This action might not be possible to undo. Are you sure you want to continue?
Constitutional System China or People’s Republic of China adopts socialist system or communism in their political system in their decision-making processes in governing the country. The country’s sole political party in power is known as the Communist Party of China. The government have the sole power to control all activities done by their citizen as what have been describe in how communism system worked in governing a country. In other words, the purposes of working in China are to contribute to the nation and also to the government as the government control on all activities in the country. ii. Stability of Government The stability of the China government is quite moderate and stable because the administration of the government are not publicize to the public either through the press or on the internet. So, the degree of the citizen involvement in the politics is low because of the heavy restrictions impose by the government. However, the policies impose and the law regulations are quite effective in terms of economy where China is one of the leading countries in the world. In the recent years (2001), China has joined the World Trade Organization and results rapid growth in industrial and manufacturing sectors because of the cheap labor in China. But still problems such as managing environmental degradation, demographic pressure and the extreme immigration from rural to urban area must be faced by the government. iii. Business Freedom The business freedom in China is quite tight because of the regulation impose by the government where they restrict businesses from other countries coming in. But recently, China government open their gate to the outside world to set up business in their country. It takes 37 days to start anew business in China compared to the world average 38 days. While it takes 1.7 years from the filling for insolvency in court until the resolution of distressed assets. Examples of business freedom in China are supermarketization and opening market to foreign multinationals company because of
China loosen their trade policy to the outside world in their trading. The government encourages more newtechnology business in the market besides allowing foreign institution enters the nation financial institution in providing foreign currency.the entry of China into WTO. state trading in certain goods. China’s weighted average tariff rate was 3. China’s trade freedom score to account for non-tariff barriers deducted about twenty points. complex regulations and standards. issues involving the protection of intellectual property rights. on October 2008. Supermarketization is where the government shuts down the traditional “wet market” and transform them into supermarket. Because of lower corporate tax rate.9 45. Tariff Rate Income Tax Rate Corporate Tax Rate GDP (billion) GDP per Capita Unemployment Rate Inflation Rate FDI Inflow (millions) Tax Burden % GDP Government Expenditure % GDP Population (billions) 3.9 108300 18.org). non-transparent tariff classifications. iv. we can see that China has moderate Corporate Tax Rate and high Income Tax rate. subsidies. import and export licensing. So.3 19. new policies impose where . export and import industry. Factors that affect the cost of trade freedoms are import and export bans and restrictions. Furthermore.0 25. services market restrictions.9 percent in 2008 based from the web (heritage. and inconsistent and corruption-prone customs administration add to the cost of trade. Tax Policies Below are the economic data for China.9 1300 Based on the rates and statistic given. Trade Freedom In the past few decades.0 7900 5962 4. v. many MNC started to open their business in China and the numbers of FDI have increased rapidly.2 5.
9 • Tariff Rate Income Tax Rate Corporate Tax Rate GDP (billion) GDP per Capita FDI Inflow (millions) Tax Burden % GDP Government Expenditure % GDP Unemployment Inflation (CPI) FDI Inflow - 4.9 45.3 based on what recorded in the recent years.0% 5-year compound annual growth.0 7900 5962 108300 18. 2) Economic Factors Economic Freedom Score – 51.0 25.0% growth. Disposable income of buyers ii.3 billion $7.3 billion i. The overall tax revenue as a percentage of GDP was 18.2% 5.3 19.0 Population GDP (PPP) • - 1.9 trillion.9% $108.individual income tax is no longer paid on interest on bank deposits. $5962 per capita 3. Credit accessibility . 9. 11.
Unemployment rates Labor force 812. *Substantial unemployment and underemployment in rural areas. on October 2008.5%) b) industry (27. Source from – www.2%) Unemployment rate 4.The government has directly and indirectly controls their banks and financial institution.7 million Labor force by occupation a) agriculture (39. Because of lower corporate tax rate. Monitory Freedom .cia. *Including migrants may boost total unemployment to 9%. The government encourages more new-technology business in the market besides allowing foreign institution enters the nation financial institution in providing foreign currency. v. many MNC started to open their business in China and the numbers of FDI have increased rapidly.gov iv. Fiscal Freedom China has moderate Corporate Tax Rate and high Income Tax rate. Investment done in China are also control and regulated because of their judicial system is very vulnerable to the political issues and influence iii.2% (2008 est.) *Official data from urban area only.3 based on what recorded in the recent years. The overall tax revenue as a percentage of GDP was 18. new policies impose where individual income tax is no longer paid on interest on bank deposits.2%) c) services (33. Furthermore.
there are supervised roughly 5. restricted and permitted China laws and regulatory are non-transparency.From 2006 until 2008. But still the government intervenes on certain goods and products to maintain stability of the prices.31% . and a legal system that cannot guarantee the sanctity of contracts where these must be face by the foreign investor.) 2. In China.600 financial institutions in 2008 and China has only two private banks while there are four state-owned banks account for over 50 percent of total assets.2% where it is consider moderate for that particular percentage. we can see that the economic is a mixture of free market and control market. Interest rates Central bank discount rate Commercial prime lending rate ix. Inflation Inflation rate 5. viii. vi. the inflation rate is around 5. Investment Freedom China’s Foreign Investment Catalogue describe that different foreign investment are group under different types such as encouraged. vii. This financial system is control and supervised by The China Banking Regulatory Commission.) and -0. weak protection of intellectual property rights.79% 5. Financial transactions are also tightly regulated. The government also gives subsidies to small business and industry to compete with foreign goods where they can sell at lower prices. industrial policies protecting local firms. complex and inconsistently enforced laws and regulations.7% (2009 est. corruption. Financial Freedom The financial systems in China are control directly to the government and it is tightly controlled. prohibited. As what mention where China economic freedom score is around 51 from the full score 100. So.9% (2008 est. The price of product sold can be determined by the quantity demanded of the product.
Korean.000 live births (2009 est. Xiang. Minbei (Fuzhou). Hui. Minnan (Hokkien-Taiwanese).edu/countries/china/statistics/ .) Ethnic groups : Han Chinese 91.5%. Hakka dialects.10% (2009 est. Christian 3%-4%.00% (2009 est.) 20. Mongol.) Languages : Standard Chinese or Mandarin (Putonghua.5% (2000 census) Nationality Chinese : noun: Chinese (singular and plural) adjective: Religions : Daoist (Taoist).) Total fertility rate : 1.) HIV/AIDS . Muslim 1%-2% note: officially atheist (2002 est.44 years male: 69.53 % (2004 est. Wu (Shanghainese).) Source from http://globaledge. Tibetan.Adult Prevalence Rate : 0.25 deaths per 1.92 % male: 95. Manchu. and other nationalities 8. Yi. Dong.26 years (2004 est.66% (2009 est. Buddhist. Gan. 3) Social Factors Population Population growth rate Population Below Poverty Line Infant mortality rate Life expectancy at birth total population: 71. Tujia.) 0.msu.) 2. Yao.34 billion (2009 est. based on the Beijing dialect). Buyi. Uyghur. Zhuang. Miao. minority languages (see Ethnic groups entry) Literacy: total population: 90. Yue (Cantonese).71 years female: 73.79 children per woman (2009 est.Inflation rate decline vastly from 2008 until 2009 because of the stable currency of China.14 % female: 86.) : : : : : 1.
iii. Distribution of Wealth Distribution of income or consumption by percentage share : Lowest 10% : Lowest 20% : Second 20% : Third 20% Fourth 20% : : 1.edu/countries/china/statistics/ China has an extreme gap between the lowest 20% and the highest 20% after 60 years China change their system in their economy. changes in the quality of life.13% 33. Changes in lifestyles and trends Lifestyles and trends in China change in many ways such as the level of consumption. attitude towards new product especially from the west. and also changing from quantity satisfaction to quality satisfaction.2 year. Besides that.06% 49. Labor Freedom Ranks .coloured clothes.00% 14. iv. Education expenditures in China is about 1.msu.0% was able to read and write at a specified age.9% of the GDP. Educational levels The literacy rate for China is around 91.66% 9. While the average years of schooling is 11. changes in trends can be seen from the degree of fashion sense where citizen tend to buy more colourful and striking colours compare dull. ii.99% Highest 10% : Highest 20% : Source from http://globaledge.22% 22.i.80% 4.
carrier rockets. government procurement. All land is state-owned. and there is a lack of independent investigative bodies and courts. ii. building the first atomic reactor. but individuals and firms may own and transfer long-term leases (subject to many restrictions) as well as structures and personal property. Local officials can ignore court decision with impunity. successful testing of atom and hydrogen bombs. vi. 4) Technological Factors i. Research and Development . brand names. Intellectual property rights are not enforced effectively. Property Rights China’s judicial system is weak. and satellite launching technology. and construction most severely. The major achievements are the discovery of the Daqing Oilfield. trademarks. nuclear power stations. The non-salary cost of employing a worker is high. Dismissing an employee may require prior consultation with the local labor bureau and labor union. Corruption affects banking. and trade secrets are routinely stolen. v. patents. the achievement of science and technology in China are remarkable where they manage to achieve many discoveries in the science field. positron and negatron electronic collider. Freedom of corruption Corruption is perceived as widespread. China ranks 72nd out of 179 countries in Transparency International’s Corruption Perceptions Index for 2008. and many companies resort to arbitration. synthesis of crystalline insulin. Science and Technology Through the period. finance. Copyrights. Rapid improvement in science and technology also create more jobs in the manufacturing industry and also make the quality of life better and easier.China’s labor regulations hinder overall employment and productivity growth.
but boasts a modern. The economy remains a world leader in business freedom. with about one-fourth of its land mass above the Arctic Circle. trade . The country is sparsely populated. Stability of Government. Environmental Protection Laws The government takes serious matter on protecting the environment where they impose many regulations and laws in protecting. Employment Regulations China’s labor regulations hinder overall employment and productivity growth. PESTEL analysis for Finland Outlined below is the PESTEL analysis for Finland as a whole.The government design many plans and strategies in developing the R&D industry. competitive. Many programs to enhance R&D industry are launched such as the “Torch Program” and the “Scaling Heights Program” 5) Environmental Factors i. Dismissing an employee may require prior consultation with the local labor bureau and labor union. The modern and competitive Finnish economy has long benefited from high levels of economic freedom. preventing and controlling industrial pollution and improving urban environment. and transparent economy with vibrant information and communications technology sectors. 1) Political Factors i. The government also collaborate with many NGO’s in order to maintain the mother nature. Constitutional System Finland joined the European Union in 1995 and adopted the euro as its currency in 1999. The non-salary cost of employing a worker is high. ii. 6) Legal Factors i.
high government spending (close to half of Finland’s GDP) supports an extensive welfare state. Private enterprises continue to blossom and promote innovation in an efficient regulatory and legal environment. the EU has high or escalating tariffs for agricultural and manufacturing products and its MFN tariff code is complex. like many other European nations. Trade Freedom Finland’s trade policy is the same as that of other members of the European Union.freedom. and Finland. Restrictive labor regulations undermine employment and productivity growth. import restrictions and bans for some goods and services. Previously robust economic growth slowed in 2009 due to the global recession. Business Freedom The overall freedom to start.3 percent in 2008. Finland’s overall high level of economic freedom is curbed by high government spending and the rigidity of the labor market. and inconsistent regulatory and . As in many other European social democracies. operate. The common EU weighted average tariff rate was 1. Obtaining a business license requires much less than the world average of 18 procedures and 218 days. the financial sector has weathered the global financial turbulence relatively well. iv. property rights. With prudent and sound banking practices. iii. Non-tariff barriers reflected in EU and Finnish policy include agricultural and manufacturing subsidies. Finland became a member of NATO’s Partnership for Peace program in 1994 but has not pursued full NATO membership because of its neutral military status. However. compared to the world average of 35 days. and freedom from corruption. market access restrictions in some services sectors. Bankruptcy is straightforward and not costly. faces demographic challenges in the form of an aging population and shrinking workforce that could threaten future growth and the government’s ability to maintain generous social spending programs. Starting a business takes an average of 14 days. quotas. nontransparent and restrictive regulations and standards. and close a business is strongly protected under Finland’s regulatory environment.
The top corporate tax rate is 26 percent. an inheritance tax. v.3 5.5 26. overall tax revenue as a percentage of GDP was 43.5 percent.3 million . In the most recent year.4 3.3 Finland has moderate tax rates but a relatively high level of overall taxation. and a flat 28 percent tax on capital income.3 30. The top income tax rate is 30.1 percent.8 Population GDP (PPP) - 5.9 -4200 43.0 188. 2) Economic Factors Economic Freedom Score 73. Tariff Rate Income Tax Rate Corporate Tax Rate GDP (billion) GDP per Capita Unemployment Rate Inflation Rate FDI Inflow (millions) Tax Burden % GDP Government Expenditure % GDP Population (billions) 1. Ten points were deducted from Finland’s trade freedom score to account for non-tariff barriers.1 47.2 35427 6. with municipal rates between 16. Other taxes include a value-added tax (VAT). Tax Policies Below are the economic data for Finland.5 percent and 20 percent.customs administration among EU members.
2 billion 0.0 million i.7% Unemployment rate 6.3% Commerce: 15.9% Finance.0 188.5% Transport and communications: 6.5 26.3 Tariff Rate Income Tax Rate Corporate Tax Rate GDP (billion) GDP per Capita Tax Burden % GDP Government Expenditure % GDP Population (billions) Unemployment Inflation (CPI) FDI Inflow 6.2% 5-year compound annual growth $35.1 47.678 million Labor force by occupation Agriculture and forestry: 4. and business services: 14.9% Public services: 32.2% Construction: 7.4% 3.5% Industry: 18.427 per capita 1. Unemployment rates Labor force 2.3 30.9% growth 3. insurance.2 35427 43.9% -4200. $188.4% .3 5.
electrical contracting. v. There are no exchange controls and no restrictions on current transfers or repatriation of profits. guided by sound regulations and prudent lending. Investment Freedom Finland is open to foreign direct investment. Restrictions on the purchase of land apply only to non-residents purchasing land in the Aaland Islands. Financial Freedom Finland’s sophisticated financial system provides a wide range of services. As a participant in the EU’s Common Agricultural Policy. Regulation is relatively transparent and efficient. and a flat 28 percent tax on capital income.1 percent. Ten points were deducted from Finland’s monetary freedom score to account for measures that distort domestic prices. but three bank groups (Nordea. Non– European Economic Area investors must apply for a license to invest in security.1 percent. telecommunications. OP Bank Group. There are more than 300 domestic banks. and restaurants.5 percent. The top income tax rate is 30. the government subsidizes agricultural production. and residents and nonresidents may hold foreign exchange accounts. iv. and the Sampo Group) dominate the .ii. alcohol. In the most recent year. Between 2006 and 2008. an inheritance tax. Fiscal Freedom Finland has moderate tax rates but a relatively high level of overall taxation. It also imposes artificially low prices on pharmaceutical products.5 percent and 20 percent. Finland’s weighted average annual rate of inflation was 3. aviation. Monitory Freedom Finland uses the euro as its currency. distorting the prices of agricultural products. Certain acquisitions of large companies may require follow-up clearance from the Ministry of Trade and Industry. Other taxes include a value-added tax (VAT). The top corporate tax rate is 26 percent. iii. with municipal rates between 16. overall tax revenue as a percentage of GDP was 43.
0% (2009 est. Capital markets determine interest rates. and credit is available to nationals and foreigners. which offers overnight credit to banks in the euro area Commercial bank prime lending rate3. The impact of the global financial turmoil on the banking sector has been relatively muted.00% (2009 est.000 live births (2009 est. The stock exchange is part of a Baltic–Nordic exchange network.) .79% (31 December 2008) vii.51% (31 December 2009) 5. The government owns about 14 percent of the Sampo Group.1% (2008 est.system.) : 0.25 million (2009 est.10% (2009 est.75% (31 December 2009) and 3% (31 December 2008) * this is the European Central Bank's rate on the marginal lending facility.) 4. and about 60 percent of assets are foreign-owned. Merger of the Financial Supervision Authority and Insurance Supervisory Authority came into force in January 2009.) Population Population growth rate : : 5.) 0. vi. Inflation Inflation rate 3) Social Factors . Interest rates Central bank discount rate . Banking is open to foreign competition.1.47 deaths per 1.) Population below Poverty Line Infant mortality rate Life expectancy at birth : : 3.
Total population: 78.6%.Adult Prevalence Rate : 0. Distribution of Wealth Household income or consumption by percentage share: lowest 10% : lowest 20% : second 20%: third 20% : fourth 20% : highest 10%: highest 20%: NA% NA% NA% NA% NA% NA% NA% ii.30 years (2004 est.and Russian-speaking minorities) (2007) Literacy: total population: NA % male: NA % female: NA % HIV/AIDS .1%.) Total fertility rate : 1. Swede 5.1%.4%.) Finn 93.3% (small Sami. Swedish 5.30 years female: 82. none 15.2% (official).5%. other Christian 1.3%.10% (2009 est. Orthodox Church 1. Estonian 0.5% (official). other 0.5%.1% (2006) Languages : Finnish 91.1%.73 children per woman (2009 est.71 years male: 75.1%.1% (2006) Nationality : Religions : Lutheran Church of Finland 82. Russian 0. Sami 0.msu. other 3.edu/countries/finland/statistics/ i. Roma noun: Finn(s) adjective: Finnish Ethnic groups : (Gypsy) 0.) Source from http://globaledge. Changes in lifestyles and trends .
Expropriation is unlikely. Restrictions on work hours are rigid. vi. Finland is a signatory to the OECD Anti-Bribery Convention. Finland adheres to numerous international agreements concerning the protection of intellectual property. Property Rights Property rights are well protected. Freedom of corruption Corruption is perceived as almost nonexistent. 4) Technological Factors i. The non-salary cost of employing a worker is high. The Council of Europe’s Group of States against Corruption has recommended that Finland sharpen its controls over political financing and increase the transparency of donations to political parties and election candidates.Doesn’t have many changes in lifestyles and trends since Finland are counted as one of the modern countries. and contractual agreements are strictly honored. Educational levels The education levels in Finland are very good where the literacy is 100% for both male and female. Labor Freedom Ranks Burdensome labor market regulations hamper employment opportunities and productivity growth. The average school life expectancy is 17 years. iii. Finland is tied for 5th place out of 179 countries in Transparency International’s Corruption Perceptions Index for 2008. v. The quality of the judiciary and civil service is generally high. iv. Science and Technology . and dismissing an employee can be costly.
at the beginning of its term. ii. The regional innovation base as well as co-operation between business communities and education and research communities will be strengthened through a Centre of Expertise Programme that consists of cluster-based networking. iii. and more than 60. 5) Environmental Factors i. water pollution from industrial wastes. Baltic Sea. Employment Regulations Health and Safety Regulations Trade and Regulations Standards .000 lakes. Research and Development R&D funding will be increased to 4 per cent of Finland’s gross national product. agricultural chemicals. This funding will be allocated to centres of strategic excellence in sectors that are pivotal to the development of the national economy. Current issues Air pollution from manufacturing and power plants contributing to acid rain. which also attracts foreign R&D investments. habitat loss threatens wildlife populations. with the aim of making Finland capable of providing companies with a top-flight innovation environment internationally. ii. 6) Legal Factors i. society and citizens’ welfare. Thus. ii.Technology and innovation policy measures seek to contribute to enhancing the competitiveness of Finnish industry and the well-being of society. Climate Cold temperate and potentially subarctic but comparatively mild because of moderating influence of the North Atlantic Current. Prime Minister Vanhanen’s second government intends to prepare a National Innovation Strategy.
the quality of life is still good because workers in Finland must pay high income taxes where from this taxes. Finland adapt free market in their economy so the demand and supply fluctuate freely and the entry barriers to the country is quite low. Every month government will give them the fund to their bank account. So. law and many more. Besides that.Why do you think Finland tops the chart for overall ranking of the “Best Countries in The World”? Finland tops the chart for overall ranking of the “Best Countries in the World” because it is a small country and the population of the country is small. the government used the taxes to give fund to those who are unemployed. Finland’s trade policy is the same with other members of the European Union. . around 10 weeks in a year the sun will not set during the summer. economy. the climate and weather also take effect to the ranking where the weather is quite calm and because of the geographic area where it is situated far north in the globe. Wealth distribution is also distributed quite equally among the citizens where the gap is not that big among the low income and high income. Besides that. Inflation rate is also low in Finland while unemployment rate is quite high. So. Although the unemployment rate is high in Finland. health. it is easier to manage either in terms administrative.
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue reading from where you left off, or restart the preview.