A Report On The Swiss Confederation

1035 WordsMay 3, 20175 Pages
In 1291, the Swiss Confederation was founded. In 1499, the Swiss Confederation obtained independence from the Holy Roman Empire. Finally, in 1848, a constitution was created that replaced the confederation with a centralized federal government. Today, the Swiss Confederation is most commonly known as Switzerland, one of the world’s richest and most innovative countries (The World Factbook: SWITZERLAND). In efforts to determine whether our firm should pursue business engagements in Switzerland, I, Paula Cuerquis, Senior Macroeconomist at our multinational corporation, created a report that outlines the overall macroeconomic conditions of the country of interest. In this report, I will be providing an assessment of Switzerland’s current…show more content…
An example of this problematic dependence occurred in 2008 during the global financial crisis that resulted in the economic downturn in 2009. During this time, the demand for Swiss goods plummeted putting Switzerland into a recession. While the Swiss National Bank, SNC, implemented a zero-interest rate policy that rejuvenated the economy, the domino effect that occurred due to this economic downturn resulted in the strength of the Swiss franc but also weakened the competition for trade and weakened the economy’s growth outlook (The World Factbook: Switzerland). As you can see in the image to the right, as of 2015, 43.4% of Swiss exports are generated by the European Union (Switzerland - Country Profile). An important thing to note here is that the Swiss economy is open to foreign investment. According to Heritage.org, Switzerland ranks a score, out of 95.0, of 90.0 in regards to Trade Freedom, 85.0 in Investment Freedom, and an increasing 90.0 score in regards to Financial Freedom. Sitzerland’s capitalizes on their openness to trade with industrial products but with a protected agricultural sector (Switzerland). Forbes ranked Switzerland #16 as one of the best countries for business. Moving forward, like I touched upon earlier, with a population of 8.1 million people, it’s astonishing how only 4.6% of Switzerland’s labor force is unemployed. Switzerland averages wages of $58,389 (US dollar), employment rates of 81.3%

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