Business in Today’s Global Environment
Finland
Finland offers a wide variety of opportunities for foreign investment in the way of a company wanting to open a manufacturing plant or perhaps even a joint venture. Apex Furniture is looking for a location for a high quality furniture manufacturing plant. Apex is looking to expand their operations into the European regions and enter into the world market. They are looking for a location that can support the resource of wood needed for many of their items and the workforce with the skills to help create and produce the needs of the European regions.
Several things need to be taken into account, including education and how it relates to the workforce, employment and how it relates to a accessible workforce, political and economic stability, median incomes and income disparity (will there be a market to purchase furniture), ease of direct investment, supply chain, and market competition.
Finland is officially the Republic of Finland and is a Nordic country located in the Finnoscandian region of Northern Europe. Fennoscandia is a geographic term for the region made up by the Scandinavian Peninsula, Finland, Karelia and the Kola Peninsula. Finland is bordered by Sweden to the west, Norway to the north, Russia to the east, and Estonia to the south across the Gulf of Finland.
There are 5.4 million people that live in Finland at the end of 2012 with the majority in its southern regions. Finland is the eighth largest country in Europe and the most sparsely populated country in the European Union. Finland also has one of the world’s most extensive welfare systems, one that generates decent living conditions for all residents, Finns and non-citizens. Finland is one of the oldest countries with the average age at 42.7 years. Half of the voters are estimated by be over 50 years old.
According to the Finnish Forest Sector Economic Outlook 2013-2014 the export value of timber, plywood, cardboard and pulp has increased during the early part of the year, improving the profitability of production at the same time. The direction for the next year for the forestry sector is uncertain as the economic growth in Europe remains uncertain. The trend direction largely depends on the amount of exports outside Europe, (Finnish Forest Sector Economic Outlook 2013-2014, 2013) Finland has the best educational system in Europe and has recently been ranked as one of the world’s most peaceful and economically competitive countries. It has also been ranked as one of the world’s countries with the highest quality of life. Newsweek magazine ranked Finland as the overall “best country in the world”. (Newsweek's list of the world's best coutnries, 2010) The size of the Finnish workforce is 2.7 million. The educational Nordic strategy for achieving equality and excellence has been based on a publicly funded comprehensive school system. Finland has spread out the school network so pupils have a school near their homes whenever possible or to provide free transportation to more widely dispersed schools. After their nine-year basic education in a comprehensive school, students at the age of 16 may choose to continue their secondary education in either an academic track or a vocational track, both of which usually take three years. The Education Index, published with the UN’s Human Development Index in 2008 lists Finland as 0.993, amongst the highest in the world, tied with Denmark, Australia and New Zealand.
Politically, Finland is a parliamentary republic with a central government based in the capital of Helsinki. Finland has 336 cities, towns, or other areas that have their own local governments. The Aland Islands is its own autonomous region making Finland a federacy. The autonomous region is an administrative division of a country that has a degree of autonomy, or freedom from an external authority. Finland is considered stable and suitable for foreign investment with no political risk for investors
Finland has a nominal per-capita income of over $46,000 in 2012. Finland has liberalized its economy since the late 1980s and the financial and product market regulation was loosened. Some state enterprises have been privatized and there have been some modest tax cuts. Finland joined the European Union in 1995 and the Eurozone in 1999. The population is aging with the birth rate at 10.42 births per 1,000 populations, or a fertility rate of 1.8. (Population development in the independent Finland - greying Baby Boomers, 2007)
The Finnish Chamber of Commerce states “We make a difference to your business, from ensuring that your views are heard within government to opening doors for new opportunities in local, national and international markets. We provide critical business advice, services and skills development. Join a unique organization that has a strong voice”. (Risto E. J. Penttila)
Forest covers 86% of the country’s land area and the largest forested area in Europe. Finland is the largest producer of wood in Europe and among the largest in the world. The Finnish climate is suitable for cereal farming only in the southernmost regions, while the northern regions are suitable for animal husbandry.
A quarter of Finland’s territory lies within the Arctic Circle and the midnight sun can be experienced for more days the farther north one travels. At Finland’s northernmost point, the sun does not set for 73 consecutive days during summer, and does not rise at all for 51 days during the winter.
Each region has a state Employment and Economic Development Centre which is responsible for the local administration of labor, agriculture, fisheries, forestry and entrepreneurial affairs. The Finnish Defence Forces regional offices are responsible for the regional defense preparations and for the administration of conscription within the region.
The judicial system of Finland is a civil law system divided between courts with regular civil and criminal jurisdiction and administrative courts with jurisdiction over litigation between individuals and the public administration. Finland has successfully fought against government corruption, which was more common in the 1970s and 1980s. Economic reforms and the European Union membership have stricter requirements for open bidding and many public monopolies were abolished. According to Transparency International, Finland is ranked as the least corrupt countries in Europe. (Curruption by Country) Finland is also a highly industrialized mixed economy with a per capita output equal to that of other European economies such as France Germany, Belguim or the United Kingdom. The largest sector of the economy is services at 66%, Followed by manufacturing and refining at 31%, and primary production is 2.9%.
The largest industries are electronics (22%), machinery, vehicles and other engineered metal products (21.1%), forest industry (13%). (Statistics Finland) The mobile phone game, “Angry Birds” was developed in Finland and has become a hit both domestically and internationally. Finland’s unemployment rate is 8.2% as of October 2013.
Finland has timber and several mineral and freshwater resources. The Greater Helsinki area generates around a third of GDP. High-technology manufacturing in Finland ranked second largest after Ireland. Knowledge-intensive services have also ranked the smallest and slow-growth sectors especially the agriculture and low-technology manufacturing is ranked second largest after Ireland. The overall short-term outlook is good and GDP growth has been above many European Union peers.
Finland is highly integrated in the global economy, and international trade is a third of GDP. The European Union makes 60% of the total trade. The largest trade flows are with Germany, Russia, Sweden, United Kingdom, United States, Netherland and China. Finland has traditionally been among the free trade supports, except for agriculture. Finland is the only Nordic country to have joined the Eurozone.
Finland has a climate and soils that make growing crops a challenge. The country has severe winters and a short growing season that may be shortened by frost. The annual precipitation is usually sufficient, but it all happens during the winter months, making drought conditions during the summer months. Farmers have relied on quick-ripening and frost-resistant varieties of crops. Compared to other European countries, Finland’s agriculture was efficient and productive.
Forests play a key role in the country’s economy, making it one of the world’s leading wood producers and providing raw materials at competitive prices for the crucial wood-processing industries. The government has long played a leading role in forestry, regulating tree cutting, sponsoring technical improvements, and establishing long-term plans to ensure that the country’s forests continue to supply the wood-processing industries. Finland also has roughly the lowest industrial electricity prices in the European Union. Finland also has an extensive road system which is utilized by most internal cargo and passenger traffic. What to expect in Finland would be a nation of builders, hard-working people with exceptional skills and experience; a good test bed for product development and trial manufacturing in cooperation with companies; lower total production costs due to high innovation level and productivity; open and transparent business environment; effective logistics – gateway to Russia and good transport connections to other or Nordic countries and Germany; and investment aid up to 35% for select industries and sectors. (Invest in Finland - Manufacturing) Some of the strengths that can be found in Finland would be the access for their forestry resources and their workforce resources. The weaknesses found would be the climate of the upper regions which would shut down some of those areas during the deep winter months. Some opportunities would be the connections to the other European countries and also Germany. Threats would be the existing companies that provide similar products of furniture and are already in the market. Based on all the collective information Apex Furniture would benefit greatly from entering into the production and marketing opportunities offered by Finland. All components for a successful operation exist in this country. The government is very encouraging to foreign investment with incentives to provide. The resources for a furniture manufacturing company are ample. The workforce is skilled and the country is developed.

Works Cited
Curruption by Country. (n.d.). Retrieved November 8, 2013, from Transpaency Internations: http://transparency.org/country#FIN
Finnish Forest Sector Economic Outlook 2013-2014. (2013, November 1). Retrieved November 24, 2013, from Metla: http://www.metla.fi/tiedotteet/2013/2013-11-01-outlook.htm
Invest in Finland - Manufacturing. (n.d.). Retrieved November 23, 2013, from Invest in Finland: http://www.investinfinland.fi/industries/16
Newsweek's list of the world's best coutnries. (2010, August 15). Retrieved November 3, 2013, from World News: http://mag.newsweek.com/2010/08/15/interactive-infographic-of-the-worlds-best-countries.html
Population development in the independent Finland - greying Baby Boomers. (2007, May 12). Retrieved November 3, 2013, from Statics Finland: http://www.stat.fi/tup/suomi90/joulukuu_en.html
Risto E. J. Penttila, C. F. (n.d.). Finnish Chambers of Commerce. Retrieved November 19, 2013, from FINNCHAM: http://kauppakamari.fi/en/finland-chamber-of-commerce/
Statistics Finland. (n.d.). Retrieved November 8, 2013, from Finland in Figures: http://www.stat.fi/tup/suoluk/suoluk_teollisuus_en.html
(2004). Trends in sea level Variability. Finnish Institue of marine Research.