Introduction

We could never choose the place we born but we could always dream the place we live which a place that we all are aspire to. As the reason, “Newsweek” a second largest news weekly magazine in America has study a special issue for the purpose of the best countries in the world to fulfill the need of the world audience (Wikipedia, 2010). Therefore, where is the place that people are aspiring to? The answer is base on a country that provide many factors to ensure the national well being which people are healthy, educated, have a high quality living condition, nation are enjoy the economic competitive and also a stable political environment. All these 5 categories are the measurable of the best country of the world that set out by the Newsweek magazine and also had been study across 100 nations in the world. So, it means that it was an applicable data that represent all to conclude one country as the place that every people are looking for and every nation should be learning for.

P.E.S.T.E.L Analysis —- Finland

By using PESTEL analysis, we will able to realized and find out the opportunity and threat lie in the Finland. PESTEL is a useful and orientation tool for us to enlarge the “big picture” of the environment in Finland. Therefore, we are able to understand the sustainability, potential and prospect, risk and threats, challenges of Finland.

Political Factor

Finland is a parliamentary republic country and conducts a semi-presidential parliamentary system. Every resident has their right to vote in municipal election and in the European Union election. Finland has a central government based in Helsinki. Besides that, it has local governments locate in 342 municipalities.

Finland’s president Martti Ahtisaari was awarded the Nobel Peace Prize in 2008. It had proved that Finland is a cooperative model state. The award is strengthening Finland’s image and reputation of their stability political system. Moreover, it has builds a strong confidence to all the foreign investors and motivate them to invest in Finland. The award will bring long run profitability to Finland as well.

Political risk comprises the stability of the government and stability, the effectiveness if the government economy policies, the efficiency of the government bureaucracy and appropriateness, the effectiveness international relationship, and the reliability and integrity of legal system.

In a research conduct by A.M. Best Company (2009), it had show that the political risk in Finland is very low. There is because The European Central Bank had cut down the interest rates to Finland. The purpose of this action is to spur the economy activities and raise the demand in Finland. Besides that, the Finnish government is conducting fiscal policy in same time. By this way, Finland will able to afford this level of economy stimulus and avoid of large deficits. This is very important for a country to lower down their political risk. This is because an inefficiencies government, inadequate legal system, societal tensions or international tensions will cause adversely developments for a country.

Economic Factor

Helsinki is the central government in Finland and almost one million of Finns live at there. Moreover, a third of the country’s GDP is produced from there.

Economic risk can be assess by evaluate the weaknesses in a country’s economy. The domestic economic, government finances, international transaction, prospects for growth and stability of the country might affect the development of the country’s economy.

Finland’s economy is primary supported by manufacturing field including woods, metal and electronics. Another main economy activity to support Finland economy is Export. Finland has own high technologies knowledge and produces a lot of high-tech products, especially mobile phones. It is one of the main high-tech products producers in the world as well.

Most of the Europe is experiencing economy contraction. Since the global economy has slow down, the occurrence of negative performance of Finland in the economy fields was affected by this as well. The demand of Finnish exports have decline and loss of profitability has affect many of local business and also foreign investors. Most of the economists have expected that the current recession is considered to be long and sharp. The economy of Finland is expect to be continuing contract and might not return until 2011. However, the economic risk of Finland is still low while comparing with other developed countries.

Social Factor

The social security of Finland is well known in the world. All of their residents are guarantee with decent living condition. Finland had one of the world’s most extensive welfare systems for all of their residents in the late of 1980s. However, the social security had been cut back nowadays. It still consider as the most comprehensive social security in the world.

In the other hand, the health care system provides by Finnish government is one of the most decentralized and highest level in the world. It is quite closest to all other Nordic countries and UK. The health care system covers the whole country’s population. In additional, the health care service are mainly provided by government and the public sector and all the financed through general taxation. The municipalities will take the responsibility for arranging and taking all the financial responsibility for whole range of “municipal health services”. Therefore, all the residents in Finland no need worry about their financial problem for their health services.