Country Analysis: Essay Using the business and country selected in Unit I, prepa
ID: 1199565 • Letter: C
Question
Country Analysis: Essay Using the business and country selected in Unit I, prepare a Word document of the political structure and economic environment, including important political events that may lead to success or high risk due to business expansion to that region. BBA 4301, International Finance 3 In a minimum of 500 words, be sure to include the following: 1. background and economic strategy, 2. national goals, 3. national trade policies, and 4. emerging trends. The submission should include all sources (minimum of 4) used, including the textbook, must be referenced, paraphrased and quoted material must have accompanying citations. Information about accessing the Blackboard Grading Rubric for this assignment is provided below. the country is Norway
Explanation / Answer
Country analysis: The economy of Norway is a developed mixed economy with state ownership in strategic areas. Though it is sensitiev to global business cycles, it has achieved tremendous growth since the start of industrial era. The political consensus is that to save oil and gas revenues for future generations. The main challenge of the government is to maintain a stable growth in an adverse international environment. In 2014, the housing market continued to rise representing a major threat to the solvency of the households. The Norwegian government intended to improve productivity and reduce certain taxes to boost the economy. Norway was also affected by the recession but the impact far less than that of other countries.
Finance 3: Norway is essentially a mixed economy with economic policies and income distribution patterns strongly infuenced by government intervention. A significant state ownership is felt in core industries like petroleum, telecommunications and commercial banking. An extensive government welfare system redistributing incomes through taxes remains at the core of Norwegian economic model.
The government heavily stresses on curbing unemployment and maintaining employment opportunities in remote and undeveloped areas.There is some political discussion on reducing government stake in public sector undertakings and a separate government privatization program has been set up.
Norwegian foreign trade benefited from the decline in the value of local currency in 2014. Exports of fisheries products have remained stable. Norway is only concerned by the trade sanctions imposed by Russia in the summer of 2014. Norway also has one of the largest and most modern fleets in the world.
Though the government is state-owned, Norway's tax rates are generally lower than the EU average. Companies and their branches are subject to both income tax and capital tax. The income tax is 28 percent and applies to all forms of income. The value added tax of 24 percent already exists, but the government is planning to introduce a 11 percent divident tax shareholders to support generous welfare spending. Norway has no foreign debt and in fact is a major net external creditor.
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