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Final Artifact

Yulissa Vargas

South Texas College

OPMG-4353-KV1-International Business Seminar-CBE

Instructor: Laura Garcia

December 7, 2023
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Introduction

Finland has a population of over five million. For the most part the population has

remained about the same the increase over the years has not been significant. This has kept the

country from overcrowding and having serious issues like limited recourses for the people

affecting the economy. Although the country is smaller compared to other it provides enough for

the population to have a sustainable lifestyle.

Finland has some of the most beautiful landscape and the weather is cold most of the time. This

a very touristic place due to its beauty and residents there are the happiest compared to other

countries. The population in Finland is predominantly Christian according to World atlas 70% of

the people are Christian (Anittila, 2013). Overall, the Country is a developed Country with a

good economic system. It is the Country that spends the most money on art per capita making it

the perfect Country to establish an art and pottery business. Everyone is spending at least $90 on

art every year.

Political, Economic, and Legal Factor

Finland is a parliamentary Republic under the 1999 Constitution. The Head of State is the

President of the Republic, and the Government is led by a Prime Minister. The president is

elected every 6 years. It is also considered a decentralized government and it has three forms of

governance: central regional and local. This form of government has limited power similar to the

local government system that is used in the United States. Parliament: The highest elected body

President is responsible for foreign policy, prime minister heads the cabinet, which has most

executive power, local government decentralized and includes municipal self-government,

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independent courts are part of the administration, and the state administration Includes central,

regional, and local administration.

The economic status is stable. Finland has traditionally been a small open economy with a large

export sector in relation to GNP. Finland's economy is characterized by a prominent level of

industrialization and a market that is largely free. Finland’s economy is characterized by

openness and transparency and benefits from open-market policies that support dynamic trade

and investment (Virtanen, 2015). They also incentivize businesses that come overseas to

encourage the establishment of new businesses so that there are more jobs and services available,

and the economy grows. Finland is also known for its quality of life. They scored highly on

almost every index on the quality-of-life report. Finland scores highest in water and sanitation

and personal rights (Jarvinen, 2020).

To start a business in Finland, you may need to consider the legal factors like residence

permit: You may need a residence permit for entrepreneurship or a start-up residence

permit. You must apply for a residence permit before you come to Finland. Although the laws

are lenient when it comes to the economic development, individuals must go through a rigorous

and lengthy process to be allowed to establish a business. You may need to select a company

form this way your business is recognized as an entity and can begin to pay taxes on what is

owed to the government. The most common company structure is a limited company. Other

business forms include Sole trader (TMI), General partnership (AY), Limited partnership (KY),

and Cooperative (OSK). Foreign investors in Finland have equal access to the same range of EU

and government incentives as domestic Finnish companies. Finland welcomes and encourages

foreign direct investment. Some of the Incentives they can offer are start-up grants, guarantees,
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subsidized loans, state-guaranteed financing, and tax deductions. The economy and legal factors

make Finland a good Country to establish.

Analysis

The analysis will be based on Gross domestic product (GDP), Purchasing power parity

(PPP), Human development index (HDI), Human poverty index (HPI), and Gender-related

development index (GDI). Finland's GDP per capita was $50,537 in 2022. This ranks Finland

48th among major economies. Finland's economic output per capita is similar to other Western

European economies, such as Germany, Austria, and Sweden (Laine, n.d).

Finland's economy is a mixed economy that combines a free market with a Nordic welfare state

model. The country's largest sector is its service sector, which contributes 72.7% to the country's

GDP. The other sectors are:

 Manufacturing and refining at 31.4%

 Primary sector at 2.9%

Finland's Industries Include

 Metal industry

 Chemical industry

 Forest industry

 Food, alcohol, and tobacco industries

 Other manufacturing

 Mining
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 Textile and leather industry

Finland's GDP is forecast to increase by 57.1 billion US dollars between 2023 and 2028. This

would bring the GDP to 362.83 billion US dollars in 2028.

Here is information about Finland's purchasing power:

 Purchasing power parity (PPP): In 2022, Finland's PPP was 0.8 LCU per international

dollar.

 Purchasing power per capita: In 2022, Finland's purchasing power per capita was 23,913

Euro.

 GDP per capita: In 2022, Finland's GDP per capita was 49,586.41 US dollars.

Finland's Purchasing Power is Improving Due to

 Lower inflation

 Negotiated wage increases.

 Index adjustments to social benefits

Finland's GDP in 2022 was 50,537 US dollars per capita, or 280.83 billion US dollars for the

whole country. This ranks Finland 48th among major economies.

Finland's Human Development Index (HDI) is 0.94, which ranks the country 11th in the

world. The HDI for Finland has been consistently high.

Finland's HDI has increased from 0.87 in 2001 to 0.94 in 2020, growing at an average annual

rate of 0.39%. The average HDI for Finland from 1980 to 2021 was 0.872 points. The minimum

was 0.752 points in 1980 and the maximum was 0.94 points in 2021.
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The UN and the IMF classify Finland as a high developed economy. Finland is also a high-

income country with an average annual income of $54,360.

Finland has the second lowest poverty rate in OECD countries. OECD, Poverty rate. Finland has

the fifth lowest income differences in OECD countries.

Finland's poverty rate is 14.0%, which is close to the OECD average of 13.8%. In 2021, the

Multidimensional Poverty Headcount Ratio for Finland was 14.200%. The at-risk-of-poverty rate

in Finland was 12.7% in 2021.

In Finland, a household is considered at risk of poverty if its income is less than 60% of the

national median disposable income. In 2020, the median disposable cash income for household-

dwelling units was EUR 26,227 per consumption unit.

Finland's Gender Equality Index (GEI) score in 2022 was 75.4 out of 100 points. This placed

Finland fourth in the European Union (EU). Finland's score is 6.8 points higher than the EU's

average. Since 2010, Finland's score has increased by 2.3 points.

The GEI measures gender equality in several areas, including Healthcare, Labor market, Power.

Finland's gender equality progress is slower than the EU average. However, Finland's scores

have improved in the areas of work and health.

Finland's Gender Mainstreaming Approach has around fifty targets and measures. These targets

include:

 Education

 Financial equality

 Family life
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 Working life

 Violence against women

 Intimate partner violence

 Improving the status of gender minorities

Recommendation/Conclusion

If we look at the statistics, although Finland is a small country, it has an enormous

amount of potential and it would be a smart choice to establish the business there due to its

interest in art and economic system. It has a prosperous economy, and they welcome and

incentivize new businesses. If we look at the economy, legal and political system we can

concluded that there are more opportunities than threats. And since the Country is small there are

not as much competition within the country itself if we were to establish. But it is important to

keep an eye for the kind of import goods that they get so that we can always come up with

strategies that will keep the business running smoothly. Overall, we must Finland is a great

Country to live and to establish a business (Korhonen, 2018).

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References

Division of Powers - Finland. division of power. (n.d.).

https://portal.cor.europa.eu/divisionpowers/Pages/Finland.aspx

Finland. Finland Economy: Population, GDP, Inflation, Business, Trade, FDI, Corruption. (n.d.-

b). https://www.heritage.org/index/country/finland#:~:text=Finland’s%20economy%20is

%20characterized%20by,tolerance%20of%20corruption%20is%20minimal

GDP (current US$) - finland. World Bank Open Data. (n.d.).

https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?locations=FI

National Justice Systems. European e-Justice Portal. (2014, September 9). https://e-

justice.europa.eu/16/EN/national_justice_systems?FINLAND&member=1

Your Official Finland Travel Guide: Visit Finland. Your Official Finland Travel Guide | Visit

Finland. (n.d.). https://www.visitfinland.com/en/