We're selling Iceland," quoted the Financial Times in November 2007 after an interview
with Jon Olafsson, CEO of Icelandic Glacial. "The purity and coolness of the island -
because Iceland is very cool and hip these days." Though this statement is refered to the
water product, it demonstrated the high interest in the island itself. As many know, Iceland
is the country where one can witness the phenomenons of Mother Nature: tremendous
icecaps and several glaciers, raging rivers and magnificent waterfalls, spouting geysers
and steaming solfatara, volcanoes, a multitude of birds and whales. The spectacular
landscape is one reason why Iceland's tourism is successful. But in recent years Iceland
also drew the attention of many industries to itself. For example, many technological and
telecommuniational products have been outsourced in Europe towards Iceland as it
provides many competitive advantages in these fields.
Iceland is unique: it is the smallest economy in the world that has its own currency and a
flexible exchange rate. It is also an advanced country with excellent institutions meaning
low corruption index, the rule of law, a highly educated population and more (cf. Iceland
Chamber of Commerce 2006). For most of the 1990s the island presented one of the
highest consistent growth rates in the world and low inflation and unemployment.
Particularly the resource management in the mainstay fisheries sector, price stability and
diversification of the industry contributed to this economic record.
The paper on hand gives an outline of the country. To begin with general information
about the island is described. This includes demographic as well as historical and political
aspects. The third chapter sketches the development and structure of the Icelandic
economy. Current economic situation and main economic sectors are content of this
section. Furthermore, the culture is described with the three pillars being religion,
language and common history. Also the cultural dimensions of Hostede are analysed for
Iceland. Moreover this paper provides an overview of the Icelandic education system.
Finally upcoming topics and problems will be mentioned.
Table of Contents
1 Selling Iceland
2 General Characteristics of Iceland
2.1 Demographics
2.2 Iceland's Vegetation
2.3 Historical Development
2.4 Political System and International Relations
3 Economy and Industry of Iceland
3.1 Recent Eeconomic Situation
3.1 Economic History
3.3 Struc re of the Economy
3.4 The Main Economic Sectors
3.4.1 Financial Sector
3.4.2 Tourism
3.4.3 Marine Sector
3.4.4 Manufacturing and Power-Intensive Industries
4 Culture of Iceland
4.1 People and Society
4.2 Icelandic Language
4.3 Religion in Iceland
4.4 Icelandic Culture according to Hofstede
5 Educational System in Iceland
5.1 Pre-School (governed by the “the Pre-school Act”, No. 78/1994)
5.2 Compulsory Education (governed by the “the Compulsory School Act”, No. 66/1995)
5.3 Upper-Secondary Level (governed by the “the Upper Secondary School Act”, No. 80/1996)
5.4 Higher Education
6 Facts that Concern Iceland
Objective and Thematic Focus
This seminar paper provides a comprehensive overview of Iceland, analyzing its unique economic structure, cultural foundations, and educational system within an international business context. The research aims to explore how a small island economy with limited resources has achieved significant development and international integration.
- The role of the marine industry and the transition toward service-oriented sectors.
- Cultural identity, historical development, and the application of Hofstede's cultural dimensions.
- The structure and administration of the Icelandic educational system.
- Economic indicators, trade relations, and the impact of the European Economic Area (EEA).
- Environmental considerations and the strategic management of natural resources.
Excerpt from the Book
3.1 Economic History
During the 20th century Iceland was transformed from one of Europe’s poorest economies to modern economy: whereas two-third of the labour force was employed in agriculture at the beginning of the century, now about two-third are employed in services. The first three decades of the last century were characterised by rapid growth. This growth took place in the framework of fairly liberal economic policies. Due to the effects of the Second World War the country was restricted to act worldwide because of trade barriers, capital controls and a complex system of multiple exchange rates. Therefore original policies had changed quickly in order to allocate resources more efficient. Trade barriers were further lowered when Iceland became a member of the GATT in 1964 and the EFTA in 1970 (cf. Central Bank of Iceland 2007, p. 13).
For most of the century economic growth was led by the fisheries. Consequently, attempts in the fish catch and export prices of marine products have been the main source of fluctuations in output growth (cf. Central Bank of Iceland 2007, p. 13). Throughout the Second World War Iceland was the only Northern European country that was only marginally affected by war. Hence it occured an increased demand on the enlarged key market and unemployment rates dropped to zero and even demand for labour. Profits through exports of deep-frozen fish to the UK and US were spend on updating and increase of merchant navies in order to be competitive at the end of the war. (cf. Quack 2004, p. 127)
Summary of Chapters
1 Selling Iceland: Introduces the country, its unique economic characteristics, and the structure of the paper.
2 General Characteristics of Iceland: Provides geographic, demographic, and historical context, including the political system.
3 Economy and Industry of Iceland: Analyzes the economic situation, history, and the structure of key sectors like finance and marine industries.
4 Culture of Iceland: Examines Icelandic society, language, religion, and cultural dimensions according to Hofstede.
5 Educational System in Iceland: Outlines the four levels of the national education system and its governance.
6 Facts that Concern Iceland: Discusses current issues such as EEA membership, currency adoption, and environmental challenges.
Keywords
Iceland, International Business, Icelandic Economy, Marine Sector, Financial Services, Hofstede, Cultural Dimensions, Educational System, EEA, Fisheries, Sustainability, Economic Growth, Tourism, Labour Market, Manufacturing.
Frequently Asked Questions
What is the primary focus of this seminar paper?
The paper provides a structured overview of Iceland's development, covering its economy, culture, and educational system within an international business framework.
What are the core thematic fields covered?
The core themes include the transition of the Icelandic economy, the influence of natural resources, cultural heritage, and the modern educational infrastructure.
What is the main objective of the research?
The main objective is to outline the country's transformation from a poor agrarian society to an advanced, modern economy with a focus on its competitive advantages.
Which scientific approach is utilized?
The work employs a descriptive and analytical approach, synthesizing existing data and literature regarding economic indicators, historical developments, and cultural studies.
What is addressed in the main part of the document?
The main part covers the general characteristics, the structural analysis of the economy, the primary economic sectors, cultural dimensions, and the education system.
Which keywords best characterize this work?
The paper is characterized by terms such as Icelandic economy, marine sector, cultural dimensions, educational system, and economic growth.
How does Iceland’s cultural dimension (Hofstede) differ from the US?
Iceland exhibits lower power distance and lower masculinity (more feminine values) compared to the USA, with a medium index in uncertainty avoidance.
What is the role of the EEA in Iceland's economy?
The EEA membership facilitates economic integration with Europe, though it remains a subject of debate regarding the control of national fishing resources.
What caused the transformation of the Icelandic labour market?
The transformation was driven by the expansion of the fishery sector, constitutional changes, and increased participation of women in the workforce.
- Quote paper
- A.-K. Rademacher (Author), C. Bätz (Author), K. Hartmann (Author), 2008, Iceland - An Overview, Munich, GRIN Verlag, https://www.grin.com/document/160358
