International Business & Strategy Essay Example | Topics and Well Written Essays - 3000 words - 1

International Business & Strategy - Essay Example When starting a banking business, the investor should consider various factors related to the environment where the business is to be established. Factors such as political, economic, social, technological and legal aspects of a country have direct and indirect effects on the performance of the business. Denmark is the smallest Scandinavian country in the Northern Europe (The Local DK, 2014). It has a pollution of about 5,613,706 million people, and 93% of the populace are Danes while immigrants account for 7% (Pakarinen, 2012). There is no bureaucracy and bribery in Denmark hence this offers a stable business environment. It has good ethical framework and inflation policies (The Local DK, 2014). The country is politically stable (Pakarinen, 2012). Therefore, because government initiatives and fast growing economy it becomes apparent that opening a business provides the best chance for companies such as BBVA retail banking to enjoy government support. Small and medium enterprises SMEs) are the main forms of business characteristics in Denmark. It is active in foreign trade and supports liberal trade policy. It has a mixed economy. It has a relatively high-income rate, Gross National Income (GNI) per capita stands at $61,110 and has a budget surplus (The Local, DK, 2014). Therefore, such stable nation with a fast-growing economy has a high potential for running a business. The Danish economy is one of the most prosperous and stable across the entire world with studies suggesting that by 2017 it will be worth $353.1 billion with a Compound Annual Growth Rate (CAGR) of 1.9%. The Foreign direct investments account for about 2.5% of the GDP (The Local, DK, 2014). The government policies protect financial institutions such as ensuring careful lending, minimizing the aftermath of financial crisis through increasing government spending, tax cut, infrastructure