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Switzerland
Switzerland
Switzerland
Switzerland
Switzerland
Switzerland
Switzerland
Switzerland
Switzerland
Switzerland
Switzerland
Switzerland
Switzerland
Switzerland
Switzerland
Switzerland
Switzerland
Switzerland
Switzerland
Switzerland
Switzerland
Switzerland
Switzerland
Switzerland
Switzerland
Switzerland
Switzerland
Switzerland
Switzerland
Switzerland
Switzerland
Switzerland
Switzerland
Switzerland
Switzerland
Switzerland
Switzerland
Switzerland
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Switzerland

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This project covers Switzerland in general, Economy of Switzerland,Famous Swiss Companies,Present economic condition in Switzerland,Trading partners of Switzerland, Switzerland's trading relations …

This project covers Switzerland in general, Economy of Switzerland,Famous Swiss Companies,Present economic condition in Switzerland,Trading partners of Switzerland, Switzerland's trading relations with India.

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  • 1. SWITZERLAND OBJECTIVES OF THE PROJECT To know Switzerland in general To know the economy of Switzerland and to know some famous Swiss Companies To understand the present economic condition in Switzerland To know the main trading partners of Switzerland and the imports and exports made by it. To see what does Switzerland import and export from India
  • 2. RESEARCH METHODOLOGY I have completed the project SWITZERLAND using the secondary data like Internet and various research, Management and news portals. Time constraint and the maximum limit in the number of pages are the reasons of not preparing the project report in detail as I wanted it to be but still I have tried to explain in general, about the economy, trade relations and present economic condition of Switzerland and also to know some famous Swiss Companies.
  • 3. Introduction Switzerland is a peaceful, prosperous, and modern market economy with low unemployment, a highly skilled labor force, and a per capita GDP among the highest in the world. Bern is the capital city of Switzerland. The currency of Switzerland is Swiss Franc. Switzerland's economy benefits from a highly developed service sector, led by financial services, and a manufacturing industry that specializes in high-technology, knowledge-based production. Its economic and political stability, transparent legal
  • 4. system, exceptional infrastructure, efficient capital markets, and low corporate tax rates also make Switzerland one of the world's most competitive economies. The Swiss have brought their economic practices largely into conformity with the EU's, to enhance their international competitiveness, but some trade protectionism remains, particularly for its small agricultural sector. Switzerland maintains diplomatic relations with almost all countries and historically has served as a neutral intermediary and host to major international treaty conferences. The country has no major dispute in its bilateral relations. Switzerland is not a member of the European Union; the Swiss people have consistently rejected membership since the early 1990s. Only on Sept 10, 2002, the Swiss abandoned their long-held neutrality to become the 190th member of the UN. Switzerland also is a member of the following international organizations: World Trade Organization, Organization for Economic Cooperation and Development, European Free Trade Association, Bank for International Settlements, Council of Europe, and Organization for Security and Cooperation in Europe (OSCE). The Swiss feel a moral obligation to undertake social, economic, and humanitarian activities that contribute to world peace and prosperity. This is manifested by Swiss bilateral and multilateral diplomatic activity, assistance to developing countries, and support for the extension of international law, particularly humanitarian law. Switzerland (mainly Geneva) is home to many international governmental and nongovernmental organizations, including the International Committee of the Red Cross (whose flag is essentially the Swiss flag with colors reversed--the Red Cross historically being a Swiss organization). One of the first international organizations, the Universal Postal Union, is
  • 5. located in Bern.  Size and Location of Switzerland Switzerland has an area of 41,285 square kilometres (15,940 square miles). The productive area - that is, the area without the lakes, rivers, unproductive vegetation and no vegetation at all - covers 30,753 square km (11,870 square miles). It measures 220 kilometers (137 miles) from north to south and 350 km (217 miles) from east to west. Switzerland stands on the route linking northern and southern Europe. It borders Germany in the north, Austria and the Principality of Liechtenstein in the east, Italy in the south and France in the west. This means that three important European cultures meet in Switzerland - that of the German-speaking area, the French and the Italian. Climate and seasons The diversity of Switzerland is reflected in its climate, despite its small size. The Alps are an important factor here. They act as a barrier, so the weather in the north is often quite different from that in the south. It is noticeably milder in winter in the south than in the north. There are also significant differences in the amount of rainfall.
  • 6. The seasons are clearly defined. In spring (March to May) the trees blossom and the meadows become green. In summer the temperature rises to 25-30 degrees (77-86 degrees Fahrenheit). In autumn (September to November) the fruits ripen, then the leaves turn brown and fall. In winter the snow changes the landscape. Water sources Switzerland has 6 per cent of Europe's stock of fresh water. The Rhine, Rhone and Inn all take their source here, although their waters flow into three seas: the North Sea, the Mediterranean and the Black Sea.The Rhine Falls, a few kilometers downstream of Schaffhausen, are the largest in Europe. They are 150 m (450 ft) wide and 23 m (75.4 ft) high. In addition, Switzerland has over 1,500 lakes. The two largest, Lakes Geneva and Constance, lie on the border. Lake Geneva is shared with France, and Lake Constance with Germany and Austria. Lake Geneva, which lies on the course of the Rhone, is the largest freshwater lake in central Europe. The biggest lake which lies wholly within Switzerland is Lake Neuchâtel with an area of 218.4 square km (84.3 square miles). Probably the best known lake is Lake Lucerne in Central Switzerland (113.7 square km / 44 square miles).
  • 7.  Demographic Features of Switzerland Population in Switzerland The total population in Switzerland was last recorded at 8.0 million people in 2012 from 5.4 million in 1960, changing 48 percent during the last 50 years. Population in Switzerland is reported by the Eurostat. Switzerland Population averaged 6.67 Million from 1960 until 2012, reaching an all time high of 7.95 Million in December of 2012 and a record low of 5.36 Million in December of 1960. The population of Switzerland represents 0.11 percent of the world´s total population which arguably means that one person in every 882 people on the planet is a resident of Switzerland.
  • 8. Language Switzerland has four national languages, but they vary greatly in the number of speakers. 1. German German is by far the most widely spoken language in Switzerland: 19 of the country’s 26 cantons are predominantly (Swiss) German-speaking. 2. French French is spoken in the western part of the country, the "Suisse Romande." Four cantons are French-speaking: Geneva, Jura, Neuchâtel and Vaud. Three cantons are bilingual: in Bern, Fribourg and Valais both French and German are spoken. 3. Italian Italian is spoken in Ticino and four southern valleys of Canton Graubünden. 4. Rhaeto-Rumantsch (Rumantsch) Rumantsch is spoken in the only trilingual canton, Graubünden. The other two languages spoken there are German and Italian. Rumantsch, like Italian and French, is a language with Latin roots. It is spoken by just 0.5% of the total Swiss population. 5. Other languages The many foreigners resident in Switzerland have brought with them their own languages, which taken as a whole now outnumber both Rumantsch and Italian. The
  • 9. speakers of Serbian/Croatian were the largest foreign language group, with 1.4% of the population. English was the main language for 1%. Education Since Switzerland has no natural resources, education and knowledge have become very important resources. Therefore Switzerland claims to have one of the world's best education systems. In Switzerland, every child must attend at least the elementary school. The country provides various schools at different levels. Because the cantons are responsible for the educational system, the names, the subjects, the starting age of the students and the duration vary significantly between the cantons. For example, some cantons start to teach the first foreign language at fourth grade, while others start at seventh grade. This can turn moving with children between cantons into a nightmare. In Switzerland, most children go to public schools. Private schools usually are expensive and people tend to think that students of private schools probably didn't make it at the public school. Public schools include "Kindergarten", "Volksschule" (elementary school), "Gymnasium" (secondary school) and "Universitäten" (universities). Most municipalities provide kindergarten, primary and secondary schools. Most cantons provide at least one secondary school. There are eleven universities in Switzerland, nine are run by cantons, two are run by the confederation.
  • 10. After elementary school, kids may either choose to go to secondary school or to start an apprenticeship. In the later case, after finishing the apprenticeship, it is still possible to start an academic career at either a secondary school or a so called"Fachhochschule" (FH) (technical college). Employed Persons in Switzerland Employed Persons in Switzerland increased to 4827 Thousand Persons in the first quarter of 2013 from 4801 Thousand Persons in the fourth quarter of 2012. Employed Persons in Switzerland is reported by the Swiss Economic Institute (KOF). Switzerland Employed Persons averaged 3957.62 Thousand Persons from 1975 until 2013, reaching an all time high of 4827 Thousand Persons in February of 2013 and a record low of 3242 Thousand Persons in August of 1976. In Switzerland, employed persons are individuals with a minimum required age who work during a certain time for a business.
  • 11. Unemployment Rate in Switzerland Unemployment Rate in Switzerland remained unchanged at 3 percent in August of 2013 from 3 percent in July of 2013. Unemployment Rate in Switzerland is reported by the State Secretariat for Economic Affairs. Switzerland Unemployment Rate averaged 3.35 Percent from 1995 until 2013, reaching an all time high of 5.40 Percent in May of 1997 and a record low of 1.60 Percent in November of 2000. In Switzerland, the unemployment rate measures the number of people actively looking for a job as a percentage of the labour force.
  • 12.  Economy of Switzerland Switzerland has a highly successful market economy based on international trade and banking. Its standards of living, worker productivity, quality of education, and health care are higher than any other European country. Inflation is low, and unemployment is negligible. The economy is heavily dependent on foreign guest workers, who represent approximately 20% of the labor force. Agriculture employs less than 5% of the population, and since only 10% of the land is arable, the primary agricultural products are cattle and dairy goods (especially cheeses); grains, fruits, and vegetables are also grown, and there is a large chocolate-processing industry. Mineral resources are scarce, and most raw materials and many food products must be imported. Tourism adds significantly to the economy. Electricity is generated chiefly from hydro electrical and nuclear power sources. Switzerland has a worldwide reputation for the high quality of its export manufactures, which include machinery, chemicals, watches, textiles, precision instruments, and diverse high-tech products. Centered in Basel, the chemicalpharmaceutical industry exports around the globe. Due to its central location in Europe and the stability of its politics and currency, Switzerland has become one of the world's most important financial centers. The banking, insurance, shipping, and freighting industries accommodate the enormous amount of international trade going through Switzerland. Banking has also benefited secrecy laws, which have led wealthy foreigners to evade taxes by hiding assets with Swiss banks. In recent years, however, that secrecy
  • 13. reduced as a result of pressure from foreign governments seeking to prosecute tax cheats. Imports include manufactured goods, vehicles, and clothing and textiles. Its most important trading partners are Germany, Italy, France, the United States, and Great Britain. As a first world country with a skilled labor force, the majority of Swiss exports are precision or 'high tech' finished products. Switzerland's largest specific SITC categories of exports include; medicaments, glycosides and vaccines, watches, orthopaedic appliances and precious jewellery. Some raw ores or metals are exported, but the majority of the exports in this category are finished jewellery or other finished products. Agricultural products that Switzerland is famous for, such as cheese (0.29%), wine (0.05%) and chocolate (0.39%) all make up only a small portion of Swiss exports and agricultural products make up only a small portion of all exports. Switzerland’s main imports include; medicaments, cars, precious jewellery and other unclassified transactions. Key Sectors of the Economy Watch Making The Swiss have a long tradition of watchmaking, and are the uncontested leader in luxury watches, with brands like Audemars Piguet, Baume et Mercier, Breitling, Chopard, Franck Muller, Jaeger-LeCoultre, Longines, Patek Philippe, Piaget, Rado, Rolex, TAG Heuer, Tissot, or Vacheron Constantin producing most of the world's high-end watches.
  • 14. Vacheron Constantin was founded in Geneva, Switzerland in 1755 and is the oldest watch manufacturer in the world with an uninterrupted history. Switzerland is one of the leaders in exports of high-end watches as well as clocks. The most complex watch in the world is probably the Calibre 89 made by Patek Philippe for its 150th anniversary in 1989. It contains 1728 parts, and four people spent nine years working on it from initial research and design to final assembly. The quality of Swiss products is the basis of a successful export economy. The Swiss have a reputation for hard work and a tendency towards precision.A luxury watch consists of more than 300 parts. A great deal of thought and meticulous work is put in to fitting the most complex mechanisms into the smallest casings. The materials used for a watch make up just a fraction of the cost of the finished product. Switzerland is also known for the world's best selling plastic watch: the Swatch. In 2011, the exports of Switzerland reached nearly 19.3 billion CHF. Swiss watch manufacturers exceeded their previous annual result by 19.2%. The exports of those watches mainly go to Asia (55%), Europe (29%), America (14%), Africa and Oceania (both 1%). Banking and Financial Services Banking Banks and financial institutions play a key role in the Swiss economy. The Swiss franc is among the world’s most stable currencies. The Swiss capital market is one of the most
  • 15. important in the world, and the two major Swiss banks – UBS and Credit Suisse – are major forces in the global financial market.In 2009, the Swiss financial sector employed 195,000 people, or 5.8% of the entire Swiss workforce. In addition, the major Swiss banks employ several thousand staff overseas. The Swiss financial sector also exerts a major indirect influence on employment in other sectors of the Swiss economy.The Swiss are also world leaders in offshore private banking. In 2007, they managed close to 27% of all private offshore funds. Indeed, one third of UBS and Credit Suisse profits are generated by their offshore banking services.At the end of 2008, there were 327 banks in Switzerland, including branches of foreign banks. However, the home market is dominated by two banking goliaths - UBS und Credit Suisse. Together their share of domestic deposits and loans stands at over 30%, and their total assets are some six times higher than Switzerland’s Gross Domestic Product (GDP). Cantonal banks Switzerland’s cantonal banks are independent financial institutions. There are 24 cantonal banks in Switzerland, i.e. one for every canton, with the exception of Solothurn and Appenzell Ausserrhoden. The cantons either own the bank outright or are the majority stakeholder. Historically, the role of these banks was to strengthen and support the economy of their home canton through the provision of low-cost loans. These banks still operate primarily in their home canton, but are linked together nationally in the Cantonal Banks Group.
  • 16. Private banking Private banking is a centuries-long tradition in Switzerland. The first recorded private bank dates back to the 17th century. Private bankers assume unlimited liability for their business; if they go bankrupt, they can lose their entire private fortune. With the evolution of the banking market, private bankers are facing ever stiffer competition from the major banks, which now offer similar services. Cooperative banking Switzerland also has a network of cooperative banks, with 537 branches mainly in smaller towns and villages. Based on the “Raiffeisen model”, all branches operate completely independently, and their members not only take part in decision making but also bear joint responsibility for the fortunes of their branch. Islamic banking The first Islamic private bank, the Faisal Bank, opened in Geneva in 2006. Targeting wealthy non-Swiss and Islamic customers, it offers asset management services compatible with Islamic banking practices. Several Swiss banks now have branches in the Middle East offering similar services. International Comparison of Swiss financial services with its competitors Switzerland is a relatively small country in terms of population, but it is an international heavyweight when it comes to financial services. The table below provides an overview of the largest asset managers worldwide.
  • 17. Share of assets under management in international private banking, 2011 Source: Boston Consulting Group, 2012 Switzerland 27% United Kingdom 25% Luxemburg 6% Caribbean 13% Singapore and Hong Kong 13% United States 8% Other 8% Protection of privacy in financial matters – banking secrecy No other aspect of the Swiss banking system is surrounded by so many myths, legends and mistaken ideas as banking secrecy. For some, Swiss banking secrecy is a Swiss trademark, as impregnable as a fortress. For others, it is a dubious, even harmful
  • 18. institution that must be fought politically. Both perceptions collide with reality – the first standpoint is positively exaggerated, while the second is negatively charged. The reality is different. Banking secrecy forbids Swiss banks providing their parties with information about their clients, although this protection is not absolute. In some ways, banking secrecy is for bankers what the Hippocratic Oath is for doctors. In other words, it is there to protect the client, not the bank. The bank alone cannot lift banking secrecy. However, the client may relieve the bank of its duty of confidentiality and allow or even require it to disclose information covered by the banking secrecy law. Bank employees who violate that duty may be jailed or fined. In December 2012 the Swiss government finalised its anti-money laundering strategy for the Swiss financial centre. It states in very clear terms that Switzerland pledges to handle only declared financial assets. Moreover, with the proposed anonymous source tax, Switzerland reconciles two legitimate concerns: the right of countries to collect taxes on the one hand, and the rights of citizens to the protection of their personal privacy in financial matters on the other. Background Banking secrecy is borne out of a long tradition of discretion, on which the reputation of Swiss bankers was forged. Since 1935 it has been expressly incorporated in Swiss law. However, banking secrecy is not exclusive to Swiss legislation: it exists in several other countries with a highly developed banking and finance system, even if it is applied differently.
  • 19. Limits There has always been a limit to Swiss banking secrecy: neither money launderers nor terrorists can hide behind it, nor can anyone suspected of corruption or other serious offences. Numerous provisions of civil law, debt collection and bankruptcy law, criminal law, administrative criminal law, and mutual assistance in criminal matters provide for exceptions to banking secrecy. Accordingly, banking secrecy can be lifted against the client's will on the order of a judicial or supervisory authority. Furthermore, in March 2009, the Swiss government decided to withdraw its reservations to Article 26 of the OECD Model Convention with respect to administrative assistance on tax matters. Consequently, Swiss banks may supply information on a case-by-case basis to a foreign tax authority in response to a specific and substantiated request. However, the financial privacy of citizens who have not acted unlawfully will remain intact. Pharmaceuticals Switzerland is among the world's leading producers of chemicals and pharmaceuticals. The chemical industry focuses on dye-stuffs, perfume essences and food flavourings. The chemical and pharmaceutical industries export 85% of their output. The chemical industry is present in Switzerland for over 150 years. From the beginning, a small domestic market and the lack of chemical raw materials induced a focus on the production and world-wide marketing of specialized chemicals with high added value. Despite all changes which took place during the course of the years, this basic orientation has continued to be the key to success for the Swiss chemical and pharmaceutical
  • 20. industry, which today emphasizes heavily life-science products as well as high-value specialty chemicals. The Swiss chemical and pharmaceutical industry operates nearly exclusively in the field of specialties. Today 90 % of the Swiss chemical industry's overall product portfolio are specialties; a remarkable portion compared to international average. Producing more than 30'000 products, it is exceptionally differentiated. The global annual demand for some of these specialties often is below a few metric tons and even lower. The following major product groups can be distinguished in terms of areas of application: • Pharmaceuticals and diagnostics • Fine chemicals • Vitamins • Flavours and fragrances • Crop protection agents • Specialty chemicals for industrial-technical purposes • Pigments, paints and lacquers. This strategy of concentration on specialties is the Swiss chemical and pharmaceutical industry's key to success. With their high-grade specialised products Swiss companies have established a world-wide presence, and often a market leadership .Research and development for new products and processes are the lifeblood of the Swiss chemical and pharmaceutical industry. Using scientific findings and methodologies, the Swiss
  • 21. companies continuously develop new products and processes which satisfy existing and future requirements of customers. The necessary, significant investment into research can only be made if the companies can rely on future returns. Research expenditures are funded by the profits made from the sale of today's products. The most important ingredients for this innovation process are the scientific and technological know-how and the skills of the workforce. Their work is decisive for the success of a research or development project. Novartis, Roche, Merck Serono, Clariant etc. are some of the leading companies in this space. The Swiss chemical and pharmaceutical companies are present on all world markets as suppliers of speciality product. Leading export nation (bn EUR)
  • 22. Strong dependency on export Pharma Sales into regions Total exports and domestic sales 2011: 78.5 bn CHF The Swiss chemical and pharmaceutical industry is highly dependent on foreign trade.
  • 23. Worldwide sales World-wide sales of the "top ten" Swiss chemical and pharmaceutical companies Total 2011: 149.2 bn CHF Shipping and logistics Four per cent of Switzerland's Gross Domestic Product comes from the shipping and logistics sector. It employs some 130,000 people in Switzerland alone. The International Federation of Freight Forwarders Associations is based in Zurich.
  • 24. Shipping Surprising as it may seem for a landlocked country, Switzerland has a merchant navy, with around 30 ships transporting goods of all kinds apart from arms, operating under contract anywhere in the world. Their port of registration is Basel. The fleet - the most modern in the world - accounts for about 0.1% of world tonnage. Five companies sail ships under the Swiss flag. However, although there were once hundreds of Swiss working on these ships, nowadays very few of the sailors are Swiss nationals. Logistics With increasing globalisation efficient transport is becoming more and more important. Switzerland is home of two of the world's major logistics companies, Panalpina and Kühne and Nagel as well as numerous small firms. Basel is the centre of the sector.Their task is to ensure that their customers' goods and production elements are delivered to the right place at the right time, as modern manufacturers sub-contract work abroad. These manufacturers strive to cut costs as far as possible, and therefore need items delivered just when they are needed, according to the so-called "just in time" principle. Items delivered too soon incur warehousing costs; delivered too late leads to a break in production. Switzerland is one of the few countries in the world which trains professionals for the logistics industry, rather than expecting them to learn on the job.
  • 25.  Famous Swiss Companies Some of the world's most famous companies are Swiss, such as Adecco (human resources), Credit Suisse (banking), Lindt & Sprüngli (chocolate), Logitech (electronics), Mövenpick (hotels), Nestlé (food), Novartis (pharmaceuticals), Richemont (luxury goods), Schindler (lifts/elevators), Securitas (security), Swatch (watches) and UBS (banking). Also there were 48 Swiss companies on the 2013 Forbes Global 2000 list. The Forbes Global 2000 is an annual list of the world's 2000 largest publicly listed corporations. In the list, collectively, the Swiss companies had a combined market value of $1.389 trillion, with $4.588 trillion in assets; generating $1.022 trillion in revenues and $61 billion in profits. Some of the Companies were Nestle(32nd), Novartis(57th), Zurich Insurance Group(75th) , Roche Holding(93rd) and Credit Suisse Group(132nd) to name a few. Nestle : Nestle SA is a Switzerland-based holding company of the Nestle Group (founded in 1866) and is principally engaged in the development and production of food and beverage. The Group manages its Food and Beverages business through three geographic zones (Zone Europe, Zone Americas and Zone Asia, Oceania and Africa) and globally for Nestle Waters, Nestle Nutrition and Other Food and Beverages (Others). The Others segment includes activities of Nestle Professional, Nespresso, Nestle Health Science and the Joint Ventures in both Food and Beverages and Pharmaceutical activities. The Group's products are diversified into seven product groups: Powdered and Liquid Beverages; Water; Milk products and Ice Cream; Nutrition and HealthCare;
  • 26. Prepared dishes and cooking aids; Confectionery and PetCare. In addition, the Group manages a number of brands diversified into specific product groups like Baby foods, bottled water, coffee, drinks, food service, sport nutrition and weight management, among others. Novartis : Novartis AG founded in1970 provides healthcare solutions. The Company is a multinational group of companies specializing in the research, development, manufacturing and marketing of a range of healthcare products led by pharmaceuticals. Its portfolio includes medicines, eye care, cost-saving generic pharmaceuticals, preventive vaccines and diagnostic tools, over-the-counter and animal health products. The Company has five segments: Pharmaceuticals, which include patent-protected prescription medicines; Alcon, which include surgical, ophthalmic pharmaceutical and vision care products; Sandoz, which include generic pharmaceuticals; vaccines and diagnostics, which include human vaccines and blood-testing diagnostics, and consumer health, which include over-the-counter medicines (OTC) and Animal Health. Zurich Insurance Group Limited: Zurich Insurance Group Limited is a Switzerlandbased holding company engaged in the insurance sector which was founded in the year 1872. The Company provides a range of general and life insurance products and services for individuals, small business, mid-sized and large-sized companies, and multinational corporations. The Company offers its products and services through three business segments, namely General Insurance, Global life and Farmers. The General Insurance
  • 27. segment offers motor, home and commercial products and services for individuals, as well as small and large business. The Global life segment offers life insurance, savings, investment and pensions solutions. The Farmers segment includes farmers management services, which provides non-claims management services to the farmers exchange, as well as Farmers Re business, which includes reinsurance assumed from the Farmers Exchange by the Company's group. Furthermore, the Company provides reinsurance and insurance business considered as non-core business. Roche Holding: Roche Holding AG is a Swiss pharmaceuticals and diagnostics holding company founded in 1896. It belongs to the Roche Group that operates through subsidiaries and associated companies around the world. It discovers, develops and provides diagnostic and therapeutic products and services from early detection and prevention of diseases to diagnosis, treatment and treatment monitoring. The Company has two divisions: Pharmaceuticals and Diagnostics. Pharmaceuticals are divided into two sub-divisions: Roche Pharmaceuticals and Chugai. It operates in the United States, Western Europe, Japan, CEMAI (Central and Eastern Europe, Middle East, Africa, Central Asia, Indian Subcontinent), Latin America, Asia-Pacific and Other regions. Diagnostics include five business areas: Applied Science, Diabetes Care, Molecular Diagnostics, Tissue Diagnosis and Professional Diagnostics. It operates in five geographical regions: Europe, Middle East and Africa (EMEA); North America; AsiaPacific; Latin America, and Japan.
  • 28. Swiss Re: Swiss Re AG is a Switzerland-based holding company of Swiss Re Group (the Group) founded in 1863. The company provides wholesale reinsurance and insurance products, insurance-based capital market instruments, and supplementary risk management services to Property & Casualty, as well as for Life & Health clients and brokers worldwide. It diversifies its activities into Property & Casualty, offering traditional reinsurance and insurance products for corporate clients, Life & Health, offering reinsurance to life insurance companies worldwide and acquires closed life and health books of business which it administers through Admin Re, and Asset Management (included in other business segments), engaged it management of the assets that the Group generates and setting of the Group's investment strategy. Credit Suisse Group: Credit Suisse Group AG (Credit Suisse) is a global financial services company founded in 1982. The Company operates in three segments: Private Banking, Investment Banking and Asset Management. In Private Banking, it offers advice and a range of financial solutions to private, corporate and institutional clients. Investment Banking provides a range of financial products and services, with a focus on businesses that are client-driven, flow-based and capital-efficient. Asset Management offers products across a range of asset classes, including alternative investments such as hedge funds, private equity, real estate and credit, and multi-asset class solutions, which includes equities and fixed income products.
  • 29. UBS: UBS AG founded in 1998 is a client-focused financial services company that offers a combination of wealth management, asset management and investment banking services on a global and regional basis. UBS AG is the parent company of the UBS Group (Group).The operational structure of the Company consists of the Corporate Center and four business divisions: Wealth Management & Swiss Bank, Wealth Management Americas, Global Asset Management and the Investment Bank.
  • 30.  Present Economic Condition in Switzerland GDP Annual Growth Rate of Switzerland The Gross Domestic Product (GDP) in Switzerland expanded 2.50 percent in the second quarter of 2013 over the same quarter of the previous year. GDP Annual Growth Rate in Switzerland is reported by the State Secretariat for Economic Affairs. Switzerland GDP Annual Growth Rate averaged 1.68 Percent from 1981 until 2013, reaching an all time high of 7.30 Percent in March of 1990 and a record low of -3.70 Percent in June of 2009. In Switzerland, the annual growth rate in GDP measures the change in the value of the goods and services produced by the country economy during the period of a year.
  • 31. Inflation Rate of Switzerland The inflation rate in Switzerland was recorded at 0 percent in August of 2013. Inflation Rate in Switzerland is reported by the Federal Statistics Office of Switzerland. Switzerland Inflation Rate averaged 2.63 Percent from 1956 until 2013, reaching an all time high of 11.92 Percent in December of 1973 and a record low of -1.37 Percent in June of 1959. In Switzerland, the inflation rate measures a broad rise or fall in prices that consumers pay for a standard basket of goods.
  • 32. Current Account to GDP of Switzerland Switzerland recorded a Current Account surplus of 13.50 percent of the country's Gross Domestic Product in 2012. Current Account to GDP in Switzerland is reported by the Swiss Federal Statistical Office. Switzerland Current Account to GDP averaged 7.59 Percent from 1980 until 2012, reaching an all time high of 15.60 Percent in December of 2010 and a record low of -0.60 Percent in December of 1980. The Current account balance as a percent of GDP provides an indication on the level of international competitiveness of a country. Usually, countries recording a strong current account surplus have an economy heavily dependent on exports revenues, with high savings ratings but weak domestic demand. On the other hand, countries recording a current account deficit have strong imports, a low saving rates and high personal consumption rates as a percentage of disposable incomes.
  • 33.  Trade The quality of Swiss products is the basis of a successful export economy. The Swiss have a reputation for hard work and a tendency towards precision. Overall, the important areas for Swiss exports are micro-technology, high technology, biotechnology, the pharmaceuticals industry and banking and insurance know-how.Swiss products can command high prices in world markets because consumers are ready to pay for high quality. In Switzerland, a higher percentage of people work in research and development than in other industrialized countries. Switzerland has virtually no mineral resources and a restricted surface area. It depends for its wealth on foreign trade. The relatively small size of its domestic market - a total population of just over 7,785,800 - is another factor which has encouraged Swiss manufacturers to look abroad: they need foreign markets in order to make investment in research and development worthwhile. Switzerland imports bulky raw materials and exports high-quality goods. Swiss companies are extremely competitive in world markets. In some branches, more than 90% of goods and services are exported. The best-known export items are watches, chocolate and cheese, but in fact mechanical and electrical engineering and chemicals together account for over half Swiss export revenues. Main Imports: Machinery and transport equipments, medicinal and pharmaceutical products, other chemicals, manufactured goods
  • 34. Main Exports: Chemicals, clocks and watches, food, instruments, jewelry, machinery, pharmaceuticals, precious metals, textiles, Rolex.
  • 35. Switzerland's main trading partners are European Union members. They are: Imports Partners: Germany (27.7%), U.S. (10.6%), Italy (10.3%), France (8.4%), Russia (4.4%), U.K. (4%) Exports Partners: Germany (21.2%), U.S. (8.7%), France (8.2%), Italy (7.9%), Austria (4.5%) Swiss economic policy has always been based on free trade, with low import duties and virtually no import quotas - the only exception being for agricultural produce. Even here many of the restrictions are being eased as a result of recent agreements with the EU. Home to the World Economic Forum Switzerland is the home of the World Economic Forum (WEF), an international organisation which brings together world leaders from the realms of politics and business, to discuss and shape future policies. The WEF, which has its headquarters in Geneva, was founded in 1971 by a German-born professor of business, Klaus Schwab. It is best known to the general public for the annual meeting it holds at the end of January in the Swiss resort of Davos, where world economic and social problems are debated. This is attended by presidents and prime ministers, the heads of major economic organisations, representatives of NGOs, intellectuals and even show business
  • 36. personalities.The WEF describes its agenda as improving the state of the world. Among its recent achievements it cites the "Resilient Dynamism" (2013).  Trade relations between Switzerland and India Major items which Switzerland exports to India Swiss exports to India consist of machinery and equipment (electrical and mechanical), precision instruments, pharmaceutical products dyes and chemicals, fertilizers, watches etc. Indian stands at 14th position worldwide in terms of countries importing from Switzerland with a contribution of 1.2% in Switzerland’s exports. Switzerland stands at 3rd position in terms of countries exporting to India after China and UAE. Almost 90% of Switzerland’s exports comprise of Gold, precious stones and other jewellery items. Excluding Gold, Switzerland has provided parts for nuclear reactors for the purpose of power generation. Given that nuclear power is poised for accelerated growth in India, Swiss suppliers of equipments and parts have a good opportunity to do business with India. Major items which Switzerland imports from India The main items which Switzerland imports from India are textiles and garments, organic chemicals, precious stones and jewellery, dyestuffs, machinery and parts, leather products, shoes and shoe uppers, cotton, plastics, coffee, tea, and hand-knotted carpets. Switzerland stands at 44th position worldwide in terms of countries importing from India.
  • 37. India stands at 22ndposition worldwide in terms of countries exporting to Switzerland with a contribution of just 0.5% in Switzerland’s imports.  Conclusion Thus, one will be able to see that Switzerland is a prosperous, welfare oriented and a peace loving nation. It is focusing on its export oriented sectors for its growth. That can be very well seen in the present economic environment where it is having Current Account Surplus which only a few economies in the world are capable to achieve especially in this tough international market. It has always ensured that it does not lose its competitive advantage in the international market in the areas of Watch Making, Pharmaceutical, Banking and Financial Sectors in order to sustain or perhaps even further increase its exports. It has always looked to maintain its distinct identity in these sectors. That is why Switzerland enjoys the goodwill and is respected by various countries worldwide. So, a developing country like India can take inspiration from this small country if it has to increase its exports which will also enable India to take control of its Current Account Deficit and at the same time increase its Foreign Exchange Reserves. Like Switzerland, even India should look to focus on its strengths and encourage exports in those sectors.
  • 38. SUBMITTED BY SREENIVAS SANKAR IYER

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