English and Danish are mandatory subjects in school. A stable democracy with an active consumer economy.Overall, Iceland was the United States’ 104th largest goods export market in 2010. U.S. goods exports to Iceland in 2010 were $325 million and of that $76 million were ‘special other’ low value shipments, such as, kitchenwares.
The Nordic region is a large and sophisticated marketplace and the eighth largest economy in the world. It is considered worldwide to be an excellent test market for new products and an easy-to-enter market for new-to-market companies.Marketing strategies will be very similar to those we already use in the United states. Nordic countries have close ties to the United States culturally and historically. American consumer products are popular in Iceland. There are numerous examples of U.S. products that have a higher market penetration per capita in Iceland than anywhere else in Europe. Especially the U.S. entertainment products and exposure to American entertainment products appears to have a synergistic effect on sales of other U.S. goods and services.
Political: Republic with constitution and parliamentary form of government.Population: 318,236 Language: Icelandic; aGDP: $12 billion Nordic language. All business is done in English. Literacy Rate: 99.9%Per Capita: $38,035 Business Environment: Low tax structure, high education levels and competitive costs for skilled labor, land and electricity. Accepting of American consumer goods.
13% of selling price Exclusive selling rights 2 year contract
8th Largest economy Test Market: Easy to Enter Close ties to U.S.Synergistic effect ofAmerican entertainment
18% corporate tax rate and no local tax rate applied No Net Worth taxes on Companies Minimum RED TAPE Income tax lowest in Europe and among the OECD Tariff Free Market EEA: Free Trade Zone
300,000 Sales Volume-210,000 Mark Up 90,000 Cost of Product 7,200 Shipping Costs 97,200 Cost of Production and Shipping 39,000 Consignment Rate (13%) 136,200 TOTAL 300,000 Sales Volume-136,200 Total Cost 163,800 Profit for 1 and 2 years
Register with the Register of Enterprises: www.rsk.is Time: application for a new company can be completedin one day. Incorporation fee for private limited company:1,137 USD Capital: minimum of $34,849 paid within 1 year ofregistration
ReferencesCentral Intelligence Agency. (2011, July 7). World Fact Book. Retrieved July 28, 2011, from https://www.cia.gov/library/publications/the-world- factbook/geos/ic.htmlHill, C. (2011). Global business today. Boston: McGraw Hill/Irwin.Iceland Trade Directory. (2011). Iceland Trade Directory. Retrieved July 28, 2011, from http://www.icelandexport.is/english/investing_in_iceland/busi ness_guide_to_iceland/Invest in Iceland and Promote Iceland. (2011, April). Doing Business in Iceland. Retrieved July 28, 2011, from Invest in Iceland: www.invest.isU.S. Department of Commerce. (2011). Doing Business in Iceland: 2011 Country Commercial Guide for U.S. Companies. Retrieved July 19, 2011, from www.export.gov/iceland