ASSIGNMENT ON DENMARK GLOBALISATION SUBMITTED TO: RAJENDRA KUMAR SUBKJECT: C.C.C.B.

SUBMITTED BY: MD SHAKHWAT HOSSAIN ID : L0580RORO1010

CHANGE AND CONTINUITY IN CONTEMPORARY BUSINESS Executive Summary: kingdom of Denmark little in shape, but often punched above its power globally. They got the fame because of their modern economical theory and widespread welfare systems, while sometimes face the difficulties from European Union. Danes show their weight by rejecting the euro as a currency. They are using their own currency CRON. It was a perfect homogenous country in the mid 1970s. They got criticism from the world because of their strong immigration policies. Country Background: 43,089 sq km of land with 400 of islands is covered in Denmark. They have the strong agricultural sector with the easy access of sea. By using the highest value of few natural resources they become wealthier and they also got the large energy transporting business as well as the sea wind technology. Because of keeping green economy govt reduce taxes on income and increase taxes on pollution. With the same energy consumption rate the country economy has increased by 75% in last 25 years. Strict immigration policy consists of easy to work and hard to live. They discouraging their traditional unemployment benefit and inspiring to come back to work. INITIAL INFLUENCES ON DENMARK After entering the huge number of immigrants from developing country it loose their great fame of perfect homogenous country. Because of this demographic shifting Danes govt divided people into two types of taxation policy. By the religious discrimination towards muslim they got worldwide criticism and their diverse society faces the loss of democratic significance. They stop their welfare policy which was the main attraction for the developing country people and Danes were concerned about the stability of this issue in front of world economic pressure. To decrease unemployment rate govt now inspiring the young generation to came back work again. Their academics and investment analysis worried about the low demand of unskilled worker and it can proceeded to delocalisation their production to cheap labour country Because of increasing unskilled worker in Europe it commits tension for the welfare system and low wage rate at work.

In 1993 their president Rasmussen called from the social state to minimise cost by increase tax and cut spending dramatically. They decided to cut the unemployment benefit and this approach come to known as a flexicurity seemed to work. The equivalence level effect the person who entitled to poor and the situation is not created on the scientific basis. Public service really plays a significance role to encourage the disable people to work or participate in social programme and education. The rural are and urban area people will get the different types of benefits and actually this one base one the rent, communication cost. Public workforce internal growth to lead in new of prosperity with work engagement with agriculture, fishing and light industry sector. In a short time Denmark regained internal flexibility by rely on external trade and like the American and European grew up Denmark open their border for building international trade. THE CHALLENGES OF GLOBALISATION: Globalisation is a process of worldwide intensifying the interconnection of the economic activities that both has ideological and features with factuality. Discursive process firmly based on the ideological side of the globalisation. It discourses on competitiveness, comparative advantages and investing friendly conditions. In the European union specific Danish consideration can be defined as: Globalisations diminish the comparative effectiveness of country economy and because of this some macro economical investments have now disappeared. World market make it hard to operate the effective rate of money supply it will make a huge impact on national economy. One of the most important thing is the danis currency and the European currency not going always same way and always stay on the vulnerable positions. So its quite hard for the capital movements to one country to another. And because of the rejection of euro to take as their own currency the European Union always try to push danis economy down. The raising importances of the European supranational body reduce the ability to work effectively with macroeconomic theory. As the material industry policy got the less effectiveness to transfer the ability of production undermine to support the national champions. Capital movement and free trading policy enlarging the international rivalry and put the high pressure on OCED member country because of the restricted matters. The European economy going to impose new restriction may now or near future. For removing barriers competitiveness actually has no impact. Single country need to relocate the resources because of the shifting conditions of international market. In Denmark the upgrade work for its industry partially given its specific low and high tech production sectors. The domestic economical adjustment entitled to shift resources from the declining of the expanding sectors. The result is raising needs for the recompense to improve the process of adjusting. At the same moment requirements for the compensation seems

to be diminishing. Because of the welfare policy and rejoining in employment reduce the poverty line in the Keynesian welfare state model (MISHRA-1999). The second line is to cut the tax on the income instead of this they increased the taxes on pollution. New political entrance can reduce the social security contribution. The lack of normal social policy its add the additional barriers and limitations as well. it would be hard to guess the direction of the transforming and the crisis of our times but not to referring to the ideological changes. For more than an era the improving loss of legitimacy of power policy has now been accompanied by the ideological crisis. In this search in few past years lots of symptoms of thought have been reviewed by the reproduce of liberal either as the challenge of domination of legitimacy. The main characteristics of is not the identification of ideologies as much emphasising of the need for a new ideological for social action.

EFFECTIVENESS OF DENMARK RESPONSE: ECONOMIC POWER: The capability of Denmark to make sure the prosperity by means of the macro-economic policies has weakened the globalisation pressures. Denmark was the first country no to regulate its economical marketplace and the capital movements. Most of the changes happen in 1980 decades and that time Denmark was able to regulate the credit and its interests charge as well. Though this materials has never been significant in Denmark. Actually they were strained not to regulate and liberalize in the early 1990s. Denmark has not accepts the EURO and it is not a division of European monetary Union. While the currency and the economic condition is better than the European Union. The interests rate is slightly high than the union member, which involves the danger of devaluations. Denmark also dont follow the result creation course by the European central bank and still in a vulnerable position to tentative harass. Denmark is strained to obey the rule of EMU. And Denmark still not faced any crisis like before Britain and Italy faced as the early 1990. Denmark unemployment rate was higher than the Scandinavia countries and it could be regime in periodic of international growth. Even recent improvements indicate that still it has so many supports to macroeconomic policies in unemployment sector. In 1993-1994 the government kick-started the economy with a smart mix of policies that successfully used within a fixed exchange in the period of the international growth. Bye using the combination of with these measures and innovative programme ( torfigue 1991) Denmark achieved the dramatic success in unemployment sector. Now the recent decade of globalisation policies of macro economy not only gain the success of economic growth and low unemployment. For the most important in the maiden context is to develop the skill and the standard of the production sector, it sector, human capitalism and the social capital. What is the centre of the point economic policy, labour market place, education and training sector and other economical issue are the key element to improve countries economic performance. Some people controversy that in the larger country can resemble the small ones in the events of policy effectiveness. Another thing is policies of structural sector have got the significance and Denmark seems to develop well in the particular area of economic policy.

WORLD-WIDE TRADING: generally the worldwide reorganisation on the business industry has not turned in to losses for the developed countries. Instead of it they rebound the structural differences within and between the economic specialisation. Danis Company will not seem to suffer as the low cost asian countries going to take the market place by using their cheap labour cost. Already asian market try take over the trade industry because they can offer the European market with lost cost materials. The fundamental effect from the competition with the low cost country occurred the high pattern technological western world. Danis export sector are enriched with the high volume of food sector and a lesser degree of furniture and pharmaceuticals. They got the strong value in wireless communication and biomedical electronics sectors and electromechanical industry as well. With it Denmark can cope with the developed countries growth rate. The experienced based industry knowledge going to spread over the boundaries of one country. Danis society is based on the powerful cohesion and the firm has the advantages of high stock of capital with multivolume associations, social network and high value of mutual trust. This is not just reduces the inter farm rivalry but also adaptation, gathering knowledge and united became the organisations. One of the danis major rivalry assets is defined as localised learning depends on the sharing trust. Another thing is in Denmark they got a low volume of direct international investments and they also seem not very interested about investing in the other country as well. The low investment in foreign country indicates that the industry growing in nor so well. Their knowledge based systems are not huge and their experienced based system is not capable to cope with this situation. But last two decades a foreign investment in Denmark has increased and their fdi percentage is also increased and the gdp rate is increased with the double value, but this increase is based on the low overall level. The limited volume of internationalisation may affect on rivalry pressure. But some sometimes it may cause some advantages as well. To sum up it looks little doesnt necessary create a problem in the world economy. Danis sme are normally low in technology and would look like prime candidates in the brand new knowledge based economy.

SOCIAL POLICIES: in the last two decades most of countries cut their social expenses, benefit level, eligibility rules. Despite the public expenditure for the social value as a share of G D P are not reject among the 1980-1995. Most of the European country faces it hard to apply the main cuts in the social area because of prevalent region articulated in electoral voting behaviour. (PIERSON 1996, Mishra 1998). The confronts of the globalisation therefore social expenditure as a percentage of GDP have suddenly enlarged. (SWANK 2002: table content). It seems that there is no race on the bottom, and has coverage among countries in the split of the taxes and social security contributes with the homogenous forces. (scarf 2000). Much evidence looks to identify that high level of benefit expenditure and vat are not compatible with the financial growth in the context of globalisation requires the continues efforts and skill up gradation. Instead countries with the strong welfare facilities got the high value of social assets and powerful social may need to precondition for accelerate the growth smoothly. There appears to be no co-relation between the employment and the taxes but has a huge impact on the domestic organisation.

Denmark has the three industrial arrangements to clarify why high tax rate do not harm employment (SCARF 2000: P-26). Firstly the industry benefits relies initially on income tax, instead of social tax security and other employer performance as well to finance its welfare state, secondly there is a high job security and the third one is strong collective decentralisation bargaining. These three industrial arrangements diminish costs, increase the flexibility and shows adaptability to community and other selected sector. The most significance matter to reduce the expenses are activating the programme and company reforms of institutions consisted with the welfare state. In the middle of 1990 the current system of passive aids was submitted to the activation programme. This planning requires to active job searching. Denmark voters are highly in fond of maintain the welfare state. The best designs in perhaps the fact that currently rightwing govt. is strictly done to not only maintaining but also enhancing the cost for health, pension and education. The liberal party lost the last two election because of the threat of welfare programme. They were subsequently success in the election because it was able to show itself as the dominant defender of welfare state. Welfare and the taxes are not essentially hamper the effective process of selection and recruitment and updated to competitive advantages and Denmark has normally been succeed in such efforts. In case of ineffective attempts to rebuild and update, pressure towards welfare retrenchment being manifest. In addition eu harmonization and tax cuts measures elsewhere have initiated a plan of provide tax cuts in order to define the risks of delocalisation of firms. Vat and excise tax were reduced as a result of European Union relations. For instance, the removal of the main two days limit on customer goods from eu countries has forced the Danish govt. to lower the tax. Further tax controversy with eu is expected and it loos clear that this can diminish revenues available to Danish welfare state. On the expenditure side govt are try to diminish costs through each measures as common reduction in worldwide programmes High eligibility criterion and pedals Testing ability Patterns to privatized welfare system Shift to employment simulating measure and workfare Brand new formulation of govt in public sector.
In Denmark there was few steps to diminish recompense levels and to initiate higher eligibility criterion and manage sick and unemployed. That was unsuccessful with the exception of that elements correlated to the community democrat workforces in 1990. Introduction of testing means was normally not considered an opinion because of its connected administrative costs. Efforts to diminish unemployment such as home service facility were introduced. A new labour market welfare arrangement introduces a fully funded welfare scheme but that was an attempt to improve welfare instead of reduce cost and actually in the mean time the basic pay as you pension plan was improved. Also some plan for the students and for families who got the children were increased considerably (BANNER & VAD 2000: 450). The common image is not one of the cost cuts instead of next expansion. To figure up Denmark has very poor amount welfare cutback in the shape of cuts in entitlements and level of recompense. In fact a social democratic welfare form of workfare was recognised and

the performance of existing welfare state institutions changed considerably in efforts to raise efficiency.

IDEOLOGICAL CHANGES: The pressure of neo liberal politics and ideology has ruled the globalisation. Organisation likes OCED and IMF advocate neo brands of competitiveness and flexibility. The similarity is its true for the global organisations as well as main corporate and the govt of usa and other nation and the EU has been only a few extent can inject ameliorating influences assist with its social market and Christian communist ideologies. Denmark have been highly encouraged by worl-wide globalisation discourse. Yet its own politics has distanced Danish Taste. Danish govt normally welcome and embrace globalisation with no reservation or poor reservation. By the removal of barriers and increasing global trade are seen on critical for rising expansion and small benefit open the Denmark financial system. In Denmark a common welfare state is achieved as totally able with a strong, competitive economy. While the global character social benefits , higher education and the training for everyone and well improved communications is set to make easy and make stronger the process of regular learning, reorganisation and technical upgrading hard to success to rebuild efforts. In the current year the Danish peoples party has got the huge voter support by position them self perfectly as the defender of the normal person against the expenditure of globalisation. In addition to contrasting the EU, the gathering represent among the Danes public resulting partially from a conception that the country going to downgrade its welfare cost in order to benefit asylum seeker and the expenditure of social programmes for unemployed immigrants and refugees. Its true that the well condition for Danish welfare and crisis economy of a homogeneous population are endangered. It looks passionate that the political party assist with the cost of globalisation put danis politician in protective posture with small room for the working initiatives would be influence the character of Denmark ongoing sociological changing. It represents an uneasy compromise towards immigration and passive support for the improvements in popular welfare tradition and commitment of tax cuts. These compromise actions dont put Denmark govt too much to shrinking with the work-force in a period of expanding demographic burdens. Yet even the current condition seems to particularly awful they are not normally hazard connected with current government. They reflect instead of entrenched supporting realities that no Danish. Administration can overlook in the prospect.

CONCLUSION: Domestic institutions such as Denmark negotiated finance, mediate the effect of globalisation pressure in a specific country context. There is little evidence for factual influences of globalisation on the Danish economical factor. There is substantial proof of the ideological collision of neo liberal facts on the policy discussion in Denmark. Now a days Denmark characterised by lower unemployment, dynamic industrial value, a strong currency and stable public finance. This is despite the fact that it has almost no big companies no inclusive high tech industry, a high tax load and

powerful notice groups. No liberal ideologies and their effect on the public sector did not wane organised labour. In more informal public debate is about solution to economic problems and resolution to confliction of interest. In addition the evident to economic problems and the solution of conflict of interest. In supplementary the apparent discharge between ordinary people and the political elite concerning the develop of the EU growing economy among danis people can be interpreted as proof of the ideological impact of non-liberal ideas on Denmark public discourse. an interrogative democracy with high participatory elements has generally guaranteed strong links between the slit and popular discourses in the negotiate economy. The recent split among the cities an d a large part of the population is a new potentially disruptive

Overall the collisions the shimmering globalisatiom tendency on Denmarks nogeotiated economy seems to be similar to a Viking ship in uneven sea. To stay the course and evade remains on has to rely heavily on a social compromise about the captive path and guarantee the association od all member during a sure degree of solidarity and equity. in the coarse ses of globalisation the political elite is engages in efforts to steer the ship, keen to exploit its new opportunities whilst many normal citizens are anxious about the costs. It surplus to be seen whether this recent split can be healed or signifies the appearance of persistent tumult in the communal consensus.

REFERENCES: 1) Amin .a and Thomas ,D (1998) the negotiated economy : state and civic institution in Denmark economy and society (p 255-281) 2) Esping-Anderson g. (1990) the three Worlds Of Welfare Capitalism, Cambridge: Polity Press 3) Garrett, G. And Lange , P(1991) political Responses to Interdependence 4) Berger, S and Dore r eds (1996) : national diversity and global capitalismIthaca: Cornel university press. 5) Benner. M. (1997) the Politics of Growth, Lund : Arkiv 6) http://hbr.org/product/denmark-globalization-and-the-welfare-state/an/709015-PDF-ENG 7) http://hbr.org/product/denmark-globalization-and-the-welfare-state/an/709015-PDF-ENG 8) http://www.oppapers.com/essays/Denmark-Globalisation-And-The-Welfare-State/979427 9) http://esp.sagepub.com/content/6/4/305.abstract 10) http://csis.org/event/seven-revolutions-forum-globalization-and-welfare-state