Country Study of Norway

Country Study of Norway

Verizon is an American telecommunications company that has not yet expanded operations in global markets. Therefore, the company needs to consider selling wireless networks in countries where the telecommunications industry is developing rapidly. One of the ideal countries is Norway. According to Espeli (2018), the telecommunications market in Norway has significantly grown over recent years and is anticipated to continue growing as the population continues embracing technology. The increase in the urban population also creates an opportunity for the telecommunication industry’s growth. The use of technology in the business sector, such as applying the Internet of Things in the country, further allows companies to vent into wireless networks and telecommunication products.

Country Study

Economic Environment

Norway is a wealthy country with a GDP of $362 billion. The GDP per capita is $91500 and is expected to continue increasing due to the country’s rapid economic growth. The government has a high population of highly skilled and educated workforce. The main sources of skilled labor are the local academic and skilled foreign workers who move to Norway to search for better jobs (Norwegian Ministry of Finance, 2020). In 2021, professionals represented the country’s highest occupation type, amounting to 2.8 million professional employees. More than 500,000 employees are in the sales and service sectors, representing the country’s second-largest occupation segment, followed by associate professionals and technicians. The workforce is expected to continue growing as employment opportunities increase. By November 2020, the unemployment rate had dropped to 5% from 5.2% in October. By the third quarter of 2021, long-term unemployment had decreased to 1% from 1.2% in the previous quarter.

Get in touch with us at eminencepapers.com to get help with your homework. Our team of experts is ready to help.

The trade of natural resources supports Norway’s economy. Between 2020 and 2021, the country shipped $159.8 billion of goods worldwide. The main exports included crude oil, raw aluminum, petroleum gas, refined petroleum oils, and fresh whole fish. The country’s export partners are Asia, Latin America, Africa, the Marshall Islands, New Zealand, and Australia (Warner-Søderholm et al., 2014). Norway also imports cargo and passenger ships, cars, broadcasting equipment, refined petroleum, and computers. The importing partners are the United Kingdom, Sweden, Germany, France, Netherlands, Belgium, United States, Denmark, Spain, and South Korea (Warner-Søderholm et al., 2014). However, the largest import partner is China, followed by Germany. The country’s good infrastructure supports Norway’s success in trading activities, a good road network with four road route tiers, including municipal, county, private, and national. Norway also has a good telecommunications infrastructure incorporating a complete telephone network digitization.

The main industries supporting NNorway’seconomy are oil and gas, aquaculture, hydropower, tourism, and shipping. The oil and gas industry is vital to the economy because it contributes to 20% of the Gross Domestic Product (GDP). The government has many hydropower plants supplying electricity power throughout the country. The aquaculture industry focuses on seafood farming, export, and production. The government emphasizes sustainable fishing practices to maintain the constant supply of fish. The location along the coastline supports the shipping industry, facilitating the movement of goods in and out of the country. The tourism industry is rapidly growing as people gain interest in Viking history portrayed in different films.

Geographic Environment

Norway is one of the countries with many natural resources such as fish, petroleum, minerals, and forests. Resources and raw materials are readily available but are regulated by environmental regulations that regulate the use of various natural resources and control pollution and depletion of resources such as fish due to poor fishing practices and water pollution. Most parts of the country experience a maritime climate with cool summers and mild winters due to the North Atlantic Ocean. The people of Norway have also embraced different land utilization practices, including agriculture, due to fertile soil and favorable climate (Norwegian Ministry of Finance, 2020). However, the weather is becoming unpredictable due to environmental issues such as depletion of the ozone layer and acidification. The country also deals with various environmental problems, such as hazardous waste and toxic contamination. Norway also faces multiple natural hazards, such as landslides, floods, avalanches, and strong winds.

Political Environment

The Norwegian government is run under a democracy and monarchy type of government. The monarch maintains executive power, but power is mainly distributed through a parliamentary system where the Prime Minister supports executive power. The country has defended political stability over the years and reduced corruption cases. Norway also has a suitable environment for foreign investment. For instance, it holds good foreign relations with many countries globally (Eurydice, 2019). The government is also actively involved in solving conflicts in various countries to maintain good trading relations. Foreign investment procedures are also friendly, limiting entry barriers. The key regulation is VAT registration when a foreign ccompany’sturnover is more than 50,000 NOK. However, the VAT is not charged on any items before completing the VAT registration process. Employers are required to arrange for an occupational pension plan for all employees with a minimum contribution of 2% of the employee. Employers are also expected to get injury insurance coverage for the employees. The employer should choose the most affordable insurance company for the employees and ensure that it covers all work-related injuries. Businesses and lawmakers support foreign investment. For instance, the government has introduced the Invest in Norway promotion agency to help foreign investors feel welcome to establish businesses in the country. Norway also has tax treaties with various countries to regulate whether disability benefits and pensions paid from Norway are taxed in the country.

References

Espeli, H. (2018). From a dual structure to state monopoly in Norwegian telecommunications. BI Norwegian Business School Sandvika.

Eurydice. (2019, August 27). Political and economic situation. Eurydice – European Commission. https://eacea.ec.europa.eu/national-policies/eurydice/norway/political-and-economic-situation_en

Norwegian Ministry of Finance. (2020). Long-term Perspectives on the Norwegian Economy 2021. Meld. St. 14 (2020–2021) Report to the Storting.

Warner-Søderholm, G., Bertsch, A., Saeed, M., & Abdullah, A. (2014). Doing business in Norway: An international perspective. Asian Journal of Research in Business Economics and Management, 4(11), 32. https://doi.org/10.5958/2249-7307.2014.00971.2

ORDER A PLAGIARISM-FREE PAPER HERE

WWe’llwrite everything from scratch

Assume your company has decided to expand its US business into an international business. Your company has asked you to research potential countries to determine which country they should grow their business to as their first overseas venture.

Country Study of Norway

Assignment Criteria:

A. Introduction
a. Pick a real organization to use as your template organization for this project. The organization can be a large multinational organization, a large domestic organization, a small organization, or your current (or previous) employer. State whether your organization will be selling a product (state product type), selling a service (state service), or setting up a manufacturing facility (state type of manufacturing).
b. Research and determine a country that you would recommend to your CEO for international expansion. State the name of the country you will be recommending for global development.

B. Perform a country study to help determine any potential issues, costs, and benefits of doing business in a particular country. At the end of your research, write a summary (250 words or more) that concludes your findings, highlighting some of the challenges, benefits, costs, etc, associated with entering this country.

Below is a list of the environmental factors you need to study and discuss in your study.
Economic/Geographic:
• GDP
o GDP –real growth rate
o GDP – per capita
• Labor
o By occupation
• Total Exports
o Exports – commodities
o Exports – partners
• Total Imports
o Import – commodities
o Import – partners
• Infrastructure – physical (transportation) & informational (communication)
• Unemployment
• Industries
IIndustries’growth rate

Geographic:
• Natural resources
• Access to resources and raw materials
• Climate
• Land use
• Current environmental issues
• Natural Hazards

Political-Legal:
• Type of government
• Political stability
• Foreign investment and approval procedures
• Regulatory requirements
• Labor and employment laws
• Governmental assistance programs for foreign businesses
• Tax laws and applicable treaties

Under External Links in our course I have provided you with a link to the CIA factbook; this is a great resource to find out many of the above facts about a country. I do require that you use at least two additional sources to complete this assignment. PLEASE remember to cite all your bases; proper citation of your sources is a requirement for this course. This assignment is to be a minimum of 2 – 4 pages typed, font 12, double-spaced.

https://www.cia.gov/the-world-factbook/countries/norway/