Business 2701 - a Complete Country Analysis on Switzerland

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The purpose of this paper is to perform a complete country analysis on Switzerland.  The paper covers country’s macro environment, factor endowments, analysis of risks and benefits, and recommendation and solutions.

Formed as a defensive alliance among three cantons, Switzerland was founded in 1291. In 1815, Switzerland became an independent country (Kids, 2016). Capital of Switzerland is Bern, and the largest city is Zurich; It has a total of 26 cantons, also known as, federal states of Swiss confederation. Ranked 3vrd highest in salary and job security, and worlds 2nd happiest country in 2016; it’s currency is Swiss Franc CHF (Expactica, 2016).  

Politically Switzerland maintain a neutral position in terms of Global political issues. Switzerland refuses to be a member of EU, EEA, or NATO. Switzerland prefers to have an active voice as a member of Partnership for Peace programme, World Trade Organization, and United Nations security council (gov.uk, 2016). The report explains more on the roles Switzerland plays within UN.

Swiss population lives a high quality of life, thus, demanding high quality of products and good at competitive prices. Swiss highly skilled labour, efficient manufacturing sector, strong Swiss Franc, low corporate taxes, well planned infrastructure, strong IT existence and politically neutral stand lures other countries and multinationals to invest in Switzerland.

Country’s Macro Environment

According to an article published on Swiss info website, average Swiss adult is worth around $513,000 in 2013.  Switzerland became the first country whose average wealth exceeded $500,000 in 2011 (swissinfo, 2013).  As per CIA Switzerland’s GDP per capita is $58,600 USD and ranks 16th globally. (CIA, 2016). The Swiss National Bank projects an inflation rate decrease of 0.4% for 2016. (gov.uk, 2016). Economist forecast a rise in imports by 2%. An 0.5% increase in salary is also forecasted by economist, in turn increasing the spending power of 2 billion CHF (Gehrig, 2015).

 Switzerland is known for its “world-class infrastructure, making it an attractive hub for international companies in Europe. Swiss transport system includes and is not limited to trains, buses, trams, and even boats; moreover, its affordability and reliability has played a huge role in the growth of its suburbs. Micro firm (less than 10 employees) asses Switzerland transport and infrastructure more skeptically. According to Appendix 1 in this report, infrastructure is rated 3.7 positive influence on company’s success. In 2015 Business Insider posted an article, which outlined, top 11 countries with best infrastructure globally; Switzerland ranked 6th amongst the top countries. Moreover, Swiss rail came 2nd place, with the dense railroad infrastructure; quality of roads ranking 9th globally. (Holodny, 2015)