is a small island roughly the size of Kentucky and is home to 334,252 people.
It is located roughly 2,500 miles northeast
of Boston. It takes approximately 5 and half hours to fly there. More than half
the population live in the capital area of Reykjavik. The official language is
Icelandic, but English is seen as the international language of Iceland. It is
the second language learned in the country, with it mandatory in public
schools. There should be little to no language barriers when communicating with
this foreign investment opportunity. In an article from Business Insider, on January
6, 2017, Iceland was named number 1 for
the most tolerant, progressive, and environmentally friendly countries in the
are a small community of people that pride themselves on trust. They are very hard workers and is not uncommon
for them to work multiple jobs. They are direct, hold honesty to a high value, along with keeping your
word. They tend to leave big decisions to last minute and may be unsure about committing
to 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 visit
their home for a business meeting.
When first making contact they
often seem quiet and reserved at first.
Once you get to know them, they are very friendly. Shaking hands is a standard
way of greeting business partners. Iceland is a classless society. What I mean
by this is that Icelandic companies lack the hierarchies that are known
throughout Europe and in North America. You may be sitting down in a meeting
with an associate only to have the CEO
come in and join in for a chat about the meeting. Most meetings generally start
with an exchange of business cards then
are straight to the point. They are often done over coffee or dinner. You may
also be invited to experience something
involving the country. Showing an
interest in the country is very respected.
asking about their names, they will normally answer with their first name. Iceland
forbids the use of surnames. There was a law passed in 1925 banning it. When
creating a name, they use primary patronymics. To create a name an Icelandic
would use the suffix (‘son’) for son and (‘dottir’)
and added to the genitive form of the father’s name. An example of this would
be the name Helgi. The genitive form would be Helga, for a son it would be
Helgason and a daughter would be Helgadóttir. This will be especially helpful
in determining gender without seeing the person in person.
business 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 the
other 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 just
about 24 hours of darkness.
The business culture is a mix of
personal and professional. With Iceland being a small country, people tend to
know each other and makes business friendly. Some of the first settlers in
Iceland were businessmen. Following old traditions,
Iceland continues to make fair-trade and honoring agreements. They value
honesty, independence, friendship, and accountability. An oral agreement in
Iceland is binding to the law.
equality is more in Iceland than in many other countries. In 1980 Iceland was
the first country in the world to have a nationally elected female president.
Also in 2009, the first female prime-minster
was elected, she was also the world’s first openly gay leader. The political
system allows a woman interested to pursue their interests in the parliament.
There is are also women in the clergy. Fishing is
mostly dominated by men, but in the fish processing part, it is more dominated by women.
religious beliefs in Iceland dominantly are members of the Evangelical Lutheran
Church, which is about 80%.
this is a small country the labor force shows that it’s strong. According to Global Road Warrior “The
economy depends heavily on the fishing industry, which provides 40% of
merchandise export earnings, more than 12% of GDP, and employs nearly 5% of the
workforce”. The unemployment rate in Iceland is low. In 2016 it was at 2.7%, and
in-country comparison to the world, it is 19. They are strong healthy
economic system is a capitalist structure and also with free-market principals.
A capitalist structure is an economic structure which the goods are owned by
private individuals or the business. In Iceland,
the business is generally owned by the people and not corporations. Free-market
principals are principals that are dictated by an open market and consumers. The
services and prices are set by the supply
and demand. The government and monopolies have no role. Iceland is a highly export-driven economy and is always looking for
investments opportunities from foreign countries.
to 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 Intelligence
Agency) that in 2016 there was a 17.20% budget surplus, ranking at number 2 in
the world. Iceland’s
economy relies heavily on exports of, marine products. In addition, aluminum, software, ferro-silicon alloys, woolen
goods and fishing industry- related products are important exports for
Iceland’s economy. Iceland’s main trading partners are the EU, EFTA, the USA, and Japan. Competition Law No. 44/2205 is currently 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. It is a member of the EEA
and is strongly connected with the EU for trade.
the World Trade Organization (WTO), Iceland has been a member of WTO since
January 1, 1995, and a member of General
Agreements on Tariffs and Trade (GATT) since April 21, 1968. There are
currently no trade barriers that would stop the import of the Cod into the
United States. The international trade between Iceland and the United States is
strong. The Foreign Direct Investment (FDI) is recognized because the country
strives on imports and is always looking for investors. They currently have a
website dedicated to foreign investment into Iceland.
is part of Organization for Economic Cooperation’s and European Economic Area
(EEA) but not part of the European Union (EU). The law that oversees foreign investment
for non-residents of the EEA is the 1996 Act on Investment. What is does is
grants treatment to non-residents of the EEA. It orders that foreign possession
of businesses is commonly clear, except for the limits presently forced in the energy,
aviation sectors, and fishing. The only business that may have fishing rights must
be a business with at least 51 percent Icelandic.
is no screening process for foreign investors. When it comes to mergers and acquisitions
the Icelandic government looks a little bit more carefully at them. They have
the authority to annul mergers or set certain standards with conditions to
prevent monopolies and limit competition
government type is a parliamentary republic. A
parliamentary republic is a type of government that has many layers. There are
elections every 4 years for the President, local authorities, and members of
the Althinigi (parliament). The legal system is a civil law
system that includes a constitution.
The Althing which has 63 members,
elected for a maximum period of four years. Elections are also held every four
years for the presidency, with no term limit. The original Althing was
established by Vikings in 930 A.D. making it the world’s first parliamentary
corruption rate in Iceland is low. According to transparency.org, a coalition
that is against global corruption states that in 2016 Iceland was number 14 out
of the 176 countries. Its highlight was the connection between corruption and
inequality. There are no military forces in Iceland as well. yup