BUS 5010: Culture in a Global Business Environment
Module 2 Worksheet: National Differences Analysis
National Differences Analysis
Directions: Different countries use different economic philosophies and models based on many different variables. Complete this
worksheet using the directions within to guide you.
Submit your completed worksheet in the “Assignment and Grades” tab in your course menu. When you have submitted this
assignment for grading, please return to your module for a wrap-up.
Open
Economic System
Mixed
Economic System
Command
Economic System
BUS 5010: Culture in a Global Business Environment
Module 2 Worksheet: National Differences Analysis
What are the positive
characteristics of each
economic system?
1. The open economic system
opens up the economy for
better business opportunity.
The system allows free market
and production is determined
by the laws of demand and
supply (Economics in context
Initiative , 2021)
1. This system discourages
and protects exploitation of
consumers for excessive gain,
unreliable products, and
consumer rights and so on…
2. The system creates
opportunity for market balance
and control as well as
2. The Open market create
promotes industrialisation
market expansion and
through policies that
industrialisation, the people are encourages entrepreneurship
not limited by stringent laws
and market globalisation.
and they can operate with less (Economics in context Initiative
restraints (Economics in context , 2021)
Initiative , 2021)
3. The system promotes social
3. The consumers in an open
well-being, income mobility,
economic system enjoy variety social index mobility and
of product options, price
better-living due to economic
advantage due to fierce
growth and improved per
competitions amongst
capital income through
producers. (Economics in
coordinated distribution of
context Initiative , 2021)
wealth and social amenities.
(Economics in context Initiative
4. The system creates an
, 2021)
opportunistic environment for
those who has the opportunity
4. The system protects labour
to exploit from scarce means
rights ,labour exploitation and
for the purpose of greater
opportunity for labour to seek
benefits or margin(Economics
for justice and better living
in context Initiative , 2021)
5. It helps in promoting public5. The system encourages
private partnerships, facilitating
innovation and continuous
institutional cohesion and
development. Merchants within promoting overall national
1. The systems helps
preserve, protect, national
culture and beliefs from the
negative influence of market
globalisation (Economics in
context Initiative , 2021)
2. The system encourages
consistent, sustainable
national development
programs through smooth
power transitioning and
continuity (Economics in
context Initiative , 2021)
3. The system discourages
and protects her people from
income inequality, social
inequality and social class
gaps. (Economics in context
Initiative , 2021)
4. The system is centrally
coordinated with adequate
support from Government in
terms of production decision,
management decision and
growth potential. (Economics
in context Initiative , 2021)
5. The system promotes
average social well-being,
collectivism, social unity and
responsibility. (Economics in
context Initiative , 2021)
BUS 5010: Culture in a Global Business Environment
Module 2 Worksheet: National Differences Analysis
this society continuously seek
gains. (Economics in context
competitive advantage to create Initiative , 2021)
a niche for their product.
(Economics in context Initiative
, 2021)
BUS 5010: Culture in a Global Business Environment
Module 2 Worksheet: National Differences Analysis
What are the negative
characteristics of each
economic system?
1. This system encourages
labour and consumer
exploitation. The ideology is to
minimise as much coststructure as possible to
maximise possible gains at the
expense of other factors of
production. (Economics in
context Initiative , 2021)
2. The system does not pay
attention to environmental
degradation as a result of
industrialisation activities which
are destructive to life.
3. Entry barriers are very weak
which could be disastrous for
growing local competitors.
1. Economic program
continuity is not guaranteed
relative to possible exchange
of power with different goal
mindset or policies by political
parties. The political parties
may vary in economic agenda
which may hamper economic
growth and stability.
(Economics in context Initiative
, 2021)
2. Corruption and self Interest;
It is easy for some large
corporations to influence
policies or support in favour of
themselves It could be
overlooked exploitation, tax
evasion or influencing policies
1. Increased poverty index; In
a bid to centrally manage and
control the economic resource,
sharing available resources
among the people against their
free will with less consideration
of individual inputs may lead to
decrease efficiency and
outputs which in turn affects
optimum economic
performance. (Economics in
context Initiative , 2021)
2. Stagnation; This may occur
as a result of decrease in
labour, depleting economic
resources, slow technological
advancement.
3. Lack of free-will and
4. Lack of control in the market 3. Social- cultural influence;
freedom; The economy forbids
creates opportunity for
Since mixed economies
unionism and wage
counterfeiting, product imitation, promotes globalisation, cultural negotiation. The system is
unreliable and weak quality
shifts or influence is bound to
controlled such that the
products.
set-in, this may affect the
government determines what
ethical standard or values of
is payable as wages without
5. Prices are set by the forces
some countries within this
any power of negotiation from
of demand and supply which
circle
labour. (Economics in context
causes inflation and economic
Initiative , 2021)
stagnation. (Economics in
4. Weak Income mobility
context Initiative , 2021)
advantage; the system
4. Weak economic growth and
promotes the rich and large
development; the growth rate
corporations. These entities
of the economy would either
get more attention and favour
be stagnant, slow or retarded
from the government which
as there would be no
projects them at a better
significant development as a
BUS 5010: Culture in a Global Business Environment
Module 2 Worksheet: National Differences Analysis
advantage over the poor or
result of decline in innovation
small organisations
as well as a bilateral trade
(Economics in context Initiative
, 2021)
5. Poor infrastructural
development as a result of
5. Stagflation; This is as a
weak economic gains or low
result of slow economic growth government spending on
as well high product prices.
infrastructure. (Economics in
Inflation May increase at the
context Initiative , 2021)
expense of slow economic
growth. (Economics in context
Initiative , 2021)
BUS 5010: Culture in a Global Business Environment
Module 2 Worksheet: National Differences Analysis
List one country as an
example of each economic
system.
Name of Country: Finland
What are the political aspects
to consider before doing
business with each of the
three countries you identified?
1. The political stability index in
Finland is relatively good with
an average of 1.36 and a
minimum of 0.86 within a period
of 23 years till 2020. (World
bank Group) This signifies that
the country is relatively stable
and considered a good
business destination.
Name of Country: United
States
Name of Country: Cuba
1. The political stability Index in 1. The political stability index of
the US is relatively low which
Cuba is averagely good
could generate skepticism
since it has only operated a
doing business in the country.
single party system. Since
The average stability index
the inception of the
within a period of 23 years is
communist regime in 1959.
0.44 with the minimum at The political arena has been
0.23. -0.25 is considered weak
considerably stable for the
while 2.5 is considered strong
past 30 years.
(The world bank)
2. The social welfare policies in
2. The social welfare of the
Finland conforms to the Nordic 2. The social welfare policies in
environment is poor. Basic
model policy on social well-well- the US is fairly good but not as
social amenities are
being growth. This signifies that good as other developed
expensive to access. No
there is adequate provision of
countries. The private
significant infrastructure to
social welfare services like
institutions for the provision of
support development and
healthcare, power and basic
Social welfare supports.
growth. (Economics in
infrastructures. This is also a
Although, this signifies that
context Initiative , 2021)
good pointer for investors.
basic social infrastructure can
(Finland, 2013)
be accessible. (kovelman et
3. The environment practices
al., 2012)
protectionism and planned
3. Finland is an EU member
socialism which relatively do
state with trade relations with
3. US foreign trade regulations not give the opportunity to
the WTO. All trade regulations
favours some selected
attract business outside the
within EU states exist with
countries with Free Trade
country. The Government is
Finland. Finland enjoys
Agreements. Countries within
keen on building extensive
multilateral trade with EU
this circle will enjoy tax free
economic growth with internal
countries based on the EU
exports and imports on
resources which at times might
trade tax policies. As an open
products categories covered
not be sufficient. (Economics in
market economy, Finland would under the FTA regulations.
context Initiative , 2021)
be attractive to so many
(kovelman et al., 2012)
investors within the EU member
BUS 5010: Culture in a Global Business Environment
Module 2 Worksheet: National Differences Analysis
states. (Finland Political
stability-data, chart, n.d.)
BUS 5010: Culture in a Global Business Environment
Module 2 Worksheet: National Differences Analysis
What are the legal aspects to
consider before doing
business with each of the
three countries you identified?
1. In 2019, The Finnish
Companies ACT was amended
to remove minimum share
capital of £2500 for limited
liability companies with the
intention to promote small
private businesses. The
amendment is not applicable to
public liability companies.
1. In the US, there are several
restrictions on the description
of which sector a foreign
investor can invest in.
Investments in these sectors
are restricted mainly for US
citizens or US controlled
entities. This could be seen
under foreign investment and
national security Act of 2007
(FINSA) as well Committee on
Foreign investments in the
united states( CFIUS)
1. In Cuba, foreign direct
investments must be in the
form of a joint venture,
International economic
association agreements or
totally foreign capital company.
The trade laws of Cuba are
found in the
Bustamante Code, which acts
as the trade Act in Cuba.
2. Finland promotes Innovation
Foreign investors are allowed
and protects Intellectual
to trade in any sector in Cuba
property rights. The Finnish
except for health, education
Government conforms to
and the armed forces.
different applicable laws under 2. The US patent rights is been (Sanchelima, 2001)
IP protection, National Board of covered and monitored under
Patents and Registration
US Patent and Trademark
2. The Intellectual property
(NBPR) or with the European
Office (USPTO). The US
rights in Cuba is protected by
Patent Office (EPO) .
patent rights covers the
The Cuban Industrial Property
structural and functional aspect Office (OCPI) under the patent
3. Employees / labour is
of an invention which is not
laws codified in Decree-Law 68
protected by collective
limited to ideas & methods,
of May 14, 1983. An IP can be
bargaining agreement in
manufacturing, process etc.
protected through a first filling
Finland. Employee’s interests
advantage with a contest
are well protected, private or
3. Employees in the US are as within 60 days of filling.
public under collective
well protected under the
(Sanchelima, 2001)
bargaining and agreement law collective bargaining
even when the company is not agreement in terms of job
3. Labours of any foreign
unionised. (Suvi Knaaplia et al., security, remuneration,
investment in Cuba must be a
2019)
occupational safety and health citizen or a permanent
under the National Labor
residence in Cuba.
Relations Act (NLRA), the Taft- Employment and terms of
Hartley Act and state "right to
employment must be advised
work" laws.
through the Ministry of Foreign
Trade and Investment and
authorised by the Ministry of
BUS 5010: Culture in a Global Business Environment
Module 2 Worksheet: National Differences Analysis
Labour and Social Security.
(Sanchelima, 2001)
BUS 5010: Culture in a Global Business Environment
Module 2 Worksheet: National Differences Analysis
What are the economic
aspects to consider before
doing business with each of
the three countries you
identified?
1. The GDP per capita In
Finland is about 348% of the
world's average. The overall
economic growth index of
Finland signifies that the
economic state is healthy with
an average GDP growth rate of
4.2% from 2021 till date.
(Siimes et al., 2020)
1. The US GDP per capita is
about 463% of the world’s
average. The US economy is
regarded as the number one
economy in the world,
recording ownership of about
121 companies of the world’s
fortune 500 companies. The
viability of Us Market is further
proved by the numbers of
2. Finland Household per
world largest companies by
Capita is about $27,000 USD in market capitalisation, the
2020 which signifies high
United States houses about
propensity to consume due to
60% of the first 10 companies.
high disposable income.
(Trading economics, 2021)
Household consumption is
2. The US household per
about 55% of the country’s
capita income is one of the
average expenditure. (Ross,
best in the world. The current
2020).
household per capita is about
$33,700 as at DEC 2020.
3. The inflation rate in Finland is Historically, the US has the
averagely stable around 3.2%
highest marginal propensity to
in December 2021. The inflation consume (MPC) which was
has been projected at an
approximated to about 5%.
average of 1.8% in 2022.
This signifies that there is a
Interest rate is averaged at
high rate of disposable income
1.72% from 1998 till date. This in the US. (Kovelman et al.,
is a good pointer for investors
2012)
and future borrowers. (Siimes
et al., 2020)
3. The United States has been
making efforts to manage their
Interest rates and inflation rate.
The inflation rate in the US is
about 7.5% and interest rate is
at 0.25% which has been
relatively stable since 2021.
1. Cuba is next to Venezuela in
terms of economic freedom
from amongst the regions in
America with 29.5 which
indicates a weak fiscal health.
Cuba has lost 4.4 points since
2017 making it ranked below
the “repressed” category.
2. The Gross Domestic product
of Cuba as at 2019, was about
103 billion USD making it at
the 11th position out of 32
regions in America. The
Annual growth rate recorded
as at 2021 is -11.1% which
indicates improvement in
economy due to trade and
investments after the great hit
of Covid 19. A major
improvement of 7.9 % growth
occurred in July 2021 after a
decline of about 13.1 % in
January same year.
3. The GDP per Capita in
Cuba as at 2019 stood at
8026.80USD after reaching the
highest of all time since 1970
at 8040.99 USD in 2018. It has
since experienced a decline
which has been projected to
reach 6630.00USD in 2022.
BUS 5010: Culture in a Global Business Environment
Module 2 Worksheet: National Differences Analysis
Low interest rates can be
favourable and unfavourable
for the US economy.
(Kovelman et al., 2012)
BUS 5010: Culture in a Global Business Environment
Module 2 Worksheet: National Differences Analysis
What are the cultural aspects
to consider before doing
business with each of the
three countries you identified?
1. The Finns are highly
educated people, they value
education and literacy.
Economic competitiveness is a
major strength of the Finns.
Hence they take general
education and literacy very
seriously. 99% of the population
in Finland are literate.
2. The Finns are not socially
exposed to other cultures
hence there might be slight
cultural misunderstandings
when within foreigners.
However, the Finns are highly
polite and respectful people.
They are accommodating and
adorable.
3. The majority of the Finns
population live in Urban areas
about 2/3 of the entire
population live in the urban
centers. Urbanisation obviously
does not affect work-life
balance. Many Finns now
prefer to work part-time as well
as remote working.
1. The US is considered the
home of immigrants. America
houses the majority of
immigrants from all parts of the
world which indicates the
tolerance ratio of Americans
and the open perception to
other cultures. America treats
and tolerates foreigners with
respect as everybody is
expected to enjoy equal rights.
2. America's approach to
business is unique. They take
business first. Which means
they would not compromise
personal sentiments above
business decisions. They take
business ethics very seriously
and would never be late for a
business meeting.
3. America tolerates all
religious backgrounds, without
discrimination. Although, some
misunderstanding may occur
due to some extremist activity
but not a general behaviour of
all. Since America houses all
religious beliefs without
restrictions, there might be a
wide range of heterogeneous
taste, ethics and culture within
the US.
1. Cubans are not hostile to
foreigners. Cuba generates an
average of 10 billion USD from
tourism and tourists. This
indicates that Cuba welcomes
foreigners who are tourists to
enjoy the serenity of their
environment.
2. Due to the cultural
background of the communist,
there is no pronounced
hierarchical class amongst the
people. However, Cuban’s
appreciate being respected.
Many get frustrated due to the
bureaucratic nature of
processes and operations
which makes applications and
trade relations difficult.
3. Cuba was formerly an
atheist state under the rule of
Castro. The 1992 amended
constitution renamed Cuba as
a secular state with no
interference of religion or
religious beliefs on governance
or constitutional decisions.
BUS 5010: Culture in a Global Business Environment
Module 2 Worksheet: National Differences Analysis
Write a 250-500 word
response in which you
address the following prompt:
Your Chosen Country: ________FINLAND________
Provide your 250-500 word explanation for why you would want to do business in this country.
Which of the three countries
would you most want to do
business with? Why?
Finland has been praised over the years for its excellent business climate for both home companies and foreign investments. The country has recorded so many landmark records relative
to social well-being or her people, strong better-life index, social equality as well good social
progress index.
In fact, what would you expect from a well-functioning transparent government with effective state
institutions, structures, infrastructures and a dependable state judiciary. No wonder it was ranked
the happiest country in the world by the World Happiest Index, 2021.
These indexes are pointers to the fact that sustainable business growth can be achieved in
Finland. Little did you know that world big brands like Nokia, Kone, Rovio are companies nurtured
in Finland. The success of these companies can be accounted for based on the human and
material resources that engulfs the creative land called Finland. (Palomäki, n.d.)
Social Progress Index: Finland tops the world in social progress index with about 90.9%. This
measure was taken from three dimensions: Basic human needs, Foundations of well-being and
Opportunity.
Basic human needs measure the provisions of the Finland government based on Maslow’s needs
hierarchy:
• Nutrition and basic medical care,
• Water & Sanitation,
• Shelter and
• Personal safety.
Foundations of well being also shows provisions in access to
• Basic Knowledge
• Information and communication
• Health and Wellness
• Environment Quality
BUS 5010: Culture in a Global Business Environment
Module 2 Worksheet: National Differences Analysis
Opportunity which refers to opportunities open to citizens and foreign investors which are
• Personal freedom and Choice
• Access to advanced education
BUS 5010: Culture in a Global Business Environment
Module 2 Worksheet: National Differences Analysis
• Tolerance and Inclusion
• Personal rights
As a result, Finnish environment becomes more attractive and professional for International trade
and ease of doing business. The provision and availability of basic social amenities and
infrastructures would boost and enhance trade and investments as the availability of the duo will
improve factors of production and reduce associated cost structures. (Economics in context
Initiative , 2021)
Market Potential: The Population of Finland is about 5.5 million people with high propensity to
consume due to high disposable income. More so, 2/3 of this population resides in the urban
cities indicating huge market availability for business. Furthermore, Finland has multilateral trade
relationships with EU countries, OEDC countries which makes business globalisation much easier
if required. (Väänänen, 2021)
Stable political climate for sustainable growth: The Climate of Finnish society has recorded
stability for the past 20 years. With an average annual GDP growth rate of 2.11% from 1976 till
2021, Consistent economic and trade policies, incentives and support for corporate businesses.
Finland’s corporate tax is amongst the lowest in the EU with just about 20%, an agile educated
workforce and advanced facilities for innovation and growth.
Protection of Rights and Intellectual properties: Finland is protected by the National Board of
Patents and Registration (NBPR) or with the European Patent Office (EPO) securing the rights of
innovators and researchers designing exceptional competitive models to support their business /
operations.
In conclusion, the availability of platforms such as the above mentioned in Finland makes it more
than attractive to set up sustainable business operations. (Väänänen, 2021)
BUS 5010: Culture in a Global Business Environment
Module 2 Worksheet: National Differences Analysis
References
Economics in Context Initiative. 2021. “Comparative Economic Systems: Capitalism and Socialism in the 21st Century.” An ECI
Teaching Module on Social and Economic Issues, Global Development Policy Center, Boston University.
Finland. (2013, June 28). Business Culture. https://businessculture.org/northern-europe/finland-businessetiquette/
Finland Political stability - data, chart. (n.d.). TheGlobalEconomy.com.
https://www.theglobaleconomy.com/Finland/wb_political_stability/
kovelman, R., Walsh, T., R West, P., & S Zengerle, L. (2012, March 1). Doing business in the United States. Practical Law.
https://uk.practicallaw.thomsonreuters.com/8-501-3531?transitionType=Default&contextData=(sc.Default)&firstPage=true
Palomäki, M. (n.d.). Business environment. Www.businessfinland.fihttps. https://www.businessfinland.fi/en/do-business-withfinland/invest-in-finland/business-environment
Ross, S. (2020, February 12). Comparing marginal propensity to consume: U.S. versus the world. Investopedia.
https://www.investopedia.com/ask/answers/060415/how-does-marginal-propensity-consume-united-states-compare-othercountries.asp
Sanchelima, J. (2001, June 23). Intellectual Property Laws Of Cuba - Intellectual Property - United States. Www.mondaq.com.
https://www.mondaq.com/unitedstates/Intellectual-Property/11648/Intellectual-Property-Laws-Of-Cuba
Siimes, T., Waaralinna, A., Haapaniemi, O., Paanajärvi, A., & Segercrantz, M. (2020, March 1). Doing Business in... Global Guide.
BUS 5010: Culture in a Global Business Environment
Module 2 Worksheet: National Differences Analysis
Practical Law. https://global.practicallaw.com/dbi-guide
Sonwalkar, J., & Soni, N. (2015). Strategies for Doing Business with Bulgaria. Journal of Management Research and Analysis, 2(4),
277. https://doi.org/10.5958/2394-2770.2015.00006.x
Suvi Knaaplia, Iisa Koskela, & Seppo Havia. (2019, January 25). Employment & labour law in Finland. Lexology.com.
https://www.lexology.com/library/detail.aspx?g=b03caa90-2830-4194-a967-6cceaa561e7e
Trading economics. (2021). United States Fed Funds Rate. Tradingeconomics.com. https://tradingeconomics.com/unitedstates/interest-rate
Väänänen, H. (2021, November 15). What Finland’s Business Success Can Teach The Rest Of The World. Forbes.
https://www.forbes.com/sites/heikkivaananen/2021/11/15/what-finlands-business-success-can-teach-the-rest-of-theworld/?sh=622466667dd2