Philips Healthcare Export Planning Project
Table Of Contents
1. General Characteristics
2. Norway’s Economic Structure
2.1 The output structure
2.2 Current account characteristics
3. Current and foreseeable macroeconomic situation
3.1 Macro Economic Indicators
3.2 Economic crisis
4. Special Issues
5. The Country Risk Index for Philips Patient Monitors in Norway
5.1 The Country Risk Index
5.1.2 Government Expenditure
5.1.3 Exchange Rate
5.1.4 Interest rate
6. Conclusion and Advice
7. Appendix 1, The Dutch Labour market
8. Other Appendixes
9. List of references
Krone falls sharply after Norway cuts rates
Summary of the Article:
1. General Characteristics
Geographic, demographics and climate
Norway is situated in the western and northern parts of the Scandinavian Peninsula in northern Europe, with 324,220 km², 7 times bigger than the Netherlands with 41,526 km². It is ranked as the third richest country in the world with a GDP PPP of 52 964 (2010 est. current international dollars). Norway is even richer than the Netherlands which is ranked number 9 with a GDP PPP of 40 601. And the most important economic region in Norway, to be considered for Export opportunities are Oslo, the capital (pop. 599,230), Bergen (260,392 pop), Trondheim (pop. 173,486), And Stavanger (126,021).
For years, Oslo has been on the spotlight for export opportunity because of its great potential economic wise. However recently, Stavanger is becoming the most attractive region and also currently known as the richest, which accounts for approximately 70% of the country’s total Gross National Product. And even SSB reported that 41% of the households in Stavanger could claim after-tax income of more than NOK 550,000 (around USD 100,000 at current exchange rates). While in the Norwegian capital of Oslo, by comparison, 27% of households had such income, while 30% of households in Trondheim and 32% in Bergen could report the same.
Additionally Norway is populated 4. 9 mil (2012 est.), with a population growth rate of 1.16%, in comparison to the Netherlands which has a population of over 16 million, 3 times more than Norway, but with a lower growth rate of 0.49%.
It is important to note that the percentage of the aging population 67+ is rapidly increasing. In 1950 only 8% were 67+, while today the share is 16%, and further reaching 21% in 2050. And the share of children below the age of 15 will continue to fall. This opens a window of opportunity for us as there will be more demand for senior care services. Moreover, a report on the international Business opportunity stated that Norway is now a key market for senior health care services and that even with the government-funded National Insurance scheme, the growing number of Norwegian seniors will create an extraordinary need for senior caregivers and supplemental in-home care.
In terms of its climate condition, Norway is often regarded as a cold country with colder interior with increased precipitation and colder summers. In the winter the lowest temperate is -15 °C. Although that is not the lowest ever recorded, for in 1886 the lowest was -51, 4 °C and the highest temperature last recorded in the winter is 18.9°C. The weather conditions however do not pose any threat for us, as there is no forecasted information that would create a cause for alarm.
Norway is a rich developed country, and has shown robust growth since the start of the industrial era. Shipping has long been a support of Norway's export sector, but Norway's economic growth has been fuelled by an abundance supply of natural resources, including petroleum exploration and production, hydroelectric power, and fisheries....
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