuperate. For example, in 1997 the State Department released a
increasing violence from political instability, also all US workers within the country were
Albania has Chief of State who is President, and a Head of Government who is
• Currently the government is slowly beginning and is expected to maintain stability over
the next five years, as Albania continually attempts to join the EU.8
After 52 years without any form of relations, in March of 1991 the United States
and Albania re-established diplomatic and bilateral relations. Later that year in October 1991,
United States built an embassy in the capital Tirana. Since then the US has provided Albania
with over $550 million in assistance, making the US the second largest bilateral economic donor
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over Italy. Also, Albania has helped the US in the war on terrorism, by freezing terrorist assets,
Albania and the United States signed and ratified several agreements in 2003. Among
these include a treaty on the Prevention and Proliferation of Weapons of Mass Destruction;
Promotion of Defense and Military Relations; and The Adriatic Charter. Also included was an
Agreement regarding the non-surrender of persons to the International Criminal Court. The
United States supports Albania’s EU and NATO membership goals. With Albania moving
towards NATO membership, the US and Albania signed a Supplementary Agreement to the
In 2006, Albania opened the doors for the largest foreign direct investment project ever in
Albania, $1.9 Billion! With $600 million being US equipment and services, this is a huge
development in Political Relations between the US and Albania. This project is an “Energy
Field” that will hopefully provide Albania with all of its power and gas needs. The construction
of this project is providing 4,000 jobs over the next 18 months, and huge investment
7) Economic Bases:
Agriculture: 23.3%
Industry: 18.8%
Services: 57.9 %
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• GNP=$ 5.7 Billion *This graph depicts the sharp increase in FDI
inflows.
• Balance of Payments:
• Exports – Textiles and footwear, asphalt, metals and metallic ores, crude oil, vegetables,
Export Trading Partners – Italy 72.4%, Greece 10.5%, Serbia and Montenegro
5%.
Import Trading Partners – Italy 29.3%, Greece 16.4%, Turkey 7.5%, China 6.6%,
9) US Trade Relations:
The volume of US and Albanian trade relations is very low, but growing. In 2006,
Albania imported $27.6 million of US products, and exported $23.9 million of Albanian products
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17th largest trading partner. One main issue that limits the US from being a trading partner with
The products the US imports from Albania ranges in importance. For example, in 2006
the US imported $11.4 million in liquid petroleum gases, $6.5 million imported of leather and
rubber materials, and $3.5 million in tea and spices(top imports among others). Petroleum
products are of more significance to the US than tea and spices. Yet, with petroleum products
being Albania’s most exported products, it is clear these products are also very important to
products is of more importance. The US product most imported by Albania includes measure,
testing and control products, followed by drilling and oilfield equipment. With all of the
infrastructure and energy projects occurring, it would not be possible without some of the US
excavation and telecommunication products, without these growth tools the country’s
infrastructure development would be quite stagnant, therefore Albania’s imports are more
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• Also belongs to: ECE, FAO, IAEA, IFAD, ILO, IMO, ITU, UNCTAD, UNESCO,
Albania became the 138th member of the WTO on September 8, 2000. The WTO Director-
General stated, “Membership promises a more prosperous future and raised living standards for
all Albanian citizens. I also believe that, by encouraging the trade links between countries, the
WTO can help foster greater peace, stability and development in south-eastern Europe. Albania's
membership brings this Organization ever closer to being a truly ‘World Trade Organization’.”
Albania's Minister for Economic Cooperation and Trade, Ermelinda Meksi, agreed saying “the
WTO membership presents us with a new role in the international community” and would help
The Corridor VIII Alliance is of great importance to Albania. The Corridor VIII Alliance
promotes economic development throughout the Balkan Region. The Corridor represents
economic growth and job creation for the entire area. The Corridor will link the Adriatic Sea
Ports of Durres and Vlore in Albania to the Black Sea Ports of Burgas and Varna. This will offer
great potential for development of the involved nations and to the Southern Balkans as a region.
The Agreement on Trade Facilitation and Liberalization was signed by many neighboring
Bulgaria, Kosovo, and Moldova. The Agreement was made to develop a regional market of 65
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million consumers and is also of great importance to Albania. The goals of the Agreement are to
reduce and liberalize customs, duties and other trade barriers. Through the elimination of these
barriers, the agreement aims to establish free trade areas between the participating countries over
This is a section that we completed last and after researching Albania it was a difficult
choice because Albania seemed to fit stage 3, because infrastructure growth rate was very
low compared to the growth of production and its rapid urbanization. However, it is
definitely not the fastest growing like China or India, therefore we are labeling the country a
of stages 2 & 3, Albania may be a dual economy. Characteristics of Stage 2 include being in
also changes in the governments stand point. Comparing that to Albania, production has
greatly increased within the country and has become one of the worlds leading shoe
producers and leather processors. In fact, Albania produces 1.2 million pairs of shoes each
month. Although the country’s infrastructure is becoming more complex, it is definitely still
developing and also is under- funded by the government. Although the country’s government
is still extremely poor, they have abolished communism demonstrating a state of transition. 18
8
• According the National Council of Radio and Television Albania has an estimated 257
media outlets, including 66 radio stations and 65 television stations, with 3 national and
62 local stations.
• Radio-Television of Albania – RTSH, can reach 73% of the country however its
• TVSH-Albanian Television – Another large public television station that is often accused
and BMW.
sector in Albania has greatly increased over the last decade. Until 1995 RTSH was
Albania’s only television station. Many television and radio stations however have not
It is evident that Albania is a P-Time culture, here are some reasons why:
• Albanians have low individualism. Religion is “indifferent,” many people have very
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• Being the poorest country in Europe, time really is not seen as money, unlike M-Time
cultures.
• Under the communist rule women had quite a fair status, the regime wanted to eliminate
gender discrimination and women were integrated into the work force.
• With the fall of communism women’s status also fell. As unemployment sky-rocketed
women lost their jobs resulting in only 16% of women working outside the home.
• Since this time there has been a resurgence of traditional values which led many Albanian
women to be the caretaker of the home. Many women also have became divorced and
• Muslim Albanian Women are not required to veil their faces, although they may be worn.
The “Energy Field” operation will bring 4,000 jobs to the country during actual construction
and 400 are scheduled to remain as permanent jobs at the conclusion of the project. It is
Beyond this is has been difficult finding information regarding this matter, however, we
are aware there are American workers are working there and have been for some time. For
example, in 1997 around the same time that American tourists were told to leave Albania, the US
government ordered any “nonessential” workers to leave the country immediately by commercial
airlines. Specifically 160 US workers were to leave the country, with these workers being
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“nonessential,” there is the possibility that “essential” US workers stayed behind in Albania to
continue working. It was also noted there were 2,000 private US citizens in Albania at the
time.23
17) Demographics:
• 3,600,000
• Since 1990, a substantial amount of Albania’s population has moved from rural to urban
areas.
Urban: 57%
Rural: 43%
• Tirana(Capital): 600,000
• Elbasan: 225,000
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• Shkoder: 110,000
Population density:
18) Language:
Official:
• Albanian
• Gheg
• Tosk
Although Albanian is predominately spoken across Albania, the Shkumbin River acts
as a dividing line for the two main dialects, where Gheg is spoken in Northern
• Greek
• Vlach( Romanian)
19) Religion:
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• In 1967, under communist rule the government completely banned religion in Albania.
To avoid hostile situations many families and people voluntarily ended and gave-up
• Many people lived decades without practicing religion, it had little or no meaning in their
Breakdown of:
• Muslim- 70%
• Orthodox- 20%
• Roman Catholic-10%
Northern Albania27
Urban Styles:
Rented flats
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Privately owned family houses
Rural Style:
• Pre-War housing in rural areas was mostly self-built, small and made of natural stone or
rock.
• Many dwellings were completely destroyed during WWII, and that began the move
• Common to traditional houses in Albania is ground floors used for storage. In more rural
areas the ground floor may be used to house animals. The next floor up is typically the
living area of the family containing a fire place, eating area, and two to three bedrooms.
A third floor is sometimes added in urban areas for extra sleeping quarters or for
entertainment purposes. 28
21) Education:
Before the Communist rule, Albania’s illiteracy rate was as high as 85%! Schools were
scarce between WWI and WWII, and education was not very important during those times.
When the Communist Rule over took the country in 1944, the regime wanted to “wipe-out”
illiteracy. The regulations became so strict that anyone between the ages of 12 and 40 who could
not read or write, were mandated to attend classes to learn. Since these times of struggle the
country’s literacy rate has improved remarkably (Zickel, Iwaskiw, 1994). Today the overall
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literacy rate in Albania is 86.5%, the male literacy rate is 93.3% and female literacy rate is
79.5%. Since the rather large population movements in the 1990’s to urban areas, education has
moved as well. Thousands of teachers moved to urban areas to follow students. In fact, the most
dramatic shifts have been a general decrease in rural school enrollment, down as much as 30%.
It seems as though education may be similar to religion in Albania in that the country went
through times where school was almost non-existent and its lack of importance is still evident.
Before 1991, there was no business education whatsoever, but that has changed. In 1991,
many countries including Italy, the United States and Germany, provided business training
grants, to promote business education and economic growth. With the country interested in
foreign business, trade and relations, the country seems to realize the importance of a savvy
business education and how it will improve their economic and social status.29
22) Environment:
Unfortunately under the reign of communism, Albania was heavily polluted and the
country still remains extremely polluted today. It has been over a decade since Albania has
emerged from communism, yet for a population today over 3.5 million there is not one waste-
water treatment plant, a sanitary landfill or toxic-waste disposal site in the country. Recently the
past has really caught up to the country. Being hopeful in joining the EU, the large amount of
pollution has acted like a hurdle the country must overcome before they can successfully join.
Albania holds high potential for the growth of Hydro-electricity (to be discussed in Natural
resources), and provides the country with an opportunity to take advantage of green power. This
will not only improve the environment and increase the use of green marketing, but may also
build economic growth in the long run. Using green marketing in Albania will not only increase
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production and satisfy consumer needs and wants, but complete that objective in an
environmentally friendly way. Within the last two years the country has been researching wind
and solar power, with the high cost of solar power the country sees more potential for wind
power.30
23) Infrastructure:
• Albania is the poorest country in Europe today, its infrastructure is generally inadequate,
• Energy Infrastructure unfortunately cannot keep up with the country’s demand, but
projects are coming along. For example, increased use of hydroelectricity, and the
• US infrastructure is much more developed than Albania’s, not only in its complexity, but
also strength. In the US you can basically get anywhere using any form of transportation.
In Albania you might have to fly to one spot, to drive to another, to catch a train or a boat
Infrastructure Statistics:
3 paved
8 unpaved
• Roadways- 18,000km
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o Many of Albania’s roads are not only mountainous, but are in extremely poor
conditions. Every year more roads are being repaired and paved, also many new
7,020 km paved
10,980 km unpaved
• Waterways- 43 km
23 cargo ships
1 foreign-owned(Turkey)
• Railways- 447 km
• Pipelines-
Gas- 339 km
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• Excise, Consumption and Luxury Taxes-
Applied to luxury import products, such as: soft drinks, alcoholic beverages,
o These taxes can range from 20-65 %, and are levied in addition to tariffs.
• Standards- Imports are however subject to standards and quality control, which follows
The ethnic breakdown in Albania is predominately Albanian, with 95% of the population
from that background. The second largest ethnic group in Albania is Greek at 3%, followed by
2% of other ethnic groups, which include: Gypsy, Serb, Macedonian, and Bulgarian.34
Albania’s labor force is comprised of about 1.1 million people, which does not take into
account the 352,000 emigrant workers from Italy and Greece. In recent findings agriculture
holds the highest percentage of Albanian workers at 58%. Services industry follows with 23%,
and the manufacturing industry holds 19% of workers. Although manufacturing currently holds
the lowest amount of workers in the labor force, production is rapidly expanding, and this figure
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27) Cultural & Social Relations with the US:
The United States and Albania share common cultural and social aspects, while at the
same time each country has their own and unique differences. Albanians are known as being
hospitable and open to strangers and tourists, and it has been known that people who live in the
states, especially in New York, are rude to strangers and tourists. However, it is also known that
people in the south have a certain “southern charm” and are hospitable as well. The culture in
the US is known for being individualistic, yielding many different cultures and sub-cultures
within the country. Albania also shares differences, for some Albanians have moved away and
returned with a different aspect of culture from living in Greece or Italy. The US has many
important icons and sees art as being important. Many Albanians also appreciate art, and many
The US and Albania also share similarities in social aspects. Children in Albania are
raised to respect elders and recognize the father as the head of the household, these upbringings
are similar to that of the US. The two countries also share some social norms, it is common for
Albania is an interesting country in that the southern area of the country has large
resources of Petroleum, natural gas, coal and asphalt deep underground. Unlike the south the
north holds a variety of metallic content such as: Ferro-Chromium (chrome), Copper, ferronickel
and cobalt. The country also has scattered deposits of bauxite, phosphorite, gold, silver, kaolin,
magnesite, dolomite, and gypsum. Although most of Albania’s high quality chrome deposits
have been exhausted since the late 1990’s, chromium products were still Albania’s 3rd largest
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export in 2005. There are huge markets for chrome products in American cities like Miami and
Atlanta (really all large cities), where chrome rims are highly desirable, making chrome an
important resource for Albania. Also, with the south having abundances of petroleum and gas,
these resources are important, and will become significant for Albania in the future.37
Due to the fact that over 70% of Albania is above sea level with large mountainous
regions, this has provided a great potential in hydroelectric power for the country. After
examining the country’s pollution level and desire to join the EU, taking advantage of
hydroelectric power may spark economic growth and increased trade with US companies if the
country succeeds in joining the EU. One possible downfall of this is droughts. In the late 1980’s
and 1990 the country dealt with severe droughts and hydro-power dried-up, and only resumed in
1991, when heavy rainfall returned. In 2004, Albania’s Prime Minister urged US investors to see
Albania’s distribution system is similar to many other countries, including that of the US.
The country markets and distributes goods using a number of methods including: merchants,
agents, middlemen, retailers and wholesalers. Although these systems are all in place, it was
noted these systems are much less sophisticated than that of the rest of Europe. One important
and interesting fact is that Albanian’s are price sensitive, and with that in mind, keeping
middlemen out of the picture to keep costs low would be one important strategy. Typically when
selling average consumer products in Albania, one agent or distributor can cover the entire
country effectively.39
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30) US Investment Potential:
• Within the last few years US businesses have begun to play a major role in Albania. In
fact, in April of 2006 the US funded the largest FDI ever in Albania, $1.9 Billion on an
energy “field” that is expected when complete to provide Albania with all the power and
• This project is anticipating use of over $600 million in US equipment and services.
• Also, the US using the Ex-Im Bank is furthering the opportunities for FDI, providing
• There are several ways a US firm can got products into Albania, these include:
Sales Channels
expanding.
• Quite interesting are some of the company names that export to Albania, some include:
Coca-Cola/Pepsi
P&G/Gillette
General Electric41
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• We called the US Embassy in Tirana, just to talk to an Albanian. We will discuss this
• Member 1:
tobacco, it would possibly provide potential not only for our company but Albania
decreasing our import costs and tariffs, at the same time we would be boosting
revenue for Albania. Although the country is poor, utilizing the country’s tobacco
will help keep the price low for our customers, while keeping that western appeal.
because Yoyo’s are a cheap form of entertainment. There also may be a large
market for our product with about 65% of the country’s population between the
ages of 15 and 65. After the product has had so much success back in the States,
our company may have a great opportunity. With discretionary income slowly
rising, but not to the point they can afford cell phones and other hand held
electronics, kids and young adults will want a form of inexpensive entertainment.
• Member 2:
only washed his hair with soap maybe once every two weeks. Therefore it was
clear that shampoo has potential in the market as discretionary income slowly
rises. Beyond income rising, as people have more money they may want the
western feel of washing their hair with soap, even if bottled in small containers.
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Product 4- Credit Cards: As Albania is slowly repairing itself, people are going to
need a service that can help them. Although the country is poor, extending a line
of credit can provide not only the citizens of the country, but also the government
with the ability to strengthen the economy. Being a service there would be little
using a western appeal to attract consumers. After time we could possibly market the
product in Greece also due to the products western appeal, perhaps making it a
Product 2-YoYo’s→ The product would be on the geocentric level, because no matter
where the product is sold a yoyo will basically still be a yoyo. This product could be
and oils, also difference in water types). Developing a formula to sell in one region
and not another suggests these products are modified based on consumers
preferences.
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Product 4-Credit Cards→ The same service our company provides can be obtained
because anywhere in the world we will extend credit to people we have accepted and
there will be no significant differences between the cards and interests rates in one
BIBLIOGRAPGHY:
Bureau of European and Eurasian Affairs. Background Note: Albania. October 2006.
US Department of State. Retrieved Feb 16, 2007, Website:
http://www.state.gov/r/pa/ei/bgn/3235.htm.
Dashi, Omer, Nikolla, Frank. (2004, July 30). Albania: 2004 Country Commercial Guide.
Retrieved March 8, 2007, Website:
http://strategis.ic.gc.ca/epic/site/imr-ri.nsf/en/gr126287e.html.
The Library of Congress. Albania: Family Life. Nov. 07, 2005. Retrieved Mar. 10, 2007,
Website: http://lcweb2.loc.gov/frd/cs/altoc.html.
The World Factbook. CIA- The World Factbook- Albania. Feb 08 2007. Retrieved Feb 14 2007,
Website:
http://en.wikipedia.org/wiki/Education_in_Albania#Education_in_the_New_Albania.
State Department: Albania-Travel Warning. Mar 1997. Retrieved Feb 25, 2007, website:
http://www.hri.org/docs/USSD-Travel/Albania.97-007.html.
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World News Story Page. “U.S. orders nonessential workers out of Albania.” Mar.1997
Retrieved Feb 25, 2007, Website:
http://www.cnn.com/world/9703/12/albania.us/index.html.
Woodard, Colin. "Can They Blame Ya, Albania." Environmental News and Commentary.
Apr. 13 2005. Retrieved 2 Mar 2007, Website:
http://www.grist.org/news/maindish/2005/04/13/woodard-albania/.
Zickel, Raymond, Iwaskiw, Walter. "Albania: A Country Study." US Library of Congress, 1994.
Retrieved Feb 18, 2007, Website: http://countrystudies.us/albania/index.htm.
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1
CIA- The World Factbook- Albania. Updated Feb. 08 2007, p.1.
2
Dashi, Nikola. Albania: 2004 County Commercial Guide.2004.
3
The World Factbook, p. 2.
4
Zickel, Iwaskiw. Albania: A Country Study. US Library of Congress
5
The World Factbook, p. 7.
6
Albania: Family Life. The Library of Congress, 2005.
7
State Department, Albania-Travel Warning, 1997.
8
The World Factbook, p.3.
9
Background Note: Albania. US Dept. of State. Oct.2006.
10
Background Note: Albania.
11
The World Factbook. P.7.
12
The World Factbook. P.8.
13
Trade with Albania: 2007, p.1.
14
Albania: A Country Study
15
AATDA, 2007.
16
Background Note: Albania.
17
Albania: A Country Study
18
Dashi, Nikola. Albania: 2004 County Commercial Guide.
19
Tirana Times, 2007.
20
Zickel, Iwaskiw, 1994.
21
Dashi, Nikola. Albania: 2004 County Commercial Guide
22
Reis.Embassy of Unites States-Tirana: Albania.2006.
23
World News Story Page. 1997.
24
Woodard. “Can They Blame You Albania”Apr.2005.
25
The World Factbook, p. 5.
26
Islamic Heritage. Religiosity and Indifference.
27
The World Factbook, p. 5.
28
Dashi, Nikola. Albania: 2004 County Commercial Guide.
29
The World Factbook, p. 6.
30
Woodard, 2005.
31
Background Note: Albania.
32
The World Factbook, p. 10.
33
How to Export to Albania. US Dept. of Commerce. 2005.
34
The World Factbook, p. 4.
35
Albania: A Country Study.
36
Albania: 2004 Country Commercial Guide.
37
Zickel, Iwaskiw. 1994.
38
Albania: 2004 Country Commercial Guide.
39
How to Export to Albania.
40
Reis, 2006.
41
How to Export to Albania. 2005.