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    Institute of Management Studies: Davv - Indore

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    Finland has a highly industrialized, largely free-market economy dominated by the services sector. Exports account for over a third of GDP and major exports include machinery, electronics, paper, and chemicals. Major trading partners are Germany, Russia, Sweden, UK, US, and Netherlands. Finland is a member of the EU and uses the euro currency. The economy contracted in recent years but has returned to growth supported by investment, consumption, and net exports. Finland contributes to international organizations like the WTO and IMF and seeks further trade agreements to benefit Finnish companies.

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    Institute of Management Studies: Davv - Indore

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    Finland has a highly industrialized, largely free-market economy dominated by the services sector. Exports account for over a third of GDP and major exports include machinery, electronics, paper, and chemicals. Major trading partners are Germany, Russia, Sweden, UK, US, and Netherlands. Finland is a member of the EU and uses the euro currency. The economy contracted in recent years but has returned to growth supported by investment, consumption, and net exports. Finland contributes to international organizations like the WTO and IMF and seeks further trade agreements to benefit Finnish companies.

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    FINLAND

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    Finland has a highly industrialized, largely free-market economy dominated by the services sector. Exports account for over a third of GDP and major exports include machinery, electronics, paper, and chemicals. Major trading partners are Germany, Russia, Sweden, UK, US, and Netherlands. Finland is a member of the EU and uses the euro currency. The economy contracted in recent years but has returned to growth supported by investment, consumption, and net exports. Finland contributes to international organizations like the WTO and IMF and seeks further trade agreements to benefit Finnish companies.

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    © All Rights Reserved
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    Download as ppt, pdf, or txt
    46 views10 pages

    Institute of Management Studies: Davv - Indore

    Uploaded by

    S
    Finland has a highly industrialized, largely free-market economy dominated by the services sector. Exports account for over a third of GDP and major exports include machinery, electronics, paper, and chemicals. Major trading partners are Germany, Russia, Sweden, UK, US, and Netherlands. Finland is a member of the EU and uses the euro currency. The economy contracted in recent years but has returned to growth supported by investment, consumption, and net exports. Finland contributes to international organizations like the WTO and IMF and seeks further trade agreements to benefit Finnish companies.

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    of 10

    INSTITUTE OF MANAGEMENT STUDIES

    DAVV -INDORE

    INTERNATIONAL FINANCE

    ASSESMENT III

    BUSINESS OVERVIEW OF FINLAND

    SUBMITTED BY:
    SUBMITTED TO:
    RAKESH ATHANKAR (64178)
    DR.YAMINI KARMAKAR ROHIT VARMA ( 64182)
    IMS MBA FA (SEC B)
    SEM IV
    COUNTRY PROFILE

    Full name:
    Republic of Finland
    Capital:
    Helsinki
    Independence:
    6 December,1917 from Russia.
    Population:
    5.5 million
    Area:
    3,38,145sqkm (130,559sq miles)
    Major languages:
    Finnish(89.33%),Swedish(5 .34%)
    Major religion:
    Christianity
    Map of Finland
    MACROECONOMIC OVERVIEW OF FINLAND
    Macroeconomic variable DESCRIPTION

    Currency Euro 
    GDP 25188.49 Crores USD in 2017,in 2018 GDP grew by 2.3%
    Exchange rate 1 Euro= 1.13 USD
    Inflation rate 1.1% as of Jan 2019
    Unemployment rate Finland's unemployment rate dropped to 7.4 percent in February 2019 from 8.6 percent in the same
    month of previous year.
    Employment rate Employment Rate in Finland increased to 70.70 percent in February from 70.60 percent in January of
    2019. 
    Credit ranking AA+ by Fitch
    Aa1 by Moody’s
    AA+ by standard and poor’s
    Trade deficit Euro 60 million till Feb 2019 from EUR 370 Million in Feb 2018
    Foreign exchange reserve 9364 EUR Million in Feb19
    8986 EUR Million in Jan19
    GNP GNP Increased by 51633 EUR Million in 4 TH quarter of 2018 from 50328 EUR Million in the 3 RD
    quarter of 2018.
    MACROECONOMIC OVERVIEW OF
    FINLAND
     Among the world's richest countries, Finland is the third most dedicated to policies that benefit people
    living in poorer nations. Finland is the best country in the world in a comparison of human wellbeing.
     Finland is a member of the European Union which has adopted the euro. The benchmark interest rate
    In the Euro Area was last recorded at 0 percent.
     Finland had been one of the best performing economies within the EU before 2009 and its banks and
    financial markets avoided the worst of global financial crisis. However, the world slowdown hit
    exports and domestic demand hard in that year, causing Finland’s economy to contract from 2012 to
    2014. The recession affected general government finances and the debt ratio. The economy returned to
    growth in 2016, posting a 1.9% GDP increase before growing an estimated 3.3% in 2017, supported
    by a strong increase in investment, private consumption, and net exports.
     Finland has a highly industrialized, largely free-market economy.  Trade is important, with exports
    accounting for over one-third of GDP in recent years. The government is open to, and actively takes
    steps to attract, foreign direct investment. The largest sector of the economy is services at 72.7 percent,
    followed by manufacturing and refining at 31.4 percent.
    MAJOR EXPORT &
    IMPORT OF FINLAND
    MAJOR TRADING PARTNERS: GERMANY, RUSSIA, SWEDEN, UK, US, NETHERLANDS
    AND CHINA.

    EXPORT:-Exports from Finland grew 7 percent from a year earlier to EUR 5.1 billion in February 2019,
    boosted by sales of machinery & equipment, instruments & precision, forest products, oil refinery,
    transport equipment and iron & steel. In contrast, exports fell for copper, nickel, ores and basic
    chemicals.
    Major Export Items: Machinery and electronics, paper and paper products, chemicals

    IMPORT:-Imports to Finland were unchanged from a year earlier at EUR 5.2 billion in February 2019, as
    an increase in purchases of oil refinery & crude oil and aircraft was offset by a decline in imports of
    metals, ores and pharmaceuticals. Imports from the EU rose 3 percent, despite a decrease in purchases
    from Germany and the Netherlands, while those from non-EU countries fell 4 percent.
    Major Import Items: Petroleum, cars, packaged medicaments, and computers.
    MULTINATIONAL COMPANIES IN
    FINLAND
    Metso (miscellaneous industrial equipment)
    Neste Oil (oil, gas)
    Nokia (communications equipment)
    Outokumpu (iron, steel)
    Stora Enso (paper, paper products)
    UPM- Kymmene (paper, paper products)
    Wärtsilä (heavy equipment)
    Altia (alcoholic beverages)
    Fiskars (scissors, gardening tools, kitchenware)
    HKScan (meat products)
    Kemira Oyj (chemicals)
    MEMBERSHIP OF INTERNATIONAL BODIES

    Sr. ORGANIZATION NAME MEMBER SINCE


    No
    1 WORLD TRADE ORGANIZATION 1 JANUARY 1995 
    2 INTERNATIONAL MONETARY FUND JANUARY 14, 1948
    3 ORGANIZATION FOR ECONOMIC COOPERATION AND 28 JANUARY 1969
    DEVELOPMENT
    4 UNITED NATIONS 4 DECEMBER 1955
    5 EUROPEAN  UNION 1 JANUARY 1995. 
    6 ORGANIZATION FOR SECURITY AND CO-OPERATION IN 3 JULY 1973,
    EUROPE
    POLITICAL MILIEU OF FINLAND
     Finland is a Democratic Republic.
     The President of Finland is the Head of State, leader of foreign policy, and the Commander-in-Chief of the Defence
    Forces. The President appoints the Prime Minister. The main executive power lies in the Cabinet which is appointed and
    headed by the Prime Minister. 
     Government Action Plan 2018–2019:-The Government has made decisions about reforms through five strategic
    priorities .

    FIVE STRATEGIC PRIORITIES EXPECTED REFORMS


    Employment and competitiveness the availability of skilled labour, facilitating lifewide learning,

    Knowledge and education Improved access to art and culture,Closer cooperation between higher education
    institutions and business life to bring innovations to the market

    Bio economy and clean solutions Towards carbon-free, clean and renewable energy in a cost-efficient way, adoption of
    clean solutions
    Health and wellbeing Health and wellbeing will be fostered and inequalities reduced, Home care for older
    people will be developed and better informal care for all age groups
    Digitalisation, experimentation and deregulation Digitalised public services, growth environment for digital business
    operations,Streamlined legal provisions
    CONTRIBUTION IN INTERNATIONAL
    TRADE
    Finland is the 40th largest export economy in the world and the 8th most complex economy
    according to the Economic Complexity Index (ECI).In 2017, Finland exported $70.7B and
    imported $65.4B, resulting in a positive trade balance of $5.26B.
    Finland's trade deficit narrowed to EUR 60 million in February 2019 from EUR 370 million
    in the same month a year earlier, as exports grew 7 percent to EUR 5.1 billion,
    The government of Finland is contributing EUR 1.7 million to WTO trade-related
    programme’s to help developing countries and in particular least-developed countries
    (LDCs) participate in multilateral trade negotiations and better access global markets.
    EUR 200,000 of Finland's contribution will go to the Trade Facilitation Agreement
    Facility (TFAF). The Facility was created at the request of developing and least-
    developed country (LDC) members to help ensure that they receive the assistance
    they need to reap the full benefits of the Trade Facilitation Agreement (TFA)
     Finland has donated approximately over CHF 15 million to WTO trust funds over
    the last 17 years.The European union makes more than 60 % of Finland total trade .
    FUTURE IN INTERNATIONAL
    TRADE
    EU-Japan trade agreement entered into force on February 1st 2019. EU trade
    agreements also benefit Finnish companies.
    The Union Cabinet Of INDIA has approved the MoU between India and Finland for
    collaborating based on mutual interest in the field of Biotechnology.
    Mercedes Benz Recently announced that start of production of the
    new, 4thGeneration Mercedes-Benz A-Class at Valmet Automotive’s Uusikaupunki,
    Finland plant.
    Finland has a great deal to offer international companies. Foreign direct investment in
    Finland is often related to knowledge-driven business. 
    Finland has an outstanding infrastructure. Whether you are talking about IT
    networks, electricity supply or transport, it just works in Finland. Finland’s power
    generation, transmission and distribution systems are highly efficient and the price of
    electricity is among the lowest in Europe.

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