Social infrastructure and political institutions

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: BS ISC, 2012). Microeconomic Fundamentals: The national business environment has flaws that are surprising for such a wealthy country. The active role of the state in the economy includes a high regulatory burden for businesses. The small domestic market and trade barriers prevent dynamic trade flows, and the domestic value chain is less broad ­based than in peer countries. Financial markets are sound and well regulated, and particularly sophisticated in the oil and gas sector. Norway’s relative productivity has fallen since 2006, when it was 40% above the US level. Immigration from Eastern Europe, predominantly cheap labor, has increased in this time period, from close to 0 in 2002, to around 5,000 in 2004 and circa 15,000 annually in 2008 ­2010 (Statistics Norway, 2011). Social Infrastructure and Political Institutions: Norway is number 1 on the UN’s human development index, and comes 6th on the UN’s composite index of gender equality. There is universal access to virtually free public health care and education. The judicial system is independent and strong. The press is free, but less diverse than in peer countries. Parliament and government are seen as effective. Factor Conditions: Roads and railroads are expensive to build, since the population is geographically dispersed and the terrain demanding. Port infrastructure is inferior to peer The oil & gas cluster in Norway 7 countries. However, Norway has a well ­developed Internet broadband network. The procedures to start new businesses are relatively burdensome, but Norway ranks close to the top in the global competitiveness index with regards to access to credit, venture capital funds and financing through local equity market. Context for Firm Rivalry and Strategy: Norway enjoys...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online