Influence become one of the wealthiest as well

 

Influence of globalization

Assignment 1

 

 

 

International Business

ADMN
296

 

 

 

 

 

 

 

 

Submitted to:                                                                                    Submitted
by:

Danny Hu                                                                                           Karandeep
Singh

                                                                                                            196644

 

Introduction

Iceland is always an
incredible place to visit or even to know about. It is called a land of fire
and ice. I found this much relevant to research on Iceland to make my
assignment more interesting. It is one of the peaceful country and become one
of the wealthiest as well as developed nation within few decades. People
consider it as an easiest place to live and I believe it has wider scope for
any kind of business from given options (nations) that is why I select Iceland
to analyze for my assignment.

 

Geography

Iceland is one of the
last place settled by humans on the Earth. It is a Nordic Iceland country of
Europe located in the North Atlantic Ocean. Iceland covers a total area of
39,769 square miles (103,001 km²) (Geography of Iceland, 2018). It is so beautiful country landscaped by fields, green meadows,
geysers, hot springs and volcanoes along with glaciers on the other side that
is surprisingly different to see such different variations in same country.
There are total 325,671(Demographics of Iceland, 2018) people
residing in Iceland out of which 60% of population lives in Reykjavik, the
capital city. There are no forests in Iceland. Finland, Denmark, Greenland,
Sweden and Norway are neighboring countries.

 

Culture

Iceland culture is
classic and ancient. Even the Icelandic language is thousands of years old.
There are no surnames or last names but if you are using a first name that is
not previously used, then it must be authorized by Icelandic naming committee.
There is high degree of gender equality. Women actively participate in jobs
either it is just bread earning or politics. Krona is the name of currency used
in Iceland. Outlook of residents of Iceland resembles Nordic culture. Yet, an
important element is traditional cuisine and their sweets. They are respectful
toward their culture and language. People are friendly and polite. A firm
handshake and punctuality can impress them in first meeting. All should be
treated equally as they follow flat hierarchy in business where designations
are a part of professional life, otherwise everybody is treated equally despite
of gender or professions.

 

Government System

Iceland has the
oldest parliament in Europe. It is a parliamentary constitutional republic as
many other small countries where President is the head and executive powers are
in the hands of legal authorities. Iceland known for world’s oldest
parliamentary democracy. Political system is smooth despite of having multi
parties. Health care, education and safety system is as good as these are the
priorities of legal authorities existing there. Law and order maintained, as violent
crimes are negligible in numbers. Even police force do not carry guns with them.
(Type of government, 2017).

 

GDP/GNP/Exports/Imports

Gross domestic
product and Gross National product is 20.05 billion USD and 17.54 billion PPP
respectively. The value of Export and Import is $3.215 and $4.582 respectively.
Iceland is self-sufficient in livestock, dairy, meat, eggs and fishery. Chocolate,
milk, sugar, potatoes, fishes, sheep’s, aluminum geothermal system are major
produces along with the welcoming environment. Iceland export agriculture
products, art and craft is also famous and exported. Beautiful art pieces made
by Seashells or stones are famous all over the world. (Economy of Iceland,
2017).

 

Business Partners

Japan and USA are
major business partners of Iceland.

 

 

Other

Taxes are relatively
low in Iceland as compared to other nations. Living standards are highest
there. Until Iceland relied on fishing and subsistence agriculture, it was a
poorest nation but gone are those days as after 20th century, Industrialization
of fisheries contributed toward prosperity and now Iceland is one of the most
developed and wealthiest nation of the world. Most interesting fact that can
raise the eyebrows of everyone is that, Iceland does not have any army. It is
most peaceful nation.

 

Benefits of Globalization:

?    
Globalization can aid trade and
relations among countries.

?    
It can boost up other industries
in the nation other than agriculture and tourism.

?    
Globalization will help to
maintain financial stability.

?    
It will encourage economic growth,
creates new jobs, and makes companies more competitive.

?    
Sharing of common values and
positive attitudes on social basis as Iceland is so inspirational for every
other developing economy in terms of social as well as economic growth.

?    
Globalization will lead to a
reform called ‘consumer activism’.

 

Problems of Globalization:

?    
Globalization in Iceland can
damage the overall beauty a lot more than without it.

?    
Iceland is so peaceful but
globalization may cause trouble, as there is an exception that there could be
crime, hoarding, smuggling etc.

?    
Unfair working conditions or
social injustice of Multinational Corporation can create a mismanagement.
(Gobel, 2018).

 

Business in Iceland

Iceland has a vast
degree of knowledge big resources like people (cheap labor), input for food industry
(agriculture goods) and tourist (potential customers). I want to invest in
opening a franchise of McDonald in the capital city of Iceland. McDonald is all
time favorite of foreigners. Good services, easy accessibility of food,
offering of different varieties along with good return on investment to the
investors are few factors that penetrate me to think about it. There were McDonald
in Iceland few decades ago but due to recession and corruption of some banks
(bank corrupts) were the reasons for the termination of the McDonalds. Now
Iceland is a developed nation and situated in the middle of Europe and North
America that is perfect geographical location for trading or nationwide
dealing. Moreover it has been said that more the risk more the profit. English
is widely spoken there so language barrier is not an issue. The basic reason
why I want to open my business in Iceland is that it has all the potential
resources, liberalization, creativity and all the positive conditions for the
business like entrepreneurship, relevant resources and understanding for demand
and supply. Although globalization considered as, hindrance to this nation but
that is the actual challenge how to make the adverse situation fruitful.

References

Geography of Iceland. (2018, January 17). Retrieved from https://en.wikipedia.org/wiki/Geography_of_Iceland

Demographics of Iceland. (2018, January 22). Retrieved from https://en.wikipedia.org/wiki/Demographics_of_Iceland

Type of government does Iceland have. (2017, August 1). Retrieved from https://www.worldatlas.com/articles/what-type-of-government-does-iceland-have.html

Economy of Iceland. (2017, December 21). Retrieved from https://en.wikipedia.org/wiki/Economy_of_Iceland

Gobel, R. (2018). Iceland’s Near Collapse:
What Can We Learn? Retrieved from https://www.investopedia.com/articles/economics/09/iceland-bankruptcy.asp