Geert Hofstede and Norway Essay

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Table of contents

Abstract 1
Introduction 1
Business environment 2 Economy 2 Political 2 Social 3 Legal 4 Environmental 4
Basic appeal as location for a joint venture 5
Cultural issues 5 Kluckhohn-Strodtbeck 6 Hofstede 6 Gift giving 10 Meeting and Greeting 10 Handshakes 10 Greeting 11 The role of women 11 Food and diet 11
The government role to FDI 12
Conclusion 12
Recommendation 13
Reference 14

Abstract

We will make a joint venture with local Norway company to do wine export business. This report mainly introduces the business environment in Norway, namely economic, political, social, legal and environmental factors as well as the cultural issues that may affect the successful operation of doing business in Norway. On the other hand, this report will also consider the aspects of policy, and talk about the activities that the government can take to promote foreign direct investment in Norway, which may contribute to the operation of the business.

Introduction

Norway is a country which mainly relies on imports to meet general needs for its limited resources. And also, Norwegians tend to be more likely to have luxury items, such as wine. So it is a great new chance to enlarge the market shares. By making a joint venture with a local Norway company, it could be easy to entry into the country’ s market as the government’ s positive attitude to FDI and thus we may save much time and cost. The key factors that may affect the successful performance of the business as a joint venture in Norway should be divided into several sections, such as political, legal, environmental and economic. These different but linked factors determine the business opportunities in Norway. In addition, some cultural issues, such as gift giving, meeting and greeting, food and diet, should be prudently considered to avoid misunderstanding; otherwise, it may reduce the business opportunities indirectly.

Business environment

Economy

Norway is a developed country with modern industries. The economy of Norway is a successful example of mixed economy with a combination of free market activity and large state ownership of certain industries. The government controls the main economic areas such as petroleum, which occupies the majority of its exports and be relied on to a large extent. Norwegians enjoy the second highest GDP per capita in the world and the highest GDP per capita in North Europe. According to the data of Norway trade balance in 2007, the export from Norway is $11.6 billion and the import to Norway is $67.4 billion. It means that although the petroleum industry generates a huge economic income for Norway, it still relies on imports to meet its general needs for its limited resources. Therefore, it provides an opportunity for Australian wine company to export wine to Norway, especially under the modern of free trade zone of Norway in Europe. Moreover, with the increasing of disposable income in Norway, the spending and needs on luxury items also increased such as wine (Wine Australia, 2011). The partial relaxation of government controls on the wine market also has meant a more open market with a greater selection and more affordable wines from other countries.

Political

Norway has preserved its traditional political system of a constitutional hereditary monarchy and ground on the objectives of the parliamentary form of representative democracy. Every four years, the parliament is elected through a proportional system. In such framework, the ruling monarch is the head of the state, while a prime minister acts as the head of the government. Also, Norway has a multi-party system that give rise to coalition system, or sometimes a single party coming to power. The existence of so many parties in Norway can help the government better functioning when competition and oppositions arise among the various parties (Independence Day, 2011).
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