Sample Research paper on Country Profile Finland

 

Country Profile Finland

Profiling Finland

Finland is a country that is located at the northern most part of Europe. It is surrounded by the Gulf of Finland, the Baltic gulf, the Bothnia gulf as well as countries including Russia, Sweden and Norway (DiPiazza, 2011 P. 8. It has a population of approximately 5.4 million people. The land mass is mostly covered with forest (approximately 70%), and 10% water. Only approximate 8% of the land mass is used for cultivation. There are various languages that are spoken in the country, but the Finnish language is the dominant one, accounting for almost 94% of the total population finish speakers. In terms of economics, the country’s GDP rates highly as compared to the world rankings, its corruption and democracy index is also high, thus making the country good for doing business. The country’s unemployment rate is high, though at seven percent. The country’s FDI is among the best owing to the investment opportunities recorded by foreigners in the country. At the same time, the country has a high budget, which exceeds the revenue collection, thus making the country run ion a deficit budget. In terms of infrastructure, the country has a well-established transport, engineering and communication networks.

Finland profile

  • Finland is neighboured by Norway, Sweden and Russia.
  • The country’s population is approximate 5.4 million people who speak mostly the finish
  • There are also other languages spoken in the country, including Russian, German and some other languages, which forms the minority few.
  • Most of the country’s towns are located in the south, although Helsinki, which is the capital city, is in north. The largest sector that contributes to the economy is the metal and engineering, though the industrial forestry accounts for the largest export industry.

Finland’s economic outlook

Advantages of doing business in Finland

  • Business and trade freedom as well as loans and reduced tax.
  • Locational advantage and the high purchasing power of the people.
  • Good infrastructure and innovations in the latest technologies and the stable government

Disadvantages of working in Finland

  • Labor challenges, Language barrier and the ongoing crisis between Russia and Ukraine
  • High tax and the seasonal pace of business
  • I would consider doing business in Finland, as the country is rich and stable, relatively low on corruption index and high in democracy, the high rate of consumption. At the same time, the location of the country and the infrastructure and communication network is another reason to admire work in Finland.

Supporting texts and graphics

Location

Finland is the northernmost country that is found in Europe and it borders the Baltic Sea, Gulf of Bothnia and the Gulf of Finland, as well as countries like Sweden, Russia and Norway (Phillips, 2008). One quarter of the land mass lies in the north of the Arctic Circle (Tan, 2007 P. 7). Although the capital city is located in Helsinki, the majority of the country towns are located to the south of the country. The country’s size, which is 130128sq. Miles, which makes it the fifth largest in Europe comprises of 10% water, almost 70% forest, 8% of the mass is used for cultivation while the rest 12% is used for other purposed including mining and industries. The official language is Finnish, which is spoken by 94% of the population and the rest, which includes Russian, and Swedish speakers take the rest of the share. If the country was more utilised, it could emerge higher in the global ranking.

Finland Economic outlook

The country’s economic freedom score is above average at 73.4 making the country to be ranked 19 freest in the 2014 index, and 9th in Europe, which comprises of 43 countries. With a population of 5.4 million people and a GDP of $197.5 billion, the country’s 20 year history has recorded an economic freedom score of 9.7, thus making the country be ranked 6th best performing. This is attributed by various facts, including the market openness, investment and financial freedom. The country fares well when compared to others in the global arena.  The per capita income of the country stands at $36395 with an unemployment index of 7.7%. The annual growth is recorded as -0.2% and an inflation rate of 3.2%. The foreign direct index exceeds $1805.6 million. This shows that the country has the potential of growth. This fact makes the country an easier investment docket.

GDP

Looking at the diagram above, the country’s GDP in comparison to other countries is considerably better. This has been made possible by the strong growth the country has experienced, innovations and structural reforms that were made prior to the global economic and financial crisis, thus making the country one of the most competitive economies (OECD, 2014). The recent trend, however shows decreasing competition and other countries are performing better. This is as a result of the drop in output and the collapse of the electronics and forestry sector (Organization, ECD. 2006). Source 🙁 Trading economics, 2014)

Budget

The above trend indicates that the government has been running on a budget deficit since 2010. Finland’s budget currently stands at $136200 million, while the expenses are $137600million, thus creating a deficit. The projected 2015 budget spending is in excess of £53.7 billion against an estimated revenue of £49.2 billion (Kuosmanen & Vataja, 2014). This has been greatly criticized by the EU, as it will violate the 0.5% deficit rule (Wall Street Journal, 2014). The country must put in measures to arrest the exploding deficit as it may hurt the economy as well as investors.

FDI

Finland leads the world in many international comparisons. This is because the country has a strong economy, stable and Morden that makes it achieve technological advantage. Despite this fact, the fall and decline of wood, mobile and engineering is affecting the country’s FDI. This has led to a declining trend in the FDI in the country as shown in the figure above. In 2013, the country enjoyed the fastest growth in FDI, when it captured 108 investments in Helsinki (News, 2014). The FDI is made possible by new marketing and sales operations, especially in the software and business (News, 2014)

Unemployment

Unemployment Finland September 2014

  Total Men Women
< Unemployment 2014-08
Unemployment [+] 8.7% 9.3% 8.0%
Unemployment less than 25 years [+] 19.8% 22.3% 17.4%
Unemployed 25 years and over [+] 7.1% 7.6% 6.6%

Finland: Unemployment rate by sex and age

The unemployment is high in the country and should be checked through strategic stimulus programs.

Infrastructure

Finland, is strategically located and has a well-established infrastructure network (Kuosmanen & Vataja, 2014). At the same time, in terms of energy production, the country has a well-established source of fossil fuel, hydroelectric power, nuclear and other sources. Its telecommunication network.

 

Commentary on Global Business

The world today seems like a small global village where trading is viable in a holistic way. This being the case, a country may not fall insufficient as it can always get the required materials from the world market. Doing business internationally promotes the foreign exchange, while at the same time, ensures that the currency of a country is stabilized. Foreign direct investment is the amount that a country earns as a result of foreign investment and this helps in boosting the country’s GDP. Finland in particular has been key to international growth as a result of the products that it produces including timber, electronic goods and engineering works. It location also and the presence of a good infrastructures helps the country in competing in the global front. The country has been able to attract investors as a result of the democratic government and the non-tolerance to corruption.

References

Blöndal, J. R., Kristensen, J. K., & Ruffner, M. (2002). Budgeting in Finland.OECD Journal on budgeting2(2), 119-152.

DiPiazza, F. (2011). Finland in pictures. Minneapolis, MN: Twenty-First Century Books.

Honkapohja, S., Koskela, E. A., Leibfritz, W., & Uusitalo, R. (2009). Economic prosperity recaptured: the Finnish path from crisis to rapid growth. MIT Press.

Kuosmanen, P., & Vataja, J. (2014). Forecasting GDP growth with financial market data in Finland: Revisiting stylized facts in a small open economy during the financial crisis. Review of Financial Economics23(2), 90–97.

OECD. (2014). Economic surveys and country surveillance. Economic Survey of Finland 2014. Accessed on 10th august, 2014 from: http://www.oecd.org/economy/surveys/economic-survey-finland.htm

Organisation,. E. C.-D. (2006). OECD Economic Surveys: Finland – Volume 2006 Issue 5. Paris: Organisation for Economic Co-operation and Development.

Phillips, D. A. (2008). Finland. New York: InfoBase Pub.

Tan, C. L. (2007). Finland. Tarrytown, NY: Marshall Cavendish.

Trading economics, (2014). Finland GDP growth rate: 1975-2014 accessed on 10th august from: http://www.tradingeconomics.com/finland/gdp-growth

Wall Street Journal, (2014). Finland 2015 Budget Will Violate EU Rules, Official Says: Finland Could Face Sanctions For Not Meeting Budget-Balance Rules. Retrieved on 11-11-2014, from: http://online.wsj.com/articles/finland-2015-budget-will-violate-eu-rules-official-says-1409256114