Icelandis a small island roughly the size of Kentucky and is home to 334,252 people.It is located roughly 2,500 miles northeastof Boston. It takes approximately 5 and half hours to fly there. More than halfthe population live in the capital area of Reykjavik. The official language isIcelandic, but English is seen as the international language of Iceland. It isthe second language learned in the country, with it mandatory in publicschools.
There should be little to no language barriers when communicating withthis foreign investment opportunity. In an article from Business Insider, on January6, 2017, Iceland was named number 1 forthe most tolerant, progressive, and environmentally friendly countries in theworld.Icelandic’sare a small community of people that pride themselves on trust. They are very hard workers and is not uncommonfor them to work multiple jobs. They are direct, hold honesty to a high value, along with keeping yourword. They tend to leave big decisions to last minute and may be unsure about committingto a big decision. Business meeting are normally concise and straight to the point.When traveling internationally do not be surprised if you are asked to visittheir home for a business meeting.
When first making contact theyoften seem quiet and reserved at first.Once you get to know them, they are very friendly. Shaking hands is a standardway of greeting business partners.
Iceland is a classless society. What I meanby this is that Icelandic companies lack the hierarchies that are knownthroughout Europe and in North America. You may be sitting down in a meetingwith an associate only to have the CEOcome in and join in for a chat about the meeting. Most meetings generally startwith an exchange of business cards thenare straight to the point. They are often done over coffee or dinner. You mayalso be invited to experience somethinginvolving the country.
Showing aninterest in the country is very respected. Whenasking about their names, they will normally answer with their first name. Icelandforbids the use of surnames. There was a law passed in 1925 banning it. Whencreating a name, they use primary patronymics. To create a name an Icelandicwould use the suffix (‘son’) for son and (‘dottir’)and added to the genitive form of the father’s name. An example of this wouldbe the name Helgi. The genitive form would be Helga, for a son it would beHelgason and a daughter would be Helgadóttir.
This will be especially helpfulin determining gender without seeing the person in person. Theirbusiness styles are not ways of the United States. They are friendly and shy.
If you come across boasting about your achievements they might tend to look theother way. Etiquette is similar to the United States. Be direct, shake hands,with eye contact. Once in business together they tend to be more laid back.Business often slows down in the autumn and winter due to the hour change.During this period of time, it is justabout 24 hours of darkness. The business culture is a mix ofpersonal and professional. With Iceland being a small country, people tend toknow each other and makes business friendly.
Some of the first settlers inIceland were businessmen. Following old traditions,Iceland continues to make fair-trade and honoring agreements. They valuehonesty, independence, friendship, and accountability.
An oral agreement inIceland is binding to the law. Genderequality is more in Iceland than in many other countries. In 1980 Iceland wasthe first country in the world to have a nationally elected female president.Also in 2009, the first female prime-minsterwas elected, she was also the world’s first openly gay leader. The politicalsystem allows a woman interested to pursue their interests in the parliament.
There is are also women in the clergy. Fishing ismostly dominated by men, but in the fish processing part, it is more dominated by women. Thereligious beliefs in Iceland dominantly are members of the Evangelical LutheranChurch, which is about 80%. Whilethis is a small country the labor force shows that it’s strong.
According to Global Road Warrior “Theeconomy depends heavily on the fishing industry, which provides 40% ofmerchandise export earnings, more than 12% of GDP, and employs nearly 5% of theworkforce”. The unemployment rate in Iceland is low. In 2016 it was at 2.
7%, andin-country comparison to the world, it is 19. They are strong healthyworkers.Theeconomic system is a capitalist structure and also with free-market principals.A capitalist structure is an economic structure which the goods are owned byprivate individuals or the business. In Iceland,the business is generally owned by the people and not corporations. Free-marketprincipals are principals that are dictated by an open market and consumers. Theservices and prices are set by the supplyand demand.
The government and monopolies have no role. Iceland is a highly export-driven economy and is always looking forinvestments opportunities from foreign countries. Accordingto Global Warrior for the year 2016,Iceland’s imports was $5.024 billion, and the exports were $4.6 billion.
According to the CIA (Central IntelligenceAgency) that in 2016 there was a 17.20% budget surplus, ranking at number 2 inthe world. Iceland’seconomy relies heavily on exports of, marine products. In addition, aluminum, software, ferro-silicon alloys, woolengoods and fishing industry- related products are important exports forIceland’s economy. Iceland’s main trading partners are the EU, EFTA, the USA, and Japan. According to Export.gov “Competition Law No. 44/2205 iscurrently in place to promote competition and to prevent unreasonable barriers to economic operations”.
Iceland is part of Europe but not part of the European Union or the EMU,it has its own currency called the Icelandic króna. Iceland is an affiliate ofthe EEA and is connected with the EU when it comes to trade. According tothe World Trade Organization (WTO), Iceland has been a member of WTO sinceJanuary 1, 1995, and a member of GeneralAgreements on Tariffs and Trade (GATT) since April 21, 1968. There arecurrently no trade barriers that would stop the import of the Cod into theUnited States. The international trade between Iceland and the United States isstrong.
The Foreign Direct Investment (FDI) is recognized because the countrystrives on imports and is always looking for investors. They currently have awebsite dedicated to foreign investment into Iceland.According tothe U.S.
Department of State “Iceland is part of Organization for EconomicCooperation’s and European Economic Area (EEA) but not part of the EuropeanUnion (EU). The law that oversees foreign investment for non-residents of theEEA is the 1996 Act on Investment”. What is does is grants treatment tonon-residents of the EEA. There is no screening process for foreign investors.
When it comes to mergers and acquisitions the Icelandic government looks alittle bit more carefully at them. They have the authority to annul mergers orset certain standards with conditions to prevent monopolies and limit competitionThegovernment type is a parliamentary republic. Aparliamentary republic is a type of government that has many layers.
There areelections every 4 years for the President, local authorities, and members ofthe Althinigi (parliament). The legal system is a civil lawsystem that includes a constitution.The Althingi which has 63 members,elected for a maximum period of four years. Elections are also held every fouryears for the presidency, with no term limit. The original Althingi wasestablished by Vikings in 930 A.
D. making it the world’s first parliamentarydemocracy. Thecorruption rate in Iceland is low. According to transparency.
org, a coalitionthat is against global corruption states that in 2016 Iceland was number 14 outof the 176 countries. Its highlight was the connection between corruption andinequality. There are no military forces in Iceland as well. Overallthis country seems pretty peacefully and stands behind their word. Afterreviewing this information and researching further into the production ofgetting the fish to our warehouse I have found the timeline to work in ourfavor. Generally, the fish are caught on the boat we will say day 1.
The nextday is boat is back and the being processed at their warehouse in Iceland. Theyare always working fresh fish. This may be a little more expensive but withfresh fish, our customer will be happybecause their customers will be happy. Within 2-3 from being in the waters offof Iceland it will be in our warehouse. Typically, the boats in the UnitedStates are out at sea for several days. Yes,them being so close does not always mean the freshest of fish. Thereare many different opportunities to invest in Iceland.
There is a Websitecalled http://export.is/cpv/03311210-7/cpv-text/cat/cpv-lang/EN Which has a list of companies thatexport cod from Iceland.