EFTA

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EFTA

• Intergovernmental organization set up for the
  promotion of free trade and economic integration
  to the benefit of its four Member States. The
  EFTA manages the EFTA Convention, that helps
  promote close trade relations with the EU and
  third party countries, (Mexico, Canada, Chile,
  Egypt, etc).

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Members of the EFTA, The European Free Trade
Association

• Iceland
• Liechtenstein
• Norway
• Switzerland

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Characteristics of Member Countries

• Iceland Population - 312,872
• Economic development stage high
  income
• Economic freedom index 76.5
• Switzerland Population 7,591,400
• Economic development
  stage high income
• Economic freedom index
  79.7
• Norway Population 4,721,914
• Economic development stage
  high income
• Economic freedom index 69

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HISTORY1960 Outer Seven
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• European Economic Area (EEA)
• - 3/4 Join
• Four Freedoms

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Role of EFTA

• Members of EU
• Pros Cons
• EUs Trading Partner
• 10th Largest in Goods
• 5th Largest in Services

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Mechanism of Cooperation

• Internally
• Switzerland
• Liechtenstein
• Iceland
• Norway

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• Externally
• Very open to trade.
• Free Trade Agreement (FTA)
• Joint Declaration of Cooperation
• First step to FTA

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Switzerland

• Geo and Demographic Characteristics- Population
  7.4 million- Language(s) German, French-
  Family styles 1 to 2 children, later marriages-
  Religion Roman Catholic (41.8), Protestant
  (35.3)- Climate Varies greatly from region to
  region- Value Greatly Education

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Geo and Demographic Characteristics

• Economy is based on a highly qualified labor
  force performing highly skilled work.Main areas
  include- Microtechnology- Hitech-
  Biotechnology- Pharmaceuticals- Banking-
  Insurance

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Economic and Developmental Status

• GDP (2007) 478 bilionGNP (2007) 139
  billionPer Capita Income (2007) 63, 198WB
  Visa Waiver issued to temporary visitors who plan
  on being in country no more than 90 days, for
  business purposes rather than study or
  employment.

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Economic and Developmental Status

• Economic Freedom Index (www.heritage.org)Busines
  s Freedom 83.9Trade Freedom      
  87.2Fiscal Freedom       68.0Government Size
    61.6Monetary Freedom 83.6Investment
  Freedom 70.0Financial Freedom    
  80.0Property Rights         90.0Freedom from
  Corruption 91.0Labor Freedom              
  82.0- Overall 79.7 free- World's 9th
  freest economy.

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Financial Status

• Currency- The Swiss Franc (CHF) is the currency
  of Switzerland- 1 (USD)    1.0445 (CHF)-
  Member of Financial Stability Forum (FSF),
  January 2007- Big Mac Index 1 Big Mac 6.30
  (CHF) 5.20 (USD)

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Culture

• Hofstedes Cultural
• Dimensions
• High Masculinity
• High Individualism
• Low Power Distance
• Low Uncertainty Avoidance

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Social Institutes

• Family
• Education
• Religion
• Government
• Business

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Religion

• Roman Catholic
• Protestant
• Muslim

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Political System

• Executive Branch
• Chief of State
• Head of Government
• Cabinet
• Legislative Branch
• Bicameral Federal Assembly
• Judicial Branch
• Federal Supreme Court

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Legal System

• Civil Law
• ICJ