Switzerland: Financial Factors for International Trade

1006 Words3 Pages

Economic Analysis
This report analyzes the financial statistics to comment on the economic health of Switzerland. Just as the culture suggests diversity, Switzerland combines many of the East European economic values to create a diverse and healthy economy for their citizens. For example, Switzerland government provides a universal social security citizen to increase standard of living for the country. Citizens are able to enjoy benefits of unemployment, disability insurance, health and accident insurance, and family insurance. The benefits offered to the citizens of Switzerland improves literacy rates, secondary education statistics, and overall, the country’s ability to produce sound and intellectual individuals. Even though the benefits of universal social security system are advantageous to the standard of living for Switzerland, the social security system can also decrease GDP (Gross Domestic Product) in future years. With the steady growth of the population of citizens 65 years and older, who receive the most amount in benefits, causes increase spending and government hardship. The economic health of GDP depends upon the financial statistics of GDP, quality of life indicators, and the ability to trade internationally by sustaining free market policies and attracting foreign capital.
Gross Domestic Product
Overview of Gross Domestic Product. Ranked as one of the world’s most competitive economies, Switzerland’s 2012 record of GDP is $631.2 billion (citation). With a population in 2012 of 7.99 million, Switzerland serve as an important investment area for the international market. The GDP is stated to remain steady at 2% in 2013 and 2014 along with inflation, because of the slow economic factors affecting European countries. ...

... middle of paper ...

...tractive destination for doing business. (Citation)
Protection of Property Rights. Switzerland was a strong supporter of the Intellectual Property Rights text in the GATT Uruguay Round negotiations. The country holds a strong legal system for the protection of property rights for domestic and foreign practices. However, Switzerland chose not to prosecute on Internet piracy. (Citation) The actions chosen could results in a decreasing number of foreign investments as the global market through the World Wide Web emerges.
Corruption. Bribes are considered a crime through business practices and punishable for up to 5 years in prison. US firms investigating in Switzerland have not complained of corruption of Swiss firms in recent years. (Citation) Laws governing corrupt practices open the doors for multinationals to invest in a political and stable economic environment.

Open Document