Name : Ameer Shafiq bin Kamalullail

Team Task 1 (6)

Question :
Conduct a PESTEL analysis for China and Finland. Why do you think Finland tops the
chart for overall ranking of the ~Best Countries in the World?
What is PESTEL ?
PESTEL analysis is a tool or a Iramework used by certain individual to analyze diIIerent macro-
environmental Iactors where these Iactors may eIIect their business strategy or also the stability
oI a nation. PESTEL stands Ior 6 diIIerent Iactors that are known as Political Iactors, Economy
Iactors, Social Factors, Technological Iactors, Environmental Iactors and also Legal Iactors.
Political Iactor reIers to the degree oI government intervention in the nation economy where this
may vary among nation where diIIerent nation conduct diIIerent type oI economy such as Iree
economy, control economy or Iree market. The government may also impose policies in
conducting the economy. Economic Iactor reIers to the economy component such as economic
growth, interest rates, exchange rates and also inIlation rate where these Iactors would impact
how the business or nation operate and make decision. Social Iactor reIers to cultural aspects or
changes in social trends that can impact the eIIiciency and productivity oI working in an
organization or in a nation. As an example, health, growth rate, age distribution, career attitudes
and emphasis on saIety in an area. Technological Iactor reIers to the changes oI technology to a
community where these changes can aIIect liIestyles, cost oI production, eIIiciency and
productivity oI working entity, and standard oI living oI a nation. From technological Iactors we
can determine what is the barrier to entry a nation or an economy activity. Environmental Iactor
reIers to the climate oI the area, weather, and also geographic area where these Iactors vary
among nation. Lastly, legal Iactor reIers to the law abiding Irom unethical actions either to
protect the environment, workers, organizations or the nation economy. Example oI common
laws used globally is consumer law, labour law, health and saIety law, discrimination law and
many more. So, this Iramework known as PESTEL is very useIul to analyze a certain events or
problems in a large Iramework or in another word, Irom a large point oI view to identiIy the
diIIerent 6 macro-environmental Iactors. The outcomes Irom these analyses are we can construct
plans, strategies, predict either the business growth or the economy and list down the
consequences that aIIect the business perIormance based Irom the Iactors.
A brieIly examples oI PESTEL Iactors
1) Political factors Stability oI government, social policies, trade
regulations, tax policies and entry mode regulations

2) Economic factors InIlation, interest rates, exchange rates, and economic growth
3) Social factors Health, growth rate, age distribution, career attitudes and
emphasis on saIety

4) Technological factors R&D activity, automation, technology incentives and rate oI
technological change

5) Environmental factors Attitudes towards the environment ( in terms oI demand and
supply Ior product, pollution or conserving the nature), climate,
weather and natural disaster.

6) Legal factors Employment regulations, competitive regulations, product
regulation, and health and saIety regulations.








PESTEL analysis for China
Outlined below is the PESTEL analysis Ior China as a whole.
1) Political Factors
i. Constitutional System
China or People`s Republic oI 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 oI 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 oI 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 oI the China government is quite moderate and stable because the
administration oI the government are not publicize to the public either through the
press or on the internet. So, the degree oI the citizen involvement in the politics is low
because oI the heavy restrictions impose by the government. However, the policies
impose and the law regulations are quite eIIective in terms oI economy where China is
one oI 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 manuIacturing
sectors because oI the cheap labor in China. But still problems such as managing
environmental degradation, demographic pressure and the extreme immigration Irom
rural to urban area must be Iaced by the government.

iii. Business Freedom
The business Ireedom in China is quite tight because oI the regulation impose by the
government where they restrict businesses Irom 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 Irom the Iilling Ior insolvency in court until
the resolution oI distressed assets. Examples oI business Ireedom in China are
supermarketization and opening market to Ioreign multinationals company because oI
the entry oI China into WTO. Supermarketization is where the government shuts down
the traditional 'wet market and transIorm them into supermarket.



iv. Trade Freedom
In the past Iew decades, China loosen their trade policy to the outside world in their
trading, export and import industry. China`s weighted average tariII rate was 3.9
percent in 2008 based Irom the web (heritage.org). Factors that aIIect the cost oI trade
Ireedoms are import and export bans and restrictions, import and export licensing,
non-transparent tariII classiIications, complex regulations and standards, subsidies,
state trading in certain goods, services market restrictions, issues involving the
protection oI intellectual property rights, and inconsistent and corruption-prone
customs administration add to the cost oI trade. So, China`s trade Ireedom score to
account Ior non-tariII barriers deducted about twenty points.

v. Tax Policies
Below are the economic data Ior China.
TariII Rate 3.9
Income Tax Rate 45.0
Corporate Tax Rate 25.0
GDP (billion) 7900
GDP per Capita 5962
Unemployment Rate 4.2
InIlation Rate 5.9
FDI InIlow (millions) 108300
Tax Burden GDP 18.3
Government Expenditure GDP 19.9
Population (billions) 1300

Based on the rates and statistic given, we can see that China has moderate Corporate
Tax Rate and high Income Tax rate. The government encourages more new-
technology business in the market besides allowing Ioreign institution enters the nation
Iinancial institution in providing Ioreign currency. Because oI lower corporate tax rate,
many MNC started to open their business in China and the numbers oI FDI have
increased rapidly. Furthermore, on October 2008, new policies impose where
individual income tax is no longer paid on interest on bank deposits. The overall tax
revenue as a percentage oI GDP was 18.3 based on what recorded in the recent years.






















) Economic Factors
Economic Freedom Score 51.0

Population - 1.3 billion
GDP (PPP) -
O 7.9 trillion
O 9.0 growth
O 11.0 5-year compound annual growth
O 5962 per capita

TariII Rate 3.9
Income Tax Rate 45.0
Corporate Tax Rate 25.0
GDP (billion) 7900
GDP per Capita 5962
FDI InIlow (millions) 108300
Tax Burden GDP 18.3
Government Expenditure GDP 19.9

Unemployment - 4.2
InIlation (CPI) - 5.9
FDI InIlow - 108.3 billion

Economic Freedom vs World Average

i. Disposable income of buyers
ii. Credit accessibility
The government has directly and indirectly controls their banks and Iinancial
institution. Investment done in China are also control and regulated because oI their
judicial system is very vulnerable to the political issues and inIluence

iii. &nemployment rates
Labor Iorce - 812.7 million
Labor Iorce by occupation -
a) agriculture (39.5)
b) industry (27.2)
c) services (33.2)
Unemployment rate - 4.2 (2008 est.)

*OIIicial data Irom urban area only.
*Including migrants may boost total unemployment to 9.
*Substant ial unemployment and underemployment in rural areas.
$ource from www. cia.gov



iv. Fiscal Freedom
China has moderate Corporate Tax Rate and high Income Tax rate. The government
encourages more new-technology business in the market besides allowing Ioreign
institution enters the nation Iinancial institution in providing Ioreign currency. Because
oI lower corporate tax rate, many MNC started to open their business in China and the
numbers oI FDI have increased rapidly. Furthermore, on October 2008, new policies
impose where individual income tax is no longer paid on interest on bank deposits.
The overall tax revenue as a percentage oI GDP was 18.3 based on what recorded in
the recent years.

v. onitory Freedom
From 2006 until 2008, the inIlation rate is around 5.2 where it is consider moderate
Ior that particular percentage. As what mention where China economic Ireedom score
is around 51 Irom the Iull score 100. So, we can see that the economic is a mixture oI
Iree market and control market. The price oI product sold can be determined by the
quantity demanded oI the product. But still the government intervenes on certain
goods and products to maintain stability oI the prices. The government also gives
subsidies to small business and industry to compete with Ioreign goods where they can
sell at lower prices.

vi. nvestment Freedom
China`s Foreign Investment Catalogue describe that diIIerent Ioreign investment are
group under diIIerent types such as encouraged, prohibited, restricted and permitted
China laws and regulatory are non-transparency, complex and inconsistently enIorced
laws and regulations, weak protection oI intellectual property rights, corruption,
industrial policies protecting local Iirms, and a legal system that cannot guarantee the
sanctity oI contracts where these must be Iace by the Ioreign investor. Financial
transactions are also tightly regulated.



vii. Financial Freedom
The Iinancial systems in China are control directly to the government and it is tightly
controlled. In China, there are supervIsed rougIIy ,6oo IInuncIuI InsLILuLIons In zoo8 und
CIInu Ius onIy Lwo prIvuLe bunks wIIIe LIere ure Iour sLuLe-owned bunks uccounL Ior over o
percenL oI LoLuI usseLs. TIIs IInuncIuI sysLem Is conLroI und supervIsed by The China Banking
Regulatory Commission.

viii. nterest rates
Central bank discount rate - 2.79
Commercial prime lending rate - 5.31

ix. nflation
InIlation rate - 5.9 (2008 est.) and -0.7 (2009 est.)
InIlation rate decline vastly Irom 2008 until 2009 because oI the stable currency oI
China.
















) Social Factors
Population : 1.34 billion (2009 est.)
Population growth rate : 0.66 (2009 est.)
Population Below Poverty Line : 2.00 (2009 est.)
nfant mortality rate : 20.25 deaths per 1,000 live births (2009 est.)
Life expectancy at birth :
total population: 71.44 years
male: 69.71 years
Iemale: 73.26 years
(2004 est.)
Total fertility rate : 1.79 children per woman (2009 est.)
Ethnic groups : Han Chinese 91.5, Zhuang, Manchu, Hui, Miao,
Uyghur, Tujia, Yi, Mongol, Tibetan, Buyi, Dong, Yao, Korean, and other nationalities 8.5
(2000 census)
Nationality : noun: Chinese (singular and plural) adjective:
Chinese
Religions : Daoist (Taoist), Buddhist, Christian 3-4,
Muslim 1-2 note: oIIicially atheist (2002 est.)
Languages : Standard Chinese or Mandarin (Putonghua, based
on the Beijing dialect), Yue (Cantonese), Wu (Shanghainese), Minbei (Fuzhou), Minnan
(Hokkien-Taiwanese), Xiang, Gan, Hakka dialects, minority languages (see Ethnic groups entry)
Literacy :
total population: 90.92
male: 95.14
Iemale: 86.53
(2004 est.)
H'ADS - Adult Prevalence Rate: 0.10 (2009 est.)
$ource from http.//globaledge.msu.edu/countries/china/statistics/


i. Distribution of Wealth
Distribution oI income or consumption by percentage share :
Lowest 10 : 1.80
Lowest 20 : 4.66
Second 20 : 9.00
Third 20 : 14.22
Fourth 20 : 22.13
Highest 10 : 33.06
Highest 20 : 49.99
$ource from http.//globaledge.msu.edu/countries/china/statistics/
China has an extreme gap between the lowest 20 and the highest 20 aIter 60 years
China change their system in their economy.
ii. Changes in lifestyles and trends
LiIestyles and trends in China change in many ways such as the level oI consumption,
attitude towards new product especially Irom the west, changes in the quality oI liIe,
and also changing Irom quantity satisIaction to quality satisIaction. Besides that,
changes in trends can be seen Irom the degree oI Iashion sense where citizen tend to
buy more colourIul and striking colours compare dull- coloured clothes.
iii. Educational levels
The literacy rate Ior China is around 91.0 was able to read and write at a speciIied
age. While the average years oI schooling is 11.2 year. Education expenditures in
China is about 1.9 oI the GDP.
iv. Labor Freedom Ranks
China`s labor regulations hinder overall employment and productivity growth. The
non-salary cost oI employing a worker is high. Dismissing an employee may require
prior consultation with the local labor bureau and labor union.
v. Freedom of corruption
Corruption is perceived as widespread. China ranks 72nd out oI 179 countries in
Transparency International`s Corruption Perceptions Index Ior 2008. Corruption
aIIects banking, Iinance, government procurement, and construction most severely,
and there is a lack oI independent investigative bodies and courts.
vi. Property Rights
China`s judicial system is weak, and many companies resort to arbitration. Local
oIIicials can ignore court decision with impunity. All land is state-owned, but
individuals and Iirms may own and transIer long-term leases (subject to many
restrictions) as well as structures and personal property. Intellectual property rights are
not enIorced eIIectively. Copyrights, patents, brand names, trademarks, and trade
secrets are routinely stolen.












) Technological Factors

i. Science and Technology
Through the period, the achievement oI science and technology in China are
remarkable where they manage to achieve many discoveries in the science Iield. The
major achievements are the discovery oI the Daqing OilIield, building the Iirst atomic
reactor, successIul testing oI atom and hydrogen bombs, synthesis oI crystalline
insulin, positron and negatron electronic collider, nuclear power stations, carrier
rockets, and satellite launching technology. Rapid improvement in science and
technology also create more jobs in the manuIacturing industry and also make the
quality oI liIe better and easier.
ii. Research and Development
The government design many plans and strategies in developing the R&D industry.
Many programs to enhance R&D industry are launched such as the 'Torch Program
and the ' Scaling Heights Program

5) Environmental Factors

i. Environmental Protection Laws
The government takes serious matter on protecting the environment where they
impose many regulations and laws in protecting, preventing and controlling industrial
pollution and improving urban environment. The government also collaborate with
many NGO`s in order to maintain the mother nature.




6) Legal Factors

i. Employment Regulations
China`s labor regulations hinder overall employment and productivity growth. The
non-salary cost oI employing a worker is high. Dismissing an employee may require
prior consultation with the local labor bureau and labor union.
















PESTEL analysis for Finland
Outlined below is the PESTEL analysis Ior Finland as a whole.
1) Political Factors

i. Constitutional System

Finland joined the European Union in 1995 and adopted the euro as its currency in
1999. The country is sparsely populated, with about one-Iourth oI its land mass above
the Arctic Circle, but boasts a modern, competitive, and transparent economy with
vibrant inIormation and communications technology sectors.
ii. Stability of Government.
The modern and competitive Finnish economy has long beneIited Irom high levels oI
economic Ireedom. The economy remains a world leader in business Ireedom, trade
Ireedom, property rights, and Ireedom Irom corruption. Private enterprises continue
to blossom and promote innovation in an eIIicient regulatory and legal environment.
With prudent and sound banking practices, the Iinancial sector has weathered the
global Iinancial turbulence relatively well. Finland`s overall high level oI economic
Ireedom is curbed by high government spending and the rigidity oI the labor market.
As in many other European social democracies, high government spending (close to
halI oI Finland`s GDP) supports an extensive welIare state. Restrictive labor
regulations undermine employment and productivity growth. Previously robust
economic growth slowed in 2009 due to the global recession, and Finland, like many
other European nations, Iaces demographic challenges in the Iorm oI an aging
population and shrinking workIorce that could threaten Iuture growth and the
government`s ability to maintain generous social spending programs. Finland became
a member oI NATO`s Partnership Ior Peace program in 1994 but has not pursued Iull
NATO membership because oI its neutral military status.


iii. Business Freedom
The overall Ireedom to start, operate, and close a business is strongly protected under
Finland`s regulatory environment. Starting a business takes an average oI 14 days,
compared to the world average oI 35 days. Obtaining a business license requires
much less than the world average oI 18 procedures and 218 days. Bankruptcy is
straightIorward and not costly.
iv. Trade Freedom

Finland`s trade policy is the same as that oI other members oI the European Union.
The common EU weighted average tariII rate was 1.3 percent in 2008. However, the
EU has high or escalating tariIIs Ior agricultural and manuIacturing products and its
MFN tariII code is complex. Non-tariII barriers reIlected in EU and Finnish policy
include agricultural and manuIacturing subsidies, quotas, import restrictions and bans
Ior some goods and services, market access restrictions in some services sectors, non-
transparent and restrictive regulations and standards, and inconsistent regulatory and
customs administration among EU members. Ten points were deducted Irom
Finland`s trade Ireedom score to account Ior non-tariII barriers.

v. Tax Policies
Below are the economic data Ior Finland.

TariII Rate 1.3
Income Tax Rate 30.5
Corporate Tax Rate 26.0
GDP (billion) 188.2
GDP per Capita 35427
Unemployment Rate 6.4
InIlation Rate 3.9
FDI InIlow (millions) -4200
Tax Burden GDP 43.1
Government Expenditure GDP 47.3
Population (billions) 5.3

Finland has moderate tax rates but a relatively high level oI overall taxation. The top
income tax rate is 30.5 percent, with municipal rates between 16.5 percent and 20
percent. The top corporate tax rate is 26 percent. Other taxes include a value-added
tax (VAT), an inheritance tax, and a Ilat 28 percent tax on capital income. In the most
recent year, overall tax revenue as a percentage oI GDP was 43.1 percent.

) Economic Factors
Economic Freedom Score - 73.8

Population - 5.3 million
GDP (PPP) -
188.2 billion
0.9 growth
3.2 5-year compound annual growth
35,427 per capita

TariII Rate 1.3
Income Tax Rate 30.5
Corporate Tax Rate 26.0
GDP (billion) 188.2
GDP per Capita 35427
Tax Burden GDP 43.1
Government Expenditure GDP 47.3
Population (billions) 5.3


Unemployment - 6.4
InIlation (CPI) - 3.9
FDI InIlow - -4200.0 million


Economic Freedom vs World Average

i. &nemployment rates
Labor Iorce - 2.678 million
Labor Iorce by occupation -
Agriculture and Iorestry: 4.5
Industry: 18.2
Construct ion: 7.3
Commerce: 15.9
Finance, insurance, and business services: 14.5
Transport and communicat ions: 6.9
Public services: 32.7
Unemployment rate - 6.4



ii. Fiscal Freedom
Finland has moderate tax rates but a relatively high level oI overall taxation. The top
income tax rate is 30.5 percent, with municipal rates between 16.5 percent and 20
percent. The top corporate tax rate is 26 percent. Other taxes include a value-added tax
(VAT), an inheritance tax, and a Ilat 28 percent tax on capital income. In the most
recent year, overall tax revenue as a percentage oI GDP was 43.1 percent.
iii. onitory Freedom
Finland uses the euro as its currency. Between 2006 and 2008, Finland`s weighted
average annual rate oI inIlation was 3.1 percent. As a participant in the EU`s Common
Agricultural Policy, the government subsidizes agricultural production, distorting the
prices oI agricultural products. It also imposes artiIicially low prices on
pharmaceutical products. Ten points were deducted Irom Finland`s monetary Ireedom
score to account Ior measures that distort domestic prices.
iv. nvestment Freedom

Finland is open to Ioreign direct investment. Certain acquisitions oI large companies
may require Iollow-up clearance Irom the Ministry oI Trade and Industry. Non
European Economic Area investors must apply Ior a license to invest in security,
electrical contracting, alcohol, telecommunications, aviation, and restaurants.
Regulation is relatively transparent and eIIicient. There are no exchange controls and
no restrictions on current transIers or repatriation oI proIits, and residents and non-
residents may hold Ioreign exchange accounts. Restrictions on the purchase oI land
apply only to non-residents purchasing land in the Aaland Islands.

v. Financial Freedom

Finland`s sophisticated Iinancial system provides a wide range oI services, guided by
sound regulations and prudent lending. There are more than 300 domestic banks, but
three bank groups (Nordea, OP Bank Group, and the Sampo Group) dominate the
system. The government owns about 14 percent oI the Sampo Group. Banking is open
to Ioreign competition, and about 60 percent oI assets are Ioreign-owned. Capital
markets determine interest rates, and credit is available to nationals and Ioreigners.
The stock exchange is part oI a BalticNordic exchange network. Merger oI the
Financial Supervision Authority and Insurance Supervisory Authority came into Iorce
in January 2009. The impact oI the global Iinancial turmoil on the banking sector has
been relatively muted.

vi. nterest rates
Central bank discount rate -
1.75 (31 December 2009) and 3 (31 December 2008)
* this is the European Central Bank's rate on the marginal lending Iacilit y,
which oIIers overnight credit to banks in the euro area

Commercial bank prime lending rate -
3.51 (31 December 2009)
5.79 (31 December 2008)
vii. nflation
InIlation rate -
0 (2009 est.)
4.1 (2008 est.)






) Social Factors

Population : 5.25 million (2009 est.)
Population growth rate : 0.10 (2009 est.)
Population below Poverty Line : 0.00 (2009 est.)
nfant mortality rate : 3.47 deaths per 1,000 live births (2009 est.)
Life expectancy at birth :
Total population: 78.71 years
male: 75.30 years
Iemale: 82.30 years
(2004 est.)
Total fertility rate : 1.73 children per woman (2009 est.)
Ethnic groups : Finn 93.4, Swede 5.6, Russian 0.5, Estonian 0.3, Roma
(Gypsy) 0.1, Sami 0.1 (2006)
Nationality : noun: Finn(s) adjective: Finnish
Religions : Lutheran Church oI Finland 82.5, Orthodox Church 1.1,
other Christian 1.1, other 0.1, none 15.1 (2006)
Languages : Finnish 91.2 (oIIicial), Swedish 5.5 (oIIicial), other 3.3
(small Sami- and Russian-speaking minorities) (2007)
Literacy:
total population: NA
male: NA
Iemale: NA
H'ADS - Adult Prevalence Rate : 0.10 (2009 est.)
$ource from http.//globaledge.msu.edu/countries/finland/statistics/

i. Distribution of Wealth
Household income or consumption by percentage share:
lowest 10 : NA
lowest 20 : NA
second 20: NA
third 20 : NA
Iourth 20 : NA
highest 10: NA
highest 20: NA

ii. Changes in lifestyles and trends
Doesn`t have many changes in liIestyles and trends since Finland are counted as one
oI the modern countries.

iii. Educational levels
The education levels in Finland are very good where the literacy is 100 Ior both
male and Iemale. The average school liIe expectancy is 17 years.

iv. Labor Freedom Ranks
Burdensome labor market regulations hamper employment opportunities and
productivity growth. The non-salary cost oI employing a worker is high, and
dismissing an employee can be costly. Restrictions on work hours are rigid.

v. Freedom of corruption
Corruption is perceived as almost nonexistent. Finland is tied Ior 5th place out oI 179
countries in Transparency International`s Corruption Perceptions Index Ior 2008.
Finland is a signatory to the OECD Anti-Bribery Convention. The Council oI Europe`s
Group oI States against Corruption has recommended that Finland sharpen its controls
over political Iinancing and increase the transparency oI donations to political parties
and election candidates.






vi. Property Rights
Property rights are well protected, and contractual agreements are strictly honored.
The quality oI the judiciary and civil service is generally high. Expropriation is
unlikely. Finland adheres to numerous international agreements concerning the
protection oI intellectual property.

) Technological Factors

i. Science and Technology

Technology and innovation policy measures seek to contribute to enhancing the
competitiveness oI Finnish industry and the well-being oI society, with the aim oI
making Finland capable oI providing companies with a top-Ilight innovation
environment internationally, which also attracts Ioreign R&D investments. Thus, at the
beginning oI its term, Prime Minister Vanhanen`s second government intends to
prepare a National Innovation Strategy.

ii. Research and Development
R&D Iunding will be increased to 4 per cent oI Finland`s gross national product. This
Iunding will be allocated to centres oI strategic excellence in sectors that are pivotal to
the development oI the national economy, society and citizens` welIare. The regional
innovation base as well as co-operation between business communities and education
and research communities will be strengthened through a Centre oI Expertise
Programme that consists oI cluster-based networking





5) Environmental Factors

i. Climate
Cold temperate and potent ially subarct ic but comparat ively mild because
oI moderat ing inIluence oI the North At lant ic Current, Balt ic Sea, and
more than 60,000 lakes.

ii. Current issues
Air pollut ion Irom manuIacturing and power plants contribut ing to acid
rain, water pollut ion Irom industrial wastes, agricultural chemicals;
habitat loss threatens wildliIe populat ions.

6) Legal Factors

i. Employment Regulations
ii. Health and Safety Regulations
iii. Trade and Regulations Standards














Why do you think Finland tops the chart for overall ranking of the ~Best Countries in The
World?

Finland tops the chart Ior overall ranking oI the 'Best Countries in the World because it is a
small country and the population oI the country is small. So, it is easier to manage either in terms
administrative, economy, health, law and many more. Finland adapt Iree market in their
economy so the demand and supply Iluctuate Ireely and the entry barriers to the country is quite
low. Besides that, Finland`s trade policy is the same with other members oI the European Union.
InIlation rate is also low in Finland while unemployment rate is quite high. Although the
unemployment rate is high in Finland, the quality oI liIe is still good because workers in Finland
must pay high income taxes where Irom this taxes, the government used the taxes to give Iund to
those who are unemployed. Every month government will give them the Iund to their bank
account. 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, the climate and weather also
take eIIect to the ranking where the weather is quite calm and because oI the geographic area
where it is situated Iar north in the globe. So, around 10 weeks in a year the sun will not set
during the summer.













Reference

http.//www.heritage.org
https.//www.cia.gov
http.//globaledge.msu.edu
http.//www.newsweek.com
http.//www.china.org.cn