Economic Overview Of The Finland

Published Date: 02 Nov 2017

Part I

Content

Part I: Economic Overview of the Finland

Page No 10 - 35

1.1 Demographic Profile of Finland

1.2 Economic Overview of the Finland

1.3 Overview of Industrial Trade and Commerce

1.4 Overview of Economic Sectors of Finland

1.5 Overview of Business and Trade at International Level

1.6 Present Trade Relations and Business Volume of Different Product with India

1.7 PESTEL Analysis

1.8 Conclusion

Part I

Economic Overview of the Finland

1.1 Demographic Profile of Finland:

Authoritatively the Republic of Finland is a Nordic country situated in the Fanons Canadian region of Northern Europe. It is surrounded by Sweden in the west, Norway in the north and Russia in the east, although Estonia lays to its south crossways the Gulf of Finland.

Approximately 5.4 million people be alive in Finland, with the greater part concentrated in the southern region. It is the eighth largest country in Europe in terms of area and the most sparsely inhabited country in the European Union. Finland is a parliamentary democracy with a central government based in Helsinki and local governments in 336 municipalities. A whole of about one million inhabitants live in the Greater Helsinki area (which includes Helsinki, Espoo, Kauniainen and Vantaa), and a third of the country's GDP is produced there. Other larger cities include Tampere, Turku, Oulu, Jyväskylä, Lahti and Kuopio.

Finland is populated by the Finnish people, and 92% of the population speaks the Finnish language. Finland was traditionally a part of Sweden, and from 1809–1917 was an autonomous Grand Duchy within the Russian territory. The Finnish Declaration of Independence from Russia in 1917 was followed by a civil war in which the leftist side was crushed with German support. Finland fought World War II as basically three separate conflicts: the Winter War (1939–1940), the Continuation War (1941–1944), and the Lapland War (1944–1945). Finland connected the United Nations in 1955, the OECD in 1969, the European Union in 1995, and the euro zone since its inception in 1999.

Finland was a comparative late arrival to industrialization, remaining a basically agrarian country until the 1950s. Thereafter, economic development was fast. Finland built an widespread welfare state and balanced between the East and the West in global economics and politics. Through the best educational system in Europe, Finland has lately ranked as one of the world's most peaceful, aggressive and inhabitable countries.

The population of Finland is currently about 5,350,000. Finland has a normal populace density of 17 people per square kilometer. Finland's residents have always been concentrated in the southern parts of the country, a trend that became even more pronounced during 20th-century urbanization. The largest cities in Finland are those of the bigger Helsinki metropolitan area – Helsinki, Espoo and Vantaa. Other large cities include Tampere, Turku and Oulu.

Religion

Around 4.2 million (or 78.2% at the end of 2010) adherents are members of the Evangelical Lutheran Church of Finland. The Evangelical Lutheran Church of Finland is one of the biggest Lutheran churches in the world, although its share of the country's population has declined in recent years. The second leading group, accounting for 19.2% of the inhabitants, has no religious association. In recent years, A small minority belong to the Finnish Orthodox Church (1.1%). Other Protestant denominations and the Roman Catholic Church in Finland are considerably smaller, as are the Muslim, Jewish and other non-Christian communities (totaling 1.3%).

Health

Life anticipation is 82 years for women and 75 years for men. There are 307 inhabitants for each doctor. On 18.9% of health care is funded directly by households and 76.6% by taxation. A latest study by The Lancet medical journal found that Finland has the lowest stillbirth rate out of 193 countries, including UK, France and New Zealand. UK was 32 spots behind in the shared 33rd position with Belarus and Estonia. Nigeria and Pakistan had the highest stillbirth rates.

Society

Finnish family life is centered on the nuclear family. Relations with the complete family are often somewhat far-away, and Finnish people do not form politically important clans, tribes or similar structures. According to UNICEF, Finland ranks fourth in the world in child well-being.

Finnish women were as well knowledgeable as their male counterparts, and, in some cases, the number of women studying at the university level. In addition to a growing welfare system, which since World War II had come to give them with considerable support in the area of child-bearing and child-rearing, women had made notable legislative gains that brought them closer to full parity with men.

Cultural

However Finnish written language could be said to be present since Mikael Agricola translated the New Testament into Finnish in the sixteenth century as a result of the Protestant improvement; few remarkable works of literature were written until the nineteenth century, which saw the foundation of a Finnish national Romantic Movement. This encouraged Elias Lönnrot to collect Finnish and Karelian folk poems and place and publish them as Kalevala, the Finnish national epic. The era saw a climb of poets and novelists who wrote in Finnish, remarkably Aleksis Kivi and Eino Leino. Many writers of the national development wrote in Swedish, such as the national poet Johan Ludvig Runeberg and Zachris Topelius.

After Finland became autonomous there was a grow of modernist writers, most famously Finnish speaking Mika Waltari and Swedish speaking Edith Södergran. Frans Eemil Sillanpää was awarded the Nobel Prize in Literature in 1939. The Second World War provoked a return to more national interests in comparison to a more international line of thought, characterized by Väinö Linna. Besides Kalevala and Waltari Swedish speaking Tove Jansson is the most translated Finnish writer. Writing in modern Finland is in a strong state. Popular modern writers include Arto Paasilinna, Ilkka Remes, Kari Hotakainen, Sofi Oksanen and Jari Tervo,

Particular

Information

Population

5,259,250 (July 2011 est.)

Population growth rate

0.075% (2011 est.)

Birth rate

10.37 births/1,000 population (2011 est.)

Death rate

10.24 deaths/1,000 population (July 2011 est.)

Net migration rate

0.62 migrant(s)/1,000 populations (2011 est.)

Urbanization

Urban population: 85% of total population (2010)

rate of urbanization: 0.6% annual rate of change (2010-15 est.)

Sex ratio

At birth: 1.04 male(s)/female

under 15 years: 1.04 male(s)/female

15-64 years: 1.02 male(s)/female

65 years and over: 0.69 male(s)/female

total population: 0.96 male(s)/female (2011 est.)

Infant mortality rate

Total: 3.43 deaths/1,000 live births

male: 3.73 deaths/1,000 live births

female: 3.11 deaths/1,000 live births (2011 est.)

Life expectancy at birth

Total population: 79.27 years

male: 75.79 years

female: 82.89 years (2011 est.)

Total fertility rate

1.73 children born/woman (2011 est.)

Nationality

Finnish

Ethnic groups

Finn 93.4%, Swede 5.6%, Russian 0.5%, Estonian 0.3%, Roma (Gypsy) 0.1%, Sami 0.1% (2006)

Languages

Finnish (official) 91.2%, Swedish (official) 5.5%, other (small Sami- and Russian-speaking minorities) 3.3% (2007)

Literacy

Definition: age 15 and over can read and write

total population: 100%

male: 100%

female: 100% (2000 est.)

School life expectancy (primary to tertiary education)

total: 17 years

male: 16 years

female: 18 years (2008)

Education expenditures

5.9% of GDP (2007

Maternal mortality rate

8 deaths/100,000 live births (2008

Health expenditures

11.7% of GDP (2009)

Physicians density

2.735 physicians/1,000 population (2008

Hospital bed density

6.52 beds/1,000 population (2008)

Obesity - adult prevalence rate

15.7% (2008)

Milestones of the history of statistics in Finland

Sweden - of witch Finland was a component - was the first country in the world to establish a statistical office to produce official statistics. This happened in 1748, and the office was named Tabellverket, Tabulation office. Before that, households were already enumerated for taxation purposes.

1648

the first population registers, kept by the parish priests

1748

the Tabulation Office, Tabellverket, was founded

1749

the first vital statistics in the world were compiled by the Tabulation Office

1865

the provisional Statistical Office of Finland, Statistiska Byrån, was founded

1879

the first Statistical Yearbook of Finland was published

1886

the first course of statistics was held at the University of Helsinki

1917

Finland became independent

1920

the Finnish Statistical Society was founded

1920-22

J. W. Lindeberg published the Central Limit Theorem

1945

the first chair of statistics was created at the University of Helsinki

1948

national accounts were calculated for the first time

1955

Finland joined the UN

1961

Finland became an associate member of the EFTA (full member 1986)

1969

Finland joined the OECD

1975

the interview organization of Statistics Finland was founded

1990

a completely register-based population census was carried out

1995

Finland joined the European Union

1995

the Internet service of Statistics Finland was opened

Recent History

Finland's recent history has been a time of vast change with the transformation from a greatly poor, primarily agricultural society in the 1920s to one of the world's most advanced nations in the space of one lifetime. The late 1990s were dominated by the growth of the Finnish economy and Finland's development as an EU Member State including their successful EU Presidencies in 1999 and 2006.

The fast growth of the 1980s had been suddenly checked by the collapse of the Soviet Union (Finland's single largest trading partner - but on a clearing basis): between 1991 and 1993, Finnish GDP fell by 10%, unemployment quadrupled to 20% and public debt rose to record levels. This encouraged the Finns to refocus the economy towards high technology products aimed at Western Europe - a decision that has now paid off substantially.

The collapse of the Soviet Union permitted Finland to step out of its political shadow. Finland saw its interest’s best represented within the European Union and became a full member in 1995. Membership of the EU did not change extensive position de-facto promise to its non-aligned status. The Maastricht Treaty did not establish a military alliance and allowed individual countries to continue with their own defense provision. Finland considered these provisions to be compatible with non-aligned status.

The government, (led by Paavo Lipponen 1999 - 2003) pursued economic policies, to meet the Maastricht Criteria for EMU. This included reining in public expenditure and cutting unemployment benefits despite strong union opponent. Finland was among the first wave of EU member states to accept the euro. This followed a public debate that centered on Finland’s susceptibility to asymmetric shocks (such as the fall down of the Russian Ruble in 1998). As a result of the debate, Finland developed a unique "buffer fund" solution under which funds are set aside against possible future hard times. Finland became the only Nordic EU member to accept the Euro as the national currency.

The current Finnish Government has recognized a number of areas that could be addressed over the coming years in order to improve Finland's international competitiveness:

further alteration of the world leading education system focusing on universities and adult learning

more resources into Research and Development: target of +4% of GDP

addressing the growing demographic shortage

measures to attract more foreign funds

Prioritizing infrastructure investment on links crucial for international competitiveness.

1.2 Economic overview of the Finland

Finland is strongly competitive in manufacturing - largely the wood, metals, engineering, telecommunications, and electronics industries. Finland excels in technologically advanced exports such as mobile phones. Apart from for timber and a number of natural resources, Finland depends on imports of raw materials, energy, and some machinery for manufactured goods. Forestry provides a secondary occupation for the rural population. Finland had been one of the best performing economies inside the EU in recent years and its banks and financial markets avoided the worst of global financial crisis. Longer-term, Finland must address a quickly aging population and declining efficiency that pressure competitiveness, economic sustainability, and economic growth.

ECONOMIC INDICATORS

Population (2009)

5,351,427

Unemployment rate (2009)

8,2%

GDP at current prices (euro) (2009)

171,3

GDP per capita (euro) (2009)

32 088

GDP annual growth (forecast for 2010)

1.1%

Inflation rate (2009)

1.6%

Total exports (million euro) (2009)

45,063

Total imports (million euro) (2009)

43,655

Internet access (2009)

78%

C:\Users\AIM\Desktop\finland ecomomic.jpg

Finland GDP Growth Rate

The Gross Domestic Product (GDP) in Finland expanded 0.9 percent in the third quarter of 2011 over the previous quarter. Historically, from 1975 until 2011, Finland's average quarterly GDP Growth was 0.59 percent attainment and historical high of 5.00 percent in September of 1980 and a record low of -5.50 percent in March of 2009. Finland has an extremely industrialized, mainly free-market financial system. Its key economic sector is manufacturing - primarily the wood, metals, engineering, telecommunications, and electronics industries. Trade is essential, with exports equaling almost one-third of the GDP. This page includes: Finland GDP Growth Rate chart, historical data, forecasts and news. Data is also available for Finland GDP Annual Growth Rate, which measures growth over a full economic year.

Chart-1

Inflation Finland 2011 (CPI)

The inflation chart and table below feature an outline of the Finnish inflation in 2011. The inflation rate is based upon the consumer price index (CPI). The CPI inflation rates in the table are presented both on a monthly basis (compared to the month before) as well as on a yearly basis (compared to the same month the year before).

The average inflation of Finland in 2011: 3.42 %

1.3 Overview of Industrial Trade and Commerce

Finland’s economic achievement requires the further removal of barriers to export and investment and an open import policy that promotes rivalry. The key challenges include customs duties and non-tariff barriers to trade and trade-distorting measures that are still common in many markets.

Industries:

Metal & its products, electronics, machinery and scientific instruments, shipbuilding, pulp and paper, foodstuffs, chemicals, textiles, clothing

Industrial production growth rate:

-16.3% (2009 EST.)

Country comparison to the world: 159

Oil - production:

8,718 bbl/day (2009 EST.)

Country comparison to the world: 86

Natural gas - production:

NA (2008 EST.)

Current account balance:

$3.444 billion (2009 EST.)

Country comparison to the world: 31

$8.206 billion (2008 EST.)

Debt - external:

$364.9 billion (30 June 2009)

country comparison to the world: 22

$339.5 billion (31 December 2008)

Stock of direct foreign investment - at home:

$85.71 billion (31 December 2009 EST.)

Country comparison to the world: 36

$83.14 billion (31 December 2008 EST.)

Stock of direct foreign investment - abroad:

$118.7 billion (31 December 2009 EST.)

Country comparison to the world: 23

$116.1 billion (31 December 2008 EST.)

Exchange rates:

EUR/ USD: 0.7338 (2009), 0.6827 (2008), 0.7345 (2007), 0.7964 (2006), 0.8041 (2005)

Taxation:

Corporation tax (26%) is standardized for all types of corporate income, including sales profits, interest income, dividends, royalties and rental income; value-added tax (VAT) is charged at 23% on most goods and services. Reduced tax rate of 13% is practical to the sale of food and animal feed and to serving of foods and reduced rate of 9% to cinema performances, physical exercise services, books, pharmaceuticals, passenger transport services, accommodation services etc.

1.4 Overview of Economic Sectors of Finland

Finland has a highly developed, mixed economy with a per capita production equal to that of other western economy for example France, Germany, Sweden or the United Kingdom. The major sector of the economy is services at 65.7 percent, followed by manufacturing and refining at 31.4 percent. Prime production is 2.9 percent. In 2000, the balance between Finland's financial sectors was consistent with those of mainly OECD nations, with agriculture contributing 5 percent to the GDP, industry 32 percent, and services 63 percent.

Agricultural

Finland's weather and soils make growing crops a scrupulous challenge. The country lies between 60° and 70° north latitude - as far north as Alaska - and has severe winters and relatively short growing seasons that are sometimes broken up by frosts. However, because the Gulf Stream and the North Atlantic Drift Current moderate the climate, Finland contain half of the world's arable land north of 60° north latitude. Until the late nineteenth century, Finland's separation required with the purpose of most farmers concentrate on producing grains to meet the country's basic food requirements.

Forestry

Forests play a key role in the country's economy, making it one of the world's important wood producers and providing raw materials at competitive prices for the crucial wood-processing industries. As in agriculture, the government has long played an important role in forestry, regulating tree cutting, sponsor technical improvements, and establish long-term plans to make sure that the country's forests continue to supply the wood-processing industries.

Industries

From the 1990s, Finnish industry, which for centuries had relied on the country's huge forests, became dominated by to a larger extent by electronics and services, as globalization lead to a decline of more traditional industries.

Outsourcing resulted in more manufacturing being transferred overseas, with Finnish-based manufacturing focusing to a better extent on R&D and hi-tech electronics.

As per above graph, the industry sector contribute much more employment.

Electronics

The Finnish electronics and electro-technics industry relies on heavy investment in R&D, and has been accelerate by the liberalization of global markets. Electrical engineering started in the late 19th century with generators and electric motors built by Gottfried Stromberg, now part of the ABB Group. Other Finnish companies – such as Instruct, Vaisala and Neles succeed in areas such as industrial mechanization, health and meteorological technology. Nokia is a world chief in mobile telecommunications.

Metals, engineering and manufacturing

Finland has a large quantity of natural resources, but many big mines have closed down, and most resources are now imported. Therefore, companies now tend to focus on high added-value processing of metals. The exports include the production steel, copper, zinc and nickel, and finished products such as steel roofing and cladding, welded steel pipes, copper pipe and coated sheets. Outokumpu is known for developing the flash smelting procedure for copper production and stainless steel. The world's biggest cruise ships are built in Finland; also, the Finnish company Wärtsilä produces the world's major diesel engines. Additionally, Finland also produces train store. The manufacturing business is a major employer of about 400,000 people

Chemical industry

The chemical business is one of the Finland's major industrial sectors with its roots in tar making in the 17th century. It produces a huge variety of products for the use of other industrial sectors, particularly for forestry and agriculture. Additionally, it produces plastics, chemicals, paints, oil products, pharmaceuticals, environmental products, Biotech products and petrochemicals. Biotechnology is regard as one of the most hopeful high-tech sectors in Finland and it is rising rapidly.

Pulp and paper industry

Forest products have been the key export industry in the earlier period, but diversification and expansion of the economy has concentrated its share. In the 1970s, the pulp and paper business accounted for half of Finnish exports. Besides, several of large international corporations in this business are based in Finland. Stora Enso and UPM were positioned 1 and 3 by output in the world, both producing more than ten million tons. M-real and Myllykoski also come into view on the top 100 list.

Energy industry

Finland's energy supply is divided as follows: nuclear power - 26%, net imports - 20%, hydroelectric power - 16%, combined production district heat - 18%, combined production industry - 13%, condensing power - 6%. One half of all the energy consumed in Finland goes to industry, one fifth to heating buildings and one fifth to transport. Lacking original fossil fuel resources, Finland has been a power importer. This might vary in the future since Finland is presently building its fifth and approved the building permits for its sixth and seventh reactors.

As far as employment is concerned, the following figures indicate the employment contribution of the various sectors:

Agriculture and forestry- 4.5%

Industry-18.2%

Construction- 7.3%

Commerce-15.9%

Finance, insurance, and business services- 14.5%

Transport and communications- 6.9%

Public services- 32.7%

1.5 Overview of Business and Trade at International Level

Finland has a greatly modern, free-market economy with a per capita output like to that of other western economies such as France, Germany, Sweden, or the U.K. The largest sector of the economy is services (64.9%), followed by manufacturing and refining (32.4%). Primary production is at 2.7%. In 2010 the Finnish economy improved from the 2009 financial crisis better than most forecasts predict, and showed a broad-based growth of 3.1%. The forecast for 2011 predicts an export-driven annual growth of 3.6%. GDP growth in 2012 is expected to average 2.7%.

Foreign Trade in Figures:

Foreign Trade Indicators

2006

2007

2008

2009

2010

Imports of Goods (million USD)

69,375

81,704

91,781

60,890

68,095

Exports of Goods (million USD)

77,206

90,025

96,456

62,855

69,264

Imports of Services (million USD)

18,571

22,613

30,377

25,636

22,864

Exports of Services (million USD)

17,388

23,167

31,772

27,482

24,750

Trade by regions in 2010, share %

Regions

Exports

Imports

EU

55.6

56.4

Euro area

31.0

33.2

External trade

44.4

43.6

Developing countries

16.7

16.1

Exports - commodities:

electrical and optical equipment, machinery, transport equipment, paper and pulp, chemicals, basic metals; timber

Exports - partners:

Germany 10.32%, Sweden 9.79%, Russia 9%, US 7.85%, Netherlands 5.9%, UK 5.24%, China 4.1%

Imports - commodities:

harvest, petroleum and its product, chemicals, transport equipment, iron and steel, technology, textile yarn and fabrics, grains

Imports - partners:

Russia 16.28%, Germany 15.76%, Sweden 14.65%, Netherlands 6.99%, China 5.29%,

Multilateral Relations

Finnish foreign policy emphasizes its contribution in multiparty organizations. Finland joined the United Nations in 1955 and the EU in 1995. As noted, the country also is an associate of the North Atlantic Treaty Organization's (NATO) Partnership for Peace as well as a member in the Euro-Atlantic Partnership Council. As a NATO partner, Finland had 178 military troop and 39 civil disaster management experts in Afghanistan as of November 2010, helping with a Swedish-led Provincial Reconstruction Team in the province of Mazar-e-Sharif and functioning to generate a secure environment for rebuilding in northern Afghanistan.

1.6 Present Trade Relations and Business Volume of Different Product with India

Finland and India have customarily enjoyed warm and pleasant relations. In the recent past, there has been a perceptible increase in the level of engagement, both political and commercial, which saw the exchange of the visit of the Prime Ministers of the two countries during the same calendar year (2006).This was followed by a visit by the President of Finland Mrs. Tarja Halonen in January 2007 and February 2009 and Finnish Prime Minister Mr. Matti Vanhanen visited India in February 2008 and February 2010, to attend the Delhi Sustainable Development Summit organized by TERI. In 2011 there are frequent exchanges of visits from both counties. Finland sees in India a large market for its products and a favorable investment destination for its high technology industries whereas India views Finland as an important associate of the EU and a repository of modern technology.

India-Finland Trade:

Indo-Finnish economic and trade relations have grown steadily in recent years with joint trade reaching Euro 748 million in 2008, but declining a little bit in 2009 due to global slowdown.

Following are figures for the past few years:

Value: € million

2007

2008

2009

2010

Exports from India to Finland

191.52

219.49

230.44

349

Imports by India from Finland

453.56

529.24

450.24

599

Total

645.08

748.73

680.68

948

Export items

Export items from India have been garments, made ups and textiles accounting for about a third of the exports. Other major items include metals, iron and steel, chemicals, petroleum products and leather.

Import items

Main imports from Finland include telecommunication tools, power generate equipment, electric and other equipment.

Investment:

On the investments side, large Finnish companies like Nokia, Kone elevators, Wartsila and Elcoteq have set up manufacturing facilities in India. Over 80 Finnish companies now have operation in India and 30 Indian companies, mostly in the software and consultancy segment are running in Finland.

Tourism:

Favored Finnish visitor destinations in India are Goa and Kerala, though other destinations are also becoming increasingly popular. With the commencement of direct Finnair flights from Helsinki to New Delhi in 2006 the number of Finnish guests has increased. Finland is among the five countries for which visa on arrival scheme has been made applicable 1st January, 2010. During the winter months (October-March) Finnier operates two to three charter flights a week to Goa, depending on require.

1.7 PESTEL Analysis

1)

Political factors

constancy of government, social policy, trade

regulations, tax policies and entry mode regulations

2)

Economic factors

Inflation, interest rates, exchange rates,

3)

Social factors

healthiness, growth rate, age allotment, career attitudes and emphasis on protection

4)

Technological factors

R&D activity, automation, technology incentive and rate of technological transform

5)

Environmental factors

attitude towards the atmosphere ( in terms of demand and supply for product, fumes or conserving the nature), environment, climate

6)

Legal factors

Employ rules, competitive policy, product rule, and fitness and security system.

PESTEL analysis for Finland

Outlined below is the PESTEL analysis for Finland as a whole.

Political Factors

Constitutional System

Finland tied the European Union in 1995 and adopts the euro as its exchange in 1999. The country is sparsely occupied, with about one-fourth of its land mass above the Arctic Circle, but boasts a modern, competitive, and transparent economy with vibrant in sequence and interactions technology sector.

Stability of Government.

. The nation remains a world leader in industry independence, trade independence, assets rights, and freedom from fraud. Private enterprise continues to blossom and encourage improvement in an efficient regulatory and lawful environment.

Business Freedom

The generally liberty to start, operate, and close a business is strongly protected under Finland’s regulatory environment. Starting a business takes an average of 14 days, compared to the world average of 35 days. Obtaining a trade license require much less than the world average of 18 procedures and 218 days.

Economic Factors

Economic Freedom Score - 73.78

finland.jpg

Tariff Rate

1.29

Income Tax Rate

30.49

Corporate Tax Rate

26.0

GDP (billion)

188.21

GDP per Capita

35427

Tax Burden % GDP

43.10

Government Expenditure % GDP

47.31

Population (billions)

5.32

Economic Freedom vs. World Average

Fiscal Freedom

Finland has reasonable tax rates but a comparatively high level of overall taxation. The peak income tax rate is 30.49 percent, with municipal rates between 16.5 percent and 20 percent.

Ii Monitory Freedom

Finland uses the euro as its currency. Between 2006 and 2008, Finland’s weighted average annual rate of increase was 3.10 %. As a participant in the EU’s Common farming Policy, the government subsidizes farming production, distorting the price of farming products.

Iii Investment Freedom

Finland is open to foreign direct investment. Certain acquisition of huge companies may need follow-up clearance from the Ministry of Trade and Industry. Non–European Economic Area investor must apply for a license to invest in safety, electrical contracting, alcohol, telecommunications, aviation, and restaurant. Regulation is relatively transparent and efficient.

Social Factors

Changes in lifestyles and trends

Doesn’t have many changes in lifestyle and trend since Finland is count as one of the modern countries.

Educational levels

The education levels in Finland are extremely fine where the literacy is 100% for both male and female. The normal school life expectancy is 17 years.

Labor Freedom Ranks

Burdensome labor market regulations hamper employment opportunity and efficiency growth. The non-salary cost of employ a worker is high, and dismissing a worker can be expensive. Limits on work hours are rigid.

Freedom of corruption

Fraud is perceived as almost nonexistent. Finland is joined for 5th place out of 179 countries in Transparency International’s fraud perception Index for 2008. Finland is a signatory to the OECD Anti-Bribery Conference.

4) Technological Factors

Science and Technology

Technology and innovation rule measures look for to put in to enhancing the competitiveness of Finnish trade and the well-being of people, with the plan of making Finland capable of providing companies with a top-flight innovation atmosphere internationally, which also attract foreign R&D investments.

Research and Development

R&D funding will be increased to 4 % of Finland’s gross national product. This subsidy will be allocated to center of strategic excellence in sector that is essential to the growth of the national country, society and citizens’ safety.

5) Environmental Factors

Climate

Cold pleasant and potentially subarctic but moderately mild because of moderating influence of the North Atlantic Current, Baltic Sea, and more than 60,000 lakes.

Current issues

Air pollution from industrialized and power plants contributing to acid rain, water pollution from industrialized waste, farming chemical; habitat loss threatens wildlife populations.

Legal Factors

Employment Regulations

healthiness and security Regulations

Trade and Regulations Standards

1.8 Conclusion

Finland is a democracy which became free in 1917. The head of state is the president. Ultimate political power is vested in the 200-member unicameral parliament. The population of Finland today is a small over 5 million.

Finland is powerfully competitive in built-up - principally the wood, metals, engineering, telecommunications, and electronics industry. Finland excels in high-tech exports such as mobile phones. Apart from timber and several minerals, Finland depends on imports of raw materials, energy, and some machinery for manufactured goods.

Overall the present position of industry is too superior of Finland country, major they are in manufacturing of nokia that is telecom division. Metal and metal products, electronics, equipment and technical instrument, shipbuilding, pulp and document, foodstuffs, chemicals, textile, garments extra they are in agriculture and oil engineering also.

Finland has a greatly industrialized, mainly free-market economy, with per capita output roughly that of the UK, France, Germany, and Italy. Its key economic segment is manufacturing—principally the wood, metals, engineering, telecommunications, and electronics industries. Deal is important, with the export of goods representing about 30 percent of GDP. Except for timber and several minerals, Finland depends on imports of raw materials, power, and some machinery for manufactured goods. Because of the climate, farming growth is inadequate to maintaining self-sufficiency in basic products. Forestry, a significant export earner, provides a secondary profession for the rural population. The economy has recovered from the depression of 1990-92, which had been cause by economic overheating, miserable foreign markets, and the dismantling of the barter system between Finland and the earlier Soviet Union. A comparatively high unemployment rate (estimated at 7.7% in 2005) has been persistent but recent indicators show that the situation may be improving.

Finland and India have customarily enjoyed warm and pleasant relations. In the recent past, there has been a perceptible increase in the level of engagement, both political and commercial, which saw the exchange of the visit of the Prime Ministers of the two countries during the same calendar year (2006).

For importing tariff is more imposing, but better fact is that major of its nokia products are used in India. And mostly in Gujarat.

As the taxation duty is levied high, mostly India go for joint venture with Finland companies.

Our major interest is in country’s growth, and with duly research we found that Finland is the most excellent for our GCR project.