FINLAND Finland was a province and then a grand duchy under Sweden from the 12th to the 19th

centuries, and an autonomous grand duchy of Russia after 1809. It won its complete independence in 1917. During World War II, it was able to successfully defend its freedom and resist invasions by the Soviet Union - albeit with some loss of territory. In the subsequent half century, the Finns made a remarkable transformation from a farm/forest economy to a diversified modern industrial economy; per capita income is now among the highest in Western Europe. A member of the European Union since 1995, Finland was the only Nordic state to join the euro system at its initiation in January 1999. In the 21st century, the key features of Finland's modern welfare state are a high standard of education, equality promotion, and national social security system; currently challenged by an aging population and the fluctuations of an export-driven economy. INDIA The Indus Valley civilization, one of the world's oldest, flourished during the 3rd and 2nd millennia B.C. and extended into northwestern India. Aryan tribes from the northwest infiltrated onto the Indian subcontinent about 1500 B.C.; their merger with the earlier Dravidian inhabitants created the classical Indian culture. The Maurya Empire of the 4th and 3rd centuries B.C. - which reached its zenith under ASHOKA - united much of South Asia. The Golden Age ushered in by the Gupta dynasty (4th to 6th centuries A.D.) saw a flowering of Indian science, art, and culture. Islam spread across the subcontinent over a period of 700 years. In the 10th and 11th centuries, Turks and Afghans invaded India and established the Delhi Sultanate. In the early 16th century, the Emperor BABUR established the Mughal Dynasty which ruled India for more than three centuries. European explorers began establishing footholds in India during the 16th century. By the 19th century, Great Britain had become the dominant political power on the subcontinent. The British Indian Army played a vital role in both World Wars. Nonviolent resistance to British rule, led by Mohandas GANDHI and Jawaharlal NEHRU, eventually brought about independence in 1947. Communal violence led to the subcontinent's bloody partition, which resulted in the creation of two separate states, India and Pakistan. The two countries have fought three wars since independence, the last of which in 1971 resulted in East Pakistan becoming the separate nation of Bangladesh. India's nuclear weapons tests in 1998 caused Pakistan to conduct its own tests that same year. In November 2008, terrorists allegedly originating from Pakistan

conducted a series of coordinated attacks in Mumbai, India's financial capital. Despite pressing problems such as significant overpopulation, environmental degradation, extensive poverty, and widespread corruption, rapid economic development is fueling India's rise on the world stage.

Geography: Finland
Location: Northern Europe, bordering the Baltic Sea, Gulf of Bothnia, and Gulf of Finland, between Sweden and Russia Geographic coordinates: 64 00 N, 26 00 E Map references: Europe Area: total: 338,145 sq km country comparison to the world: 64 land: 303,815 sq km water: 34,330 sq km Area - comparative: slightly smaller than Montana Land boundaries: total: 2,654 km border countries: Norway 727 km, Sweden 614 km, Russia 1,313 km Coastline: 1,250 km Maritime claims: territorial sea: 12 nm (in the Gulf of Finland - 3 nm)

contiguous zone: 24 nm exclusive fishing zone: 12 nm; extends to continental shelf boundary with Sweden continental shelf: 200 m depth or to the depth of exploitation

Climate: Current Weather cold temperate; potentially subarctic but comparatively mild because of moderating influence of the North Atlantic Current, Baltic Sea, and more than 60,000 lakes Terrain: mostly low, flat to rolling plains interspersed with lakes and low hills Elevation extremes: lowest point: Baltic Sea 0 m highest point: Haltiatunturi 1,328 m Natural resources: timber, iron ore, copper, lead, zinc, chromite, nickel, gold, silver, limestone Land use: arable land: 6.54% permanent crops: 0.02% other: 93.44% (2005) Irrigated land: 640 sq km (2003) Total renewable water resources: 110 cu km (2005) Freshwater withdrawal (domestic/industrial/agricultural): total: 2.33 cu km/yr (14%/84%/3%) per capita: 444 cu m/yr (1999)

Environment - current issues: air pollution from manufacturing and power plants contributing to acid rain; water pollution from industrial wastes, agricultural chemicals; habitat loss threatens wildlife populations

Environment - international agreements: party to: Air Pollution, Air Pollution-Nitrogen Oxides, Air Pollution-Persistent Organic Pollutants, Air Pollution-Sulfur 85, Air Pollution-Sulfur 94, Air Pollution-Volatile Organic Compounds, Antarctic-Environmental Protocol, Antarctic-Marine Living Resources, Antarctic Treaty, Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Environmental Modification, Hazardous Wastes, Law of the Sea, Marine Dumping, Marine Life Conservation, Ozone Layer Protection, Ship Pollution, Tropical Timber 83, Tropical Timber 94, Wetlands, Whaling signed, but not ratified: none of the selected agreements Geography - note: long boundary with Russia; Helsinki is northernmost national capital on European continent; population concentrated on small southwestern coastal plain

Age structure FINLAND: 2009

Population Demographic
0-14 years: 16.6% (male 459,950; female 441,220) 15-64 years: 66.4% (male 1,772,600; female 1,734,450) 65 years and over: 17.0% (male 351,180; female 517,530) Rates per 1000 mean population in 2009. Population growth: 4.7 Live births: 11.3 Deaths: 9.3 Net migration: 2.7 Total Births (2008): 59,530 Total Deaths (2008): 49,094[ Languages At the end of 2009

Finnish language 90.67% (official) Swedish language 5.43% (official) Russian language 0.97% Sami languages 0.03% (semi-official) North Sami, Inari Sami, Skolt S

Finland Demographics Profile 2010

Population: 5,250,275 (July 2009 est.) Age structure 0-14years: 16.4% (male 438,425/female 422,777) 15-64 years: 66.8% (male 1,773,495/female 1,732,792) 65 years and over: 16.8% (male 357,811/female 524,975) (2009 est.) Median age Total: 42.1 years Male: 40.5 years Female: 43.7 years (2009 est.) Population growth rate 0.098% (2009 est.) Birth rate 10.38 births/1,000 population (2009 est.) Death rate 10.07 deaths/1,000 population (July 2009 est.) Net migration rate 0.68 migrant(s)/1,000 population (2009 est.) Urbanization Urban population: 63% of total population (2008) Rate of urbanization: 0.8% annual rate of change (2005-10 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: 0.68 male(s)/female total population: 0.96 male(s)/female (2009 est.) Infant mortality rate Total: 3.47 deaths/1,000 live births Male: 3.78 deaths/1,000 live births Female: 3.15 deaths/1,000 live births (2009 est.) Life expectancy at birth Total population: 78.97 years Male: 75.48 years Female: 82.61 years (2009 est.) Total fertility rate 1.73 children born/woman (2009 est.) Nationality Noun: Finn(s) Adjective: 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 91.2% (official) Swedish 5.5% (official) Other 3.3% (small Sami- and Russian-speaking minorities) (2007)

Cultural Issues

Literacy Definition: age 15 and over can read and write Religions Lutheran Church of Finland 82.5%, Orthodox Church 1.1%, other Christian 1.1%, other 0.1%, none 15.1% (2006) School life expectancy (primary to tertiary education) Total: 17 years Male: 17 years Female: 18 years (2006) Education expenditures 6.4% of GDP (2005) Finland - Status of Women After examining the position of women around the world, the Washington-based Population Crisis Committee reported in 1988 that Finland, slightly behind top-ranked Sweden and just ahead of the United States, was one of the very best places in which a woman could live. The group reached this conclusion after examining the health, educational, economic, and legal conditions that affect women's lives. When compared with women of other nations, Finnish women, who accounted for just over 50 percent of the population in the mid1980s, did have a privileged place. They were the first in Europe to gain the franchise, and by the 1980s they routinely constituted about one-third of the membership of the Eduskunta (parliament) and held several ministerial posts. In the 1980s, about 75 percent of adult women worked outside the home; they made up about 48 percent of the work force. Finnish women were as well educated as their male counterparts, and, in some cases, the number of women studying at the university level, for example, were slightly ahead of the number of men. In addition to an expanding welfare system, which since World War II had come to provide them with substantial assistance in the area of childbearing and child-rearing, women had made notable legislative gains that brought them closer to full equality with men. In 1972 the Council for Equality was established to advise lawmakers on methods for realizing full legal equality for women. In 1983 legislation arranged that both parents were to have equal rights for custody of their children. A year later, women were granted equal rights in the establishment of their children's nationality. Henceforth any child born of a Finnish woman would have Finnish citizenship. After a very heated national debate, legislation was passed in 1985 that gave women an equal right to decide what surname or surnames they and their children would use. These advances were capped by a law that went into effect in early 1987 forbidding any discrimination on the basis of sex and providing protection against it. Once these laws were passed, Finnish authorities signed the United Nations Convention on the Elimination of All Forms of Discrimination Against Women, in 1986.

In a number of areas, however, the country's small feminist movement maintained that the circumstances in which Finnish women lived needed to be improved. Most striking was the disparity in wages. Although women made up just under half the work force and had a tradition of working outside the home, they earned only about two-thirds of the wages paid to men. Occupations, in which women predominated, such as those of retail and office personnel, were poorly paid in contrast to those in which men constituted the majority. Despite the sexes' equal educational attainments, and despite a society where sexual differentiation played a smaller role than it did in many other countries, occupational segregation in Finland was marked. In few of the twenty most common occupations were the two sexes equally represented. Only in occupations relating to agriculture, forestry, and school teaching was a rough parity approached, and as few as 6 percent of Finns worked in jobs where 40 to 60 percent of workers were of the opposite sex. Studies also found that equal educational levels did not--in any category of training--prevent women's wages from lagging behind those paid to men. Women tended to occupy lower positions, while males were more often supervisors or managers. This was the case everywhere, whether in schools or universities, in business, in the civil service, or in politics at both the local level and the national level.

In addition to their occupying secondary position in the workplace, women had longer workdays because they performed a greater share of household tasks than did men. On the average, their workweek outside the home was several hours shorter than men's because a greater portion of them were employed only part time or worked in the service sector where hours were shorter than they were in manufacturing. Studies have found, however, that women spent about twice as much time on housework as men-- about three hours and forty minutes a day, compared with one hour and fifty minutes for men. Men did twice as many household repairs and about an equal amount of shopping, but they devoted only one-third to one-fourth as much time to cleaning, cooking, and caring for children. Given that the bulk of family chores fell to women, and that they were five times more likely than men to head a single-parent family, the shortcomings of Finland's child day-care system affected women more than it did men. The Equality Law that went into effect in 1987 committed the country to achieving full equality for women. In the late 1980s, there was a timetable listing specific goals to be achieved during the remainder of the twentieth century. The emphasis was to be equality for everyone, rather than protection for women. Efforts were undertaken not only to place women in occupations dominated by males, but also to bring males into fields traditionally believed to belong to the women's sphere, such as child care and elementary school teaching. Another aim was for women to occupy a more equal share of decision-making positions. Data as of December 1988

Finnish Culture & Society

Nordic but not Scandinavian Finland along with Iceland is Nordic rather than Scandinavian. This is reflected in their language which is not Germanic in origin. While many social values are the same, there are subtle differences with Scandinavians. Finnish Egalitarianism Finland is an egalitarian society, which is reflected in their language, which employs genderneutral words. Finns are very modest and downplay their own accomplishments. They view being humble and modest as virtues. Finnish Behavior Finns believe there is a proper way to act in any circumstance and always expect courteous behavior. Talk in moderate tones and do not do anything to call attention to yourself. Serial conversation is the rule - i.e. listen to the speaker, wait for them to finish and then reply. Interrupting is rude.

Fancy a Sauna? The sauna has a special role in the domestic life of Finns. It is an experience shared with family and friends. Important business meetings may be followed by a sauna in which the conversation is continued on a more informal basis. Saunas are found everywhere: At the end of calendar year 2002, there were 1,212,000 saunas in private apartments and another 800,000 in summer cottages and public swimming pools. This translates to more than 2,000,000 saunas for a population of 5.2 million.

Etiquette and Customs in Finland

Finnish Meeting Etiquette Greetings are formal, with a firm handshake, direct eye contact, and a smile. It is common practice to repeat your first and surname while shaking hands. When greeting a married couple, the wife should be greeted first. Finnish Gift Giving Etiquette

If you are invited to a Finn's home, bring flowers, good quality chocolates or wine to the host. Flowers should not be given in even numbers. Do not give white or yellow flowers since they are used at funerals. Do not give potted plants. Gifts are opened when received. Finnish Dining Etiquette If you are invited to a Finn's home: Arrive on time. Finns are punctual in both business and social situations. Remove your outdoor shoes before entering the house. Contact the hostess ahead of time to see if she would like you to bring a dish. Offer to help the hostess with the preparation or clearing up after a meal is served. If you are invited for coffee and cake, there may be as many as 7 cakes to sample. Do not discuss business. Thank the hosts for the hospitality before saying good-bye to the other guests. Table Manners Wait to be told where to sit. Table manners are Continental -- hold the fork in the left hand and the knife in the right while eating. Always keep your hands visible when eating. Keep your wrists resting on the edge of the table. Do not begin eating until the hostess invites you to start. Bread and shrimp are the only foods eaten by hand. Even fruit is eaten with utensils. Accept second helpings. When passing salt and pepper shakers, put them on the table within the person's reach. Do not give them directly. Men should keep their jacket on at meals unless the host removes his. Finish everything on your plate. Finns do not appreciate waste. When you have finished eating, place your knife and fork across your plate with the prongs facing down and the handles facing to the right.

Finnish Business Etiquette and Protocol

Relationships & Communication Finns are transactional and do not need long-standing personal relationships in order to conduct business. The basic business style is formal - i.e. there is relatively little small talk and Finns prefer people to speak succinctly and to focus purely on business. Finns do not require face-to- face contact and, in fact, are quite comfortable using e- mail. Finns are excellent time managers who prefer to organize their workday in order to accomplish as much as possible.

Finns are interested in long- term relationships. Relationship building often takes place outside the office: in a restaurant or the sauna. Never turn down an invitation to use the sauna, as it is an entrenched part of the Finnish culture. Finns place a great value on speaking plainly and openly. What someone says is accepted at face value and this is a culture where "a man's word is his bond" and will be treated as seriously as a written contract, so verbal commitments are considered agreements. Finns are direct communicators. Expect your colleagues to tell you what they think rather than what you want to hear. Professional differences are not viewed as personal attacks. Business Meeting Etiquette Appointments are necessary and should be made in advance by telephone, e- mail, or fax. It is extremely difficult to meet with people without a formal appointment. Do not schedule meetings between June and August as many Finns take vacation during the summer. You should arrive at meetings on time or slightly early. Telephone immediately if you will be detained more than 5 minutes. Being punctual is a sign of respect and efficiency. Expect a bare minimum of small talk, if any, before getting into the business discussion. Send an agenda before the meeting as well as the biographies of your team. Meetings begin and end on time. Avoid hype, exaggerated claims, or bells and whistles in your presentation. Finns seldom ask questions. The presenter is expected to make his/her case with sufficient detail that their Finnish colleagues do not need to ask questions. There is no taboo on humor in the business environment. Dress Etiquette Business attire is stylish and conservative. Men should wear dark colored, conservative business suits. Women should wear conservative business suits, trouser suits, or dresses. Business Card Etiquette Business cards are exchanged without formal ritual. Present your business card so it is readable to the recipient. Treat someone's business card with respect as it symbolizes the way you will treat them. * Currency - the currency of Finland is the Euro. Business Etiquette in Finland Etiquette:

Businesspeople are expected to dress smartly, although trousers and a shirt are becoming more common than the traditional suit-and-tie. Most Finnish businesspeople speak English and/or German. Finnish is a complex language for visitors to master; courses can be arranged through the Helsinki University Language Centre, University of Helsinki, Kluuvikatu 7 (tel: (9) 1912 3234; www.helsinki.fi/kksc/language.services/english/index.html). Office hours: Mon-Fri 0800-1615, though some places stay open till 1700. GDP: US$281.2 billion (2008). Balance of Payments Main exports: Machinery and equipment, chemicals, metals, timber, paper and pulp. Main imports: Food, petroleum and petroleum products, chemicals, transport equipment, iron and steel. Political issues Four major partisan groupings have dominated political life in Finland, although none commands a majority position among the electorate. The Finnish Social Democratic Party (Suomen Sosialidemokraattinen PuolueSDP) was organized in 1899 but did not become a significant political force until 1907, following the modernization of the country's parliamentary structure. Swedish-speaking Socialists have their own league within the SDP. The party's program is moderate, and its emphasis on the partial nationalization of the economy has in recent decades given way to support for improvement of the condition of wage earners through legislation. The SDP has generally worked closely with the trade union movement and has been a vigorous opponent of communism. The Center Party (KeskusrapuolueKESK; until October 1965, the Agrarian League Maalaisliitto) was organized in1906. While initially a smallholders' party, it has won some support from middle and large landowners but virtually none from nonagricultural elements. In an effort to gain a larger following in urban areas, the party changed its name and revised its program in 1965. In February 1959, an Agrarian League splinter party, the Finnish Small Farmers' Party, was formed; in August 1966, it took the name Finnish Rural Party (Suomen Maaseudun PuolueSMP). The Liberal People's Party (Liberaalinen KansanpuolueLKP) was formed in December 1965 as a result of the merger of the Finnish People's Party and the Liberal League; in 1982, the LKP merged with the KESK. Esko Aho, leader of the KESK, served as prime minister from 1991 to 1995.

The National Coalition Party (Kansallinen KokoomusKOK), also known as the Conservative Party, was established in 1918 as the successor to the conservative Old Finnish Party. Its program, described as "conservative middle-class," has traditionally emphasized the importance of private property, the established church, and the defense of the state. The Finnish Christian League (Suomen Kristillinen LiittoSKL), founded in 1958, was formed to counter the increasing trend toward secularization and is usually found on the political right with the KOK. The Swedish People's Party (Svenska FolkpartietSFP), organized in 1906 as the successor to the Swedish Party, has stressed its bourgeois orientation and the need for protecting the common interests of Finland's Swedish-speaking population. The Finnish People's Democratic League (Suomen Kansan Demokraattinen LiittoSKDL) represents the extreme left. Emerging in 1944, and illegal before then, the SKDL was a union of the Finnish Communist Party (organized in 1918) and the Socialist Unity Party. The SKDL had urged close relations with the former USSR and the Communist bloc, but in recent years it has moderated its demands for the establishment of a "people's democracy" in Finland. In 1986, a minority group within the SKDL was expelled; for the 1987 elections, it established a front called the Democratic Alternative (DEVA). Following the collapse of the Soviet Union, the SKDL in May 1990 merged with other left parties to form the Left Alliance (VasemmistoliittoVL). The Greens, an environmentalist alliance, won four seats in the Eduskunta in 1987, although they were not formally organized as a political party. From the end of World War II until 1987, Finland was ruled by a changing center-left coalition of parties that included the SDP, KESK, SKDL, LKP, SFP, and SMP. The government formed on 30 April 1987 included seven members of the KOK, including the prime minister, Harri Holkeri; eight from the SDP; two from the SFP; and one from the SMP. Conservative gains in the 1987 election put non-Socialists in their strongest position in parliament in 50 years. Following the general election of March 1991, the Center Party led by Esko Aho emerged as the largest single party in parliament. A new four-party, center-right coalition was formed composed of the Center Party, the National Coalition Party, the Swedish People's Party, and the Finnish Christian League. The victory by the SDP in the 1995 parliamentary elections ended the reign of the rightcenter coalition that held control during four years of economic stagnation. The SDP's leader, Paavo Lipponen, became Finland's new prime minister in April1995. Lipponen fashioned a "rainbow coalition" following the March 1995 elections that included the following: the Social Democratic Party (with Lipponen as Prime Minister), the National Coalition Party, the Left Alliance, the Swedish People's Party, and the Green League. In opposition were the Center Party, the Finnish Christian League, the Young Finns, the Ecology Party, the True Finns, and the land Island's Party representative.

The parliamentary election in 1999 reflected a mixture of discontent and continuity. A cooling economy (caused by Russia's economic collapse in 1998), the opposition's plans for radical tax cuts, and controversy about EU policies dominated the campaign. Opposition leader (and former prime minister) Aho promised radical tax and economic policy changes. He could govern only if he succeeded in prying the Conservatives out of Lipponen's coalition. SDP party scandals over privatization of the telecommunications sector and other issues threatened the otherwise impressive performance of the rainbow coalition that many thought would not survive the full parliamentary term. The outcome of the 1999 elections was a setback for the Social Democrats, whose share of the votes declined from 28.3% in 1995 to 22.9% in 1999. The SDP parliamentary delegation declined from 63 to 51. The Conservatives advanced from 17.9% of the vote in 1995 (and 39 seats) to 21% in 1999 (and 46 seats). The three smaller coalition parties continued to share 42 seats among them. The opposition Centrists advanced modestly from19.9 to 22.4% of the vote (gaining four seats for a total of 48). The SDP remained the largest parliamentary group, and Lipponen retained the right to renew his coalition, making it the longest-serving government in Finnish history. The elections of 2003 were colored by disagreements between Lipponen's Social Democrats and the Center Party led by Anneli Jtteenmki. Jtteenmki accused Lipponen of closely aligning Finland with the US position on forcibly disarming Saddam Hussein's regime in Iraq. Jtteenmki's criticisms were popular with voters, and the Center Party emerged with 24.7% of the vote to take 55 seats in the Eduskunta. The representation of the other parties in parliament in 2003 was as follows: SDP, 22.9% (53 seats); KOK, 18.5% (40 seats); the Left Alliance, 9.9% (19 seats); the Greens, 8%, (14 seats); the Christian Democrats, 5.3% (7 seats); the People's Party, 4.6% (8 seats); the agrarian True Finns Party, 1.6% (3 seats); and the representative from the land Island's Party held one seat. Jtteenmki formed a coalition government with the Social Democratic Party and the Swedish People's Party.

Trade Policy
Finland's trade policy programme Finlands Trade Policy Programme is a Government Resolution concerning the policies that lay down the guidelines for the countrys trade policy in the next couple of years. This is the first overall presentation of the impacts of Finland's EU membership on the trade policy environment and the content of trade policy. The Programme therefore seeks to provide a detailed analysis of the tasks and key objectives of trade policy in the new global economy. Global world economy Influence of EU-membership on Finland's trade policy Specific measures for developing countries

The basis of Finland's trade policy Global world economy The world economy is for the first time becoming truly global. The OECD countries still dominate the world economy but East Asian developing countries, in particular, are gaining an expanding share of production, trade and investment. The Russian economy is also growing, but it is still dependent on oil and gas production. The poorest developing countries, especially in Africa, have not managed to keep pace with the emerging developing countries, and their share of the world economy has further declined. The pursuit of economic growth, global competition, specialization, and business activities based on the dispersal of the value chain are likely to further increase international trade and investment. The dismantling of barriers to trade and investment will continue. However, especially in case the multilateral trade negotiations fail, it is possible such regional and bilateral arrangements are concluded as will restrict access to and operations on markets and which in this sense will erode the international trading system. Fears and concern provoked by changes in the world economy have started to transform into growing protectionist pressures. The intensifying efforts to develop multilateral rules reveal that there is a need for improved global governance. Internationalizing companies will be less and less dependent on their original home States and on individual States in general. The mobility of companies has prompted States and regions to engage in competition on the location of the most favorable operating business environments. From the point of view of governments and nations, questions such as where companies pay their taxes, where profits are repatriated, where investments are made and where people are employed are still relevant. Influence of EU-membership on Finland's trade policy Membership in the EU has changed the operating environment of Finland's trade policy, and the EUs negotiating power has significantly strengthened Finlands trade policy position. Effective participation in the EUs common commercial policy requires mastering its broad agenda and success in ensuring that our national objectives are incorporated in the EUs objectives. It is therefore necessary to allocate sufficient resources for the work and to develop more proactive working methods. Instead of border protection measures, trade policy focuses more and more on national regulatory systems. Therefore, ideological and valuebased choices, which have traditionally fallen within the framework of other policy sectors, play a more prominent role in trade policy than earlier. There are more and more actors in society willing to influence trade policy, and trade policy is criticized more than before. Active political and civil society discussion on trade policy is therefore welcome.

Trade policy plays an increasingly important role in protecting Finnish labor, livelihoods and welfare. Trade policy measures strengthen the competitive capacity of the Finnish economy by influencing the operating environment of business and trade outside the national borders and by ensuring a smooth flow of imports. Finlands general trade policy line has always emphasized the importance of dismantling barriers to trade and investment and participation in an open world economy. It is important that the EU continue to pursue trade policy that is in line with Finlands policy, aiming at the dismantling of barriers to trade and investment and the reinforcement of common rules for international trade. Specific measures for developing countries Measures carried out in different policy sectors to the benefit of developing countries must be mutually compatible and reinforcing. Trade policy decisions concerning developing countries are very significant in this context. The less developed developing countries need more effective special and differential treatment than before in the context of trade policy. It must depend on their level of development and aim at their integration into international trade and the trading system, avoiding the introduction of separate rights and obligations on a permanent basis. The trading capacity of the poorest developing countries must be supported. The more advanced developing countries should remove trade barriers more systematically than before and also take part in granting special treatment to the poorest countries. The basis of Finland's trade policy Finlands economic success requires the further removal of barriers to export and investment and an open import policy that promotes competition. The key challenges include customs duties and non-tariff barriers to trade and trade-distorting measures that are still prevalent in many markets. However, the trade policy agenda is subject to constant revision due, for instance, to changes in the structure of the world economy. Amidst these changes, it is important to ensure the viability of agriculture and to take care of the foundations of the welfare state. The continued existence, expansion and reinforcement of the multilateral rules-based trade policy system, embodied in the WTO, is of utmost importance for Finland. However, in order to safeguard its interests, the EU has to further deepen its bilateral trade relations especially with its principal trading partners. At the latest when the results of the current WTO round of trade negotiations are available, the EU will have to assess whether it should participate in new free trade arrangements in order to protect European competitiveness. INVESTMENTS Finnish companies together with the government are heavily investing in R&D. According to the Organization for Economic Cooperation and Development (OECD) statistics, Finland ranks second in the OECD in terms of R&D intensity at 3.45% of gross domestic product (GDP) and aims at 4% of GDP by 2010, leads the OECD in number of researchers in the

labor force, ranks fourth among OECD countries in terms of scientific articles, and ranks above average in number of triadic patents per capita. However, R&D investments are concentrated in certain manufacturing sectors, especially electronics, and dominated by a handful of large domestic multinational companies. For example, Nokia, the Finnish power house in mobile business, alone accounts for almost half of overall R&D business. The number of R&D-oriented start-ups has not met the expectations and the problem is partly owed to a lack of risk capital. Generally, Finnish companies are considered to have high expertise in technology while sales and marketing require more development. Due to the above mentioned lack of risk capital and need to strengthen their organizations, Finnish companies are actively seeking financing and active financiers outside Finnish borders. Traditionally, Swedish investors have been active in Finland, but investors from other areas are also of interest of Finnish companies and vice versa. Lower entry valuations and greater increase potential of the enterprise value, compared to their U.S. competitors, makes Finnish companies rather attractive targets, especially for U.S investors. The new Finnish Companies Act, entered into force during 2006, makes the investment process very flexible including, inter alia, a possibility to increase share capital without issuing new shares and issuance of new shares without increasing share capital. The Companies Act also includes a possibility to make the investment into a so called invested unrestricted equity fund enabling more flexible return of the investment. Incorporation of a new company is an easy and fast process that requires Memorandum of Association with Articles of Association, investment of the minimum share capital EUR 2,500, and nomination of the board members. The minimum number of board members includes one ordinary member and one deputy member and the general coalition consists of 3-5 ordinary members. Without exemption of the National Board of Patents and Registration of Finland, at least one ordinary member and one deputy member must be domiciled within the European Economic Area. According to the statistics of the Finnish Venture Capital Association, in 2009 Finnish target companies received investments from Finnish and foreign private equity firms at the value of 655 million euros about 4% more than received during 2008. The 655 million euros were invested in 223 different target companies in 357 transactions and the value per transaction increased compared to the previous year. 87 million euros out of 655 million were categorized as venture capital investments and invested to 162 target companies through 251 transactions and the remaining 568 million euros were categorized as buyout investments invested to 61 target companies through 106 transactions. During the first decade of 2000, many Finnish companies were acquired by foreign companies and/or investors. For example, GE acquired Instrumentarium, a Finnish medical device designer and manufacturer; Bank of America acquired Paroc Group, a manufacturer of mineral wool insulation products and solutions; Technitrol Group acquired LK Products Oy, a supplier of antennas for mobile phones and other wireless terminal equipment; and Google has acquired some smaller high-tech companies such as social mobile start-up Jaiku. Foreign

owned companies are, equally with Finnish-owned companies, eligible for government incentives that are given in the form of cash grants, loans, tax benefits, equity participation, guarantees and employment training. The R&D incentives granted by Finnish Funding Agency for Technology and Innovation (Tekes) must, however, be returned in case there is a change of ownership in the company that has received such R&D incentives and no prior written consent of Tekes is received for the change of control. Invest in Finland assists international companies in finding business opportunities in Finland and provides all the relevant information and guidance required to establish a business in Finland. One of their latest success stories was to assist Google in locating their data center in Finland. Further, private service providers have developed services to enable foreign investors to find and evaluate investment opportunities in Finland. One example of these kind of services is Technopolis Online. Number of new foreign companies in Finland grew substantially in 2007 Growth mainly from Trade and Services. The number of new foreign owned companies in Finland grew substantially in 2007. The growth was 46 % on the figures of the previous year. The annual statistics of Invest in Finland show that 303 new foreign owned companies in 2007 started in Finland. This is the highest figure ever registered. Sweden remains as the number one investor country with 87 new entries (73 in 2006). Sweden is followed by US (34), UK (24) and Denmark (23). About two thirds (203) of the new foreign owned companies in 2007 were the result of an acquisition. The trade and service segment particularly is attracting new foreign investors in Finland with 175 new entries followed by information and communication technology, environmental technology and services and healthcare. The growth of the new foreign owned companies in trade and services has been extremely rapid during the past years. The amount of the new entrants in 2007 has doubled from 2005. The growth in the environmental segment is also very encouraging, confirms Tuomo Airaksinen, CEO of Invest in Finland. Finland is ideal location for datacenters Finlands cheap energy prices, cool climate, eco-efficient technologies, and strong granite bedrock are attracting new investments in datacenters. IT service company Tieto is constructing a datacenter housing 50,000 servers in the City of Espoo in southern Finland. The Finnish granite bedrock is the best place for servers, according to Ari Karppinen, Tietos country director for Finland. Inexpensive energy, stable conditions and a good cost structure also contributed to Tietos choice of location. Finlands modern, eco-efficient datacenters have a growing demand globally, especially as the datacenters energy requirements are rising due to more companies using cloud services,

according to Karppinen. The energy produced by Tietos new datacenter will be piped into the district heating system by Fortum, a leading energy company focusing on the Nordic countries, Russia and the Baltic Rim area. The energy produced is sufficient to heat 15,000 houses in Espoo. The worlds most eco-efficient datacenter is located in the bedrock beneath the Katajanokka district of Helsinki. Run by ICT service provider Academica Oy in cooperation with Helsingin Energia, the facility has been designed to use alternative energy sources and also utilises the heat produced by the servers. Thanks to efficient energy use, Academica is saving about EUR 150,000 from its electricity bill. For six months of the year, the datacenter makes use of district cooling produced from cold sea water. Helsingin Energia uses the energy produced by the datacenter in its district heating system to heat buildings and water in the city. Cost-effective district cooling and cool sea water were also reasons why Google decided to locate its datacenter in a former paper mill in Summa, south-western Finland. CSC- IT Centre for Science has followed Googles example by choosing another former paper mill site in Kajaani, northern Finland, to locate its energy-efficient datacenter. CSCs facility will source its energy from a water power station and its cooling water from an ad Promotion of foreign investment In respect of investments, the Foreign Service endeavours to increase knowledge about Finland as an attractive target of foreign direct investment (FDI). The Foreign Service endeavours to enhance Finland's international visibility among investors with a view to increasing the flow of foreign capital and direct investments in the country. A growing volume of business helps intensify the effectiveness of the economy and encourages the commercialization of innovations. By expanding and developing the network of Bilateral Investment Agreements, the Foreign Service seeks to increase and support Finnish investments abroad. The positive impacts of foreign investment on the economy, technology and employment have been noted worldwide. As a result, there is intensified competition for foreign investment between nations at all levels of development - the industrial countries among themselves, the developing countries against one another and the industrial and developing countries against each other. Considering the intensified international competition, the Foreign Service supports the activities of Invest in Finland that is the leading expert service organisation promoting foreign direct investment in Finland. Through its network of diplomatic and consular missions abroad, the Foreign Service assists Invest in Finland in identifying fields of business and target countries that would be of interest for Finland and in contacting clients. When target countries are chosen, attention is paid to their volume and potential of foreign investment and to the fields of activity that they are active in.

Finland is marketed as target of investment also in connection with important international high-level meetings and visits. In 2007, the foreign affiliates located in Finland employed nearly 222,000 employees. Their turnover accounted for some 20 % of the turnover of all enterprises and their personnel for a good 14 %. In 2007, the 500 largest Finnish companies employ 0.9 million employees of which 0.4 million jobs are abroad. Particularly, the home-owned MNCs have been a driving force in the change of bargaining structure from centralized collective bargaining towards company-level bargaining. The home-owned MNCs have been forerunners in implementation of flexible working time arrangements and locally agreed pay increase models too. The MNCs in Finland are covered by sectoral collective agreements

BALANCE OF PAYMENT
Top 5 Exports from Finland to the Rest of the World, 2008 Commodity 1. Electrical, electronic equipment 2. Nuclear reactors, boilers, machinery, etc US $Millions $19,973.0 $14,215.5 Share of total 21% 15% 12% 7% 6% 100%

3. Paper & paperboard, articles of pulp, paper and board$11,551.8 4. Mineral fuels, oils, distillation products, etc 5. Iron and steel Total $6,632.9 $6,245.5 $96,888.0

Top 5 Imports into Finland from the Rest of the World, 2008 Commodity 1. Mineral fuels, oils, distillation products, etc 2. Electrical, electronic equipment 3. Nuclear reactors, boilers, machinery, etc 4. Vehicles other than railway, tramway 5. Iron and steel Total US $Millions $16,196.9 $12,655.1 $10,879.0 $8,156.0 $4,043.5 $92,159.2 Share of total 18% 14% 12% 9% 4% 100%

INDIAN Economic overview:

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. An industrial slowdown early in 2008, followed by the global financial crisis, led annual GDP growth to slow to 6.5% in 2009, still the second highest growth in the world among major economies. India escaped the brunt of the global financial crisis because of cautious banking policies and a relatively low dependence on exports for growth. Domestic demand, driven by purchases of consumer durables and automobiles, has re-emerged as a key driver of growth, as exports have fallen since the global crisis started. India's fiscal deficit increased substantially in 2008 due to fuel and fertilizer subsidies, a debt waiver program for farmers, a job guarantee program for rural workers, and stimulus expenditures. The government abandoned its deficit target and allowed the deficit to reach 6.8% of GDP in FY10. Nevertheless, as shares of GDP, both government spending and taxation are among the lowest in the world. The government has expressed a commitment to fiscal stimulus in FY10, and to deficit reduction the following two years. It has increased the pace of privatization of government-owned companies, partly to offset the deficit. India's long term challenges include widespread poverty, inadequate physical and social infrastructure, limited employment opportunities, and insufficient access to basic and higher education. Over the long-term, a growing population and changing demographics will only exacerbate social, economic, and environmental problems. GDP (purchasing power parity): $3.57 trillion GDP (official exchange rate): $1.236 trillion GDP - real growth rate:

7.4%

GDP - per capita (PPP): $3,100 GDP - composition by sector: Agriculture: 17% Industry: 28.2% Services: 54.9% Labor force: 467 million Labor Skills: Indians are known worldwide for their working skills and they have developed in every field of work. Labor force - by occupation: Agriculture: 52% Industry: 14% Services: 34% Unemployment rate: 10.7% Population below poverty line: 22.3% Household income or consumption by percentage share: Lowest 10%: 3.6% Highest 10%: 31.1% Distribution of family income:

Gini index: 36.8 Inflation rate(2009) 10.9% INDIAN TRADE OVERVIEW Investment (gross fixed): 32.3% of GDP Budget: Revenues: $129.8 billion Expenditures: $214.6 billion Public debt: 58% of GDP Inflation rate (consumer prices): 10.9% Stock of money: $278.8 billion (31 December 2009) Stock of domestic credit: $1 trillion (31 December 2009) Market value of publicly traded shares: $1.227 trillion (31 December 2009) Agriculture - products: Rice, wheat, oilseed, cotton, jute, tea, sugarcane, lentils, onions, potatoes; dairy products, sheep, goats, poultry; fish Electricity - consumption: 568 billion kWh

Electricity - exports: 810 million kWh Electricity - imports: 5.27 billion kWh Oil - consumption: 2.98 million bbl/day Oil - exports: 739,600 bbl/day Oil - imports: 3.05 million bbl/day Natural gas - consumption: 51.27 billion cu m Natural gas - exports: 0 cu m Natural gas - imports: 12.62 billion cu m Current account balance: -$31.54 billion Exports: $164.3 billion Exports - commodities: Petroleum products, precious stones, machinery, iron and steel, chemicals, vehicles, apparel. Exports - partners:

UAE 12.87%, US 12.59%, China 5.59% Imports: $268.4 billion Imports - commodities: Crude oil, precious stones, machinery, fertilizer, iron and steel, chemicals Imports - partners: China 10.94%, US 7.16%, Saudi Arabia 5.36%, UAE 5.18%, Australia 5.02%, Germany 4.86%, Singapore 4.02% Reserves of foreign exchange and gold: $274.7 billion Debt - external: $223.9 billion Stock of direct foreign investment -at home: $157.9 billion Stock of direct foreign investment - abroad: $76.62 billion