IcelandBy

Salvör Þóra Davíðsdóttir – Patricia Moore – Laura Parkerhttp://www.youtube.com/watch?v=4qE60Xd1WUA&feature=related

vsvs..IcelandIceland

United United StatesStates

Icelandic coat-of-armsIcelandic coat-of-arms

Comparisons

Iceland• Acknowledges religious

beliefs and superstition surrounding state

• Small power distance:– General Norm – Family– School

United States• Separation between

church and state• Mediocre power distance:

– General Norm– Family– School

Map of Iceland

Facts about Iceland

• Located in the North Atlantic Ocean just south of the Arctic Circle between North America and Europe

• Reykjavik is the world’s northernmost capital city

• A part of Europe and the Nordic countries

• Several daily non-stop flights from the US. Flight times are as short as 4 ½ hours.

• Keflavik International airport is about 30 minutes from the capital.

• The center of Iceland is ruggedly mountainous and uninhabited.

• Houses and pools are heated with geothermal water.

• The electrical current is 220 volts, 50 Hz

Facts about Iceland• Population July 1, 2009: 319.246

• Area of Iceland: 39,769 sq miles (about the size of Kentucky or Ohio)

• Wasteland: 24.918 sq miles

• Coastline: 3,088 miles

• Highest peak: Hvannadalshnjukur 6.500 feet

• Currency: $1.00 = 124 kronur (ISK)

• Iceland remains outside the EU but is a member of Nato.

• Large parts of Iceland are green, especially in summer

• There are 4 large glaciers in Iceland covering 4.600 sq miles or 11.5% of the total area of the country

– Langjökull – Hofsjökull – Mýrdalsjökull –Vatnajökull.

• Vatnajökull is not only bigger than the other three together, it is even bigger than all other European glaciers together.

History• A Norwegian named Ingolfur Arnarsson was first to settle in Iceland

(Reykjavik) around the year 874• Reykjavik is the Capital of Iceland• In the year 930 Althingi was established making it the oldest parliament

in the world.• In the year 1000 Iceland converted to Christianity• Ruled by Norwegians and later the Danish • Independence in 1944• Vigdís Finnbogadóttir the first female president in the world (1980 –

1996)• Jóhanna Sigurðardóttir

the first openly gay PrimeMinister in the world(2009 – present)

Population TrendsForeigners 1999-2009

(% of Foreign Citizens January 1 each year)

7.4% January 1, 2009

Population• 319.246 thousand inhabitants (July 1, 2009)

• Inhabitants more than doubled in number since 1950.

• 201.598 live in Reykjavik and vicinity (63% of population)

• It is the most scarcely populated country in Europe.• Social interaction is egalitarian• Public comportment is quiet and reserved.• Small Power Distance• Scandinavian-style of economy that is capitalistic in

nature• Far-reaching welfare system• Employment opportunities along with the allocation of

income evenly distributed within the province.

Population• Ethnicity

– Fairly homogenous population– Norse/Celtic descendants 94%– Foreign origin 6%

• Thereof Europeans 70% – Asians 17% - North Americans 6%

• Nationality– Polish– Scandinavians– Baltic Nations (Estonia, Lithuania, Latvia)– Ex-Yugoslavians– Americans Germans– Filipinos– Thais– British

Language• The native language is Icelandic• English, Danish, Scandinavian languages, and German are widely

understood.

• Icelandic is a North Germanic language and relates well to the old Norse language spoken by the Vikings.

• It is a very transparent and descriptive language, but it is very difficult to learn as all nouns/names change depending on context.

Ex. Here is Salvör Hestur (Horse) About Salvöru Hest From Salvöru Hesti To Salvarar Hests

• Characters unique to the Icelandic alphabet– Áá – Éé – Ðð – Íí – Óó – Úú – Ýý – Þþ – Ææ – Öö,

•

Religion• Lutheran Church of Iceland: 79.1%

• Roman Catholic Church: 2.9%

• Reykjavík Free Church: 2.5%

• Hafnarfjörður Free Church: 1.6%

• Other religions: 3.81%

• Unaffiliated 2.89%

• Other or unspecified 7.2% (2009 est.)

• According to law, the National Treasury puts a portion of income tax to registered religions.

• The portion for people outside of any religion goes to the University of Iceland

Climate• The climate is

temperate and is moderated by the North Atlantic Current.

• Winters here are generally mild and windy while the summers are damp and cool.

• The weather is an important subject for chit-chat.

• It appears it changes at least twice a day

• If you don't like the weather, waitfifteen minutes.

Education

• Four Levels– Pre-Primary Schools– Compulsory Schools

• (single structure – primary and lower secondary education

– Upper Secondary Schools

– Higher Education Institutions

Media• Press:

– Frettabladid – daily – Morgunbladid - morning daily – DV - evening daily – Vidskiptabladid – business – Baejarins besta - West Fjords local news

• Television:– Icelandic National Broadcasting Service - operates public network Sjonvarpid – Stod 2 - main private station – Syn – private – Skjar einn - private

• Radio:– Icelandic National Broadcasting Service - public radio, operates two national networks

and four regional stations – Bylgjan - main private station

Sports• The national sport is swimming. Every place

with more than 100 inhabitants has its own swimming pool, filled with geothermal water.

• Soccer

• Team Handball

• Basketball

• Golf

• Tennis

• Horseback riding.

•

Cuisine• Native cusines

– Hákarl (decomposed shark)– Gravlax (salmon fish marinated with spices)– Hangikjöt (smoked lamb)– Slátur (delicacies made from sheep

intestines)– One may even try out the Brennivin the local

liquor formed out of potatoes and caraway.

• Favorites– Fish and lamb– Water is by far the best drink in Iceland —you

get the same pure taste from the tap or out of a fresh mountain stream.

– Fruits and vegetables are grown organically in greenhouses and meat and dairy products are free of additives and growth hormones.

• Tidbids– Beer was not legalized until March 1, 1989– Over 170 restaurants in the greater Reykjavik

area where top Icelandic chefs have the advantage of cooking with pure and natural Icelandic ingredients.

Economy• Major Industries

– Fishing sector earns 70 % of the revenue generation through its export

– The rest lies with the workforce associated with it.– Exports:

• Aluminum• ferro-silicon alloys• Machinery• electronic equipment related to the fishing business• Software• woolen goods.

– Imports:• machinery and equipment• petroleum products• Food• Textiles.

Economy

• GDP– Per Capita $41,800 in 2008– $12 billion in 2008– Public Debt: 80% of GDP

• Income Level– Average income in 2008

was 324.000 IKR / $2,613 USD

• Unemployment– 9.1% and estimated to

surpass 10% by the end of the year

– In comparison it was 1.6% in 2008 and 1% in 2007

Economic Growth 2006-2008

(GDP, Volume Change on Previous Year)

Maybe Maybe Not

Financially able to take on risk Business has not been good lately

Willing to wait on Iceland economy to turn around to reap benefits from global expansion

Need to recover from economic downturn before considering expansion

Should I do business in Iceland?

Risk Factors

• Inflation reached 19%(Consumer price index, annualized rates, 12 months, %)

• Interest rates reached18%

• Banks were taken over by the government– Landsbanki– Glitnir & Nyi Glitnir– Kaupthing Bank

Politics

Political Parties• Independence (IP)• Progressive (PP) • Social Democratic

Alliance (SDA)• Left-Green Party

(LGP)• Liberal Party (LP)

Governmental Structure

• Semi-presidential & Parliamentary

Politics

• Participates in the Nordic cooperation• Not a member of the EU, but it is in the

process of applying.• A member of NATO.

• Only country in NATO with no armed forces.

RevolutionThe proletariat campaign group Raddir fólksins (Voices of the People), with Hördur Torfason, a singer and activist prompted the people to act and make the government take responsibility for the financial crisis

Demands•Make the government the boards of the Central Bank and Financial Services Authority to take responsibility for the financial crisis•Demanded the three heads of the national banks resign•Early elections to put new government in place

Calm after the storm•Banks are being restructured•Elections were held early to put new members of government in place•Decisions about joining the EU swing back and forth

References• http://www.pbase.com/world/iceland• http://www.who.int/countries/isl/en/• http://hagstofan.is• http://en.wikipedia.org/wiki/Iceland• http://goscandinavia.about.com/od/localinfoma2/p/

icebasicstats.htm• http://www.icelandtouristboard.com/index.php?page=About-

Iceland• https://www.cia.gov/library/publications/the-world-factbook/

geos/ic.html• http://www.worldatlas.com/webimage/countrys/europe/

lgcolor/iscolor.htm• www.sedlabanki.is• http://www.redflag.org.uk/frontline/mar09/iceland.html

References Cont’d

• http://www.world-atlas.us/world-map.gif• http://antiquitieswatch.files.wordpress.com/2009/03/us-

flag.jpg• http://images.huffingtonpost.com/2009-01-23-

LANDSBOKASAFN1.232.09kjartaneinarsson.jpg• https://www.cia.gov/library/publications/the-world-

factbook/fields/2118.html?countryCode=ic&rankAnchorRow=#ic

QUESTIONS?

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