Norway has no foreign trade zones and does not plan to
establish any.[1]
While Norway has trade agreements with many countries and supports many
American companies, it is more focused on the financial well-being of their own
company and corporations. By doing this,
Norway is trying to limit the amount of foreign goods that are brought into the
country.
The government collects the revenue from these items. This may have a lot to do with the wealth
that Norway has as a country. They have
continually shown progressive actions to protect their country and its
population. Looks like they will
continue to offer these benefits for the foreseeable future.
[1]
U.S. Department of State, Diplomacy in Action. Bureau of Economic, Energy and Business Affairs. 2011 Investment Climate Statement – Norway.
March 2011. www.state.gov/e/eb/rls/othr/ics/2011/157338.htm
I have to understand why Norway would have foreign trade zones such that are duty-free areas designed to facilitate trade by reducing the effect of customs restrictions. Norway is the 34th largest export economy in the world. The top exports of Norway are petroleum gas, crude petroleum, refined petroleum, non-fillet fresh fish and raw aluminum. Norway’s top imports are special purpose ships, cars, refined petroleum, passenger ships, cargo ships and computers.
ReplyDeleteThe top export destinations of Norway are Germany, United Kingdom, Netherlands, Sweden and France. The top import origins are Sweden, Germany, China, South Korea, and the United Kingdom. It appears that their foreign trade zones are promoting top trade.
http://atlas.media.mit.edu/en/profile/country/nor/
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ReplyDeleteIt sounds like mercantilism by textbook definition. Limiting import and maximizing exports. I think that Norway is protecting itself albeit conservatively, because it has limited exportable goods. It is abundant in natural resources and they stay competitive in the market, but not a lot of other exports.-Sacha B
ReplyDeleteYou are right, Sacha, and Norway is a wealthy country supported by these resources. Much of the money has been put into huge pension funds that are intended to serve as a sort of hedge in the event the oil market depreciates. Hydroelectricity (even heavy water) have been sources of income. But Norway is thinking more and more in terms of innovation and start ups to diversify its economy.
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