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PEST(EL) Analysis of Finland and Chine

Paper Type: Free Essay Subject: Politics
Wordcount: 2772 words Published: 31st May 2017

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Finland is a parliamentary republic government with a multiparty political system based country lead by the head of state which is the president. Finland president hold a period of 6 years term with maximum two consecutive term elected by the Finnish. Both the Prime Minister and Deputy Prime Minister dominated by the president after the parliamentary elections. They are the head of government and having the executive power to the government including the EU issues.

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Women in Finland are treated fairly great. They represented 38% of the seats in the 200 members of parliament in the year of 2003. Besides, part of them holding important positions like foreign minister, speaker of parliament and so on. The most significant position of Finnish ladies ever hold is president in the year 2000 by Tarja Halonen and primes minister by Anneli Jaatteenmaki in March 2003.

Economic Factors

Finland is a highly industrialized country with GDP of $181.4billion in year 2009, over 40% from the GDP are from the contribution of exporting goods and services. The primary economy sector in Finland is service sector which contribute about 65.7% and followed by manufacturing sector in producing metals, chemicals, and so on.

Taxation system in Finland is very difference with the other countries. Finnish hold their own tax card to prevent the card holder from getting highly taxed by their government. Those people without tax card are taxed 60% from all the income they obtained.

The most significant industry in Finland is Nokia, which is one of the world largest and notable mobile phone producers. Due to the highly success of the development of Nokia in Finland, this enable Finnish have the opportunity to own mobile phone and also connect to the internet much earlier before this becomes common in the United Stated and other countries in the world.

Social Factors

Finland hold the population over 5.32 million inhabitants, a part from the whole populations, there is 2.7million of them are workforce and 2.5 million from them are employed. Public sector is the most popular sector the Finnish to contribute in. Major ethnics group in Finland include Finns, Swedes, Lapps, Sami, Roma, and Tatars, and majority of them roughly about 91% speak in Finnish. Besides, large numbers of them are believed in Lutheran.

In the education system of Finland, children who reach the age of 9 years old are compulsory for them to start school. The attendance and literacy rate in Finland are almost hundred percent. This is among the higher in the ranking of education index in the word. Free meals will be provided for students who study in primary and secondary schools. Besides, the government absorbs the tuition fees, which mean there are 0 tuition fees for their full time students.

Technological Factors

Staying ahead

Finland has long been recognized for the success of the work it has done to promote innovation and the results speak for themselves in many areas. Finland cannot afford to rest on its laurels.

This identified a number of shortcomings, most particularly in the area of business support and making it easier for small businesses and start-ups to access the support and incentives that already exist. Finland has international links that need to be strengthened in research, the university world, and business. Being able to tap into the dynamism of the globalization process going on around us more effectively is a challenge facing many other countries as well as Finland. Staying ahead of the competition is a must.

Greater sustainability

One of the fundamental trends under way and one highlighted by Tekes, the Finnish Funding Agency for Technology and Innovation is the growing emphasis on the need for greater sustainability and reducing unnecessary wastage of the world’s dwindling natural resources.

Addressing this challenge will call for a range of new innovations based on a much lower level of resource usage than we accept today, innovations that have a smaller footprint across the entire life cycle of products and services. The need for these types of innovations is perhaps most obvious in areas such as renewable energy, but ultimately it is also likely to be felt across all the products and services that people interact with in one way or another.

Clean technology

Finland has already made great strides in developing energy-efficient systems and technologies, and is committed to doing more in this area. The country is expected to be one of the fastest-growing renewable energy markets in Europe over the next five years, and wants to be one of the EU’s leading users of renewable energy per capita by 2020.

A number of initiatives are under way to promote the development of environmental technologies and services in Finland, including the Cleantech programme and the new Strategic Centre for Science, Technology and Innovation that has been created to focus on advanced R&D in the energy and environment sector, alongside the other five centres already in place.

Known as CLEEN, its research agenda will address issues such as carbon-neutral energy generation, distributed energy systems, sustainable fuels, smart grids, efficient energy use, resource-efficient production technologies and services, recycling, and waste management.

Legal Factors

Welfare State and Rule of Law form the Basis

Finland is a welfare state. The state and the municipality of residence have to guarantee everyone a worthwhile existence and offer equal opportunities for a balanced and active life. People also have to have sufficient knowledge of their rights and responsibilities. A system of legal safeguards guarantees that these rights are upheld. Societal stability, the quality of the judicial system, good governance and effective legal safeguards are important competitive factors in ever more global and integrated markets.

Strategic Action towards 2012 within Legal Policy

Increase the flexibility of legal proceedings.

Improve the equality of the citizens in legal safety cases.

Improve the efficiency of crime prevention and broad-based criminal policy.

Better support and compensation systems for crime victims.

Rapid enforcement of criminal responsibility.

Increase the prevention of disruptions of payment.

Improve the fairness and efficiency of the collection of claims.

Assess the up-to-datedness of family and inheritance legislation.

Strategic Action towards 2012 on Governmental Level

Strengthen structures supporting good law drafting.

More effective evaluation of the alternatives to and effects of legislation.

Support cooperation in order to create functional democracy.

Create opportunities and forms for civil participation.

Promote the enforcement of rights within the EU.

Stress the development of practical forms of cooperation for the prevention of international crime.

Emphasise clarity, transparency, good governance and the protection of fundamental rights in the activities of the EU.

Why do you think Finland tops the chart for overall ranking of the “Best Countries in The World”?

Finland education is ranked number 1 in the world. Finland has set education as a national priority and believes that future generations do not have prospects for a healthy lifestyle if the population is not well educated.

Finland quality of life is ranked number 4 in the world. The standard of living in Finland is better. The Finland citizen has lots of holidays so families can actually spend time together.

Finland economy dynamism is ranked number 8 in the world. Finland or the Republic of Finland has a mixed economy which is highly industrialized. The country located in the northern Europe has rich natural resources like gold, silver copper, timber and limestone. The country also has deposits of iron, lead, zinc, chromium and copper across the country. Service, which is the largest economic sector of the country, forms more than 67 percent of the total and the next sector, manufacturing accounts, for more than 30 percent of the economy of Finland.

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PESTEL Analysis for China

Political Factors

The primary system in China is socialist system. The Constitution is the fundamental law of the state and entitled with the highest legislative power. All other laws and regulations shall be consistent with it. It has been amended four times since its adoption and will be continuously optimized to better suit the changing environment. The National People’s Congress (NPC) is the China’s fundamental political system. It is composed of representatives from provinces, autonomous regions, direct municipalities and the military. Chinese Communist Party (CPC) is the ruling party with other eight political parties. The eight parties are parties participating in the discussion and management of state affairs in cooperation with the CPC instead of parties in opposition. This leads to relative stable politic in China.

A unique form of political risk occurs in China, and this is the constant battle between the country’s central government and the provincial and local governments over applicable law, and observance or non-observance of it. This makes companies operating in China hard to know exactly what the rules are.

Economic Factors

Since 1949, the Chinese government has adopted planned economy system for 30 years. Though this system contributed to the stable, planned developments of the China’s economy, it also limited the economy development and sapped its vitality. The China’s economic reforms began first in the rural areas in 1978 and shifted to the cities in 1984. The implementation of reform transforms China’s economy into a socialist market economy. China is the fastest growing major economy in the world, with an average growth rate of 10% for the past 30 years. China’s embrace of the World Trade Organization and foreign direct investment is unprecedented and contributes significantly to its growth success. China overtook Germany as the world’s biggest exporter of goods in 2009. Its booming investment and consumption are helping to rebalance the world economy although Beijing has refused to let the yuan rise against the dollar since the global financial crisis began in mid-2008.

However, there is numerous weaknesses challenge the economic growth of China. One of the most serious weaknesses is the conflict of interests between central government and local government. Local officials’ primary priority has been to promote themselves and their careers by pushing for high investment rates and output levels whereas central officials are more concerned with excessive investment, unsold inventories, and local policies’ risking nationwide price inflation. Besides, corruption is mainly a government phenomenon in China. Corruption especially affects government handling of a wide range of local problems such as economic reforms and the need to compensate losers in the process of modernization.

Social Factors

There are around 1.3 billion inhabitants in China. The Chinese government tries to control its population growth by strict family planning policy, with the goal of one child per family. However, the policy is conducted with exceptions in rural areas and for ethnic minorities. For religion, Buddhism is most widely practiced, with an estimated 100 million adherents. Traditional Taoism also is practiced. China is still an industrializing agrarian society and has a long way to go to attain an industrial society, so most of the people do not have access to the best of China’s recent improvements. Most modern Chinese young adults do not go to college, to which entrance is obtained by passing the Gaokao, a standardized test at the end of the year. In the year 2000, less than 50 percent of the population finished junior high, and less than 15 percent finished senior high or vocational school. In 2000, only 3.6 percent of the population went to college. Amongst high school and vocational school graduates, less than one tenth had the chance to go to college. There is one private car per 120 people. In China, people with associates’ degrees and above comprise less than 5% of the population.

Technological Factors

Cement industry of China has many technological advances compare to other countries. China cement industry focuses on energy-saving, consumption reduction, environmental protection, quality and productivity improvement, and clean and intensive production for sustainable development. China has developed 60 types of special cements with independent intellectual property rights such as high strength cement, silicate cement, and oil well cement. New suspension preheater (NSP) sintering system is the main processing equipment of a NSP cement production line. China has been developed advanced NSP technologies of 1000-5000 t/d sintering systems. The design of 10000t/d NSP sintering system has also been completed and three production lines are under construction. Electricity consumption of cement production largely depends on grinding process in normal circumstances. In China, the combined power consumption of NSP plants has decreased from 125kwh/t in the 1980s to 95kwh/t today in some modern plants, mainly due to the adoption of advanced technologies and equipments, such as advanced roller mill and high efficiency separator.

Environmental Factors

There are some current environmental issues in China. Poor land management and excessive industrialization on fragile grasslands is driving to desertification in China. Besides, the climate change is exacerbating the problems. Unrestrained development and industrialization throughout the country makes China particularly vulnerable to growing changes in the climate due to rapidly increasing levels of greenhouse gas emissions in the world’s atmosphere. Desertification is engulfing ecosystems with sand and reducing already scarce arable land and creates eco-refugees. China’s economy based mainly on heavy industry and coal for cheap energy emits high levels of greenhouse gases, ultimately accelerating global warming and climate change. To alleviate the short-term effects of climate change, China has started to use artificial precipitation and other experimental means. The Chinese government also has begun to adopt stricter energy conservation legislation and increase and international cooperation to combat threats that climate change may bring to China.

Legal Factors

The judiciary in China means law-enforcement activities conducted by the country’s judicial organs and organizations in handling prosecuted or non-prosecuted cases. Sources of law are as follow:

1982 Constitution of the People’s Republic of China

The Constitution of the PRC guarantees the basic rights and interests of citizens. China’s Constitution has been amended for four times since its adoption in 1982, most recently this year on March 14, 2004 when the National People’s Congress voted to include formal guarantees of human rights.

NPC Statutory Law and Other Legislative Enactments

China has intensified legislative action on enacting and revising laws and regulations in accordance with its having become in late 2001 a member of the World Trade Organization (WTO). Up to the end of 2003, around 440 laws and law-related decisions enacted by the NPC and its Standing Committee, more than 1,000 administrative regulations enacted by the State Council and 10,000 local ordinances had been formulated.

International Treaties

Though the 1982 Constitution does not specify the treatment of international law in relation to the laws of the PRC, in practice the legislative approach has been to automatically incorporate international law as part of PRC law. If, however, the PRC has made a reservation to a provision of a treaty, this aspect or provision of the treaty is not implemented in the law.

Case Law

In theory, each case stands as its own decision and will not bind another court. However, in practice lower people’s courts judges often attempt to follow the interpretations of the laws decided by the Supreme People’s Courts.


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