Denmark : A Economic And Social Factors Of The Country

1205 WordsMay 15, 20165 Pages
For a while now we have been searching for a country where we can build a manufacturing plant to produce our product. I was sent to Denmark to research and determine whether or not we should build our manufacturing plant in that country. Looking at the political economic and social factors of the country, I recommend that we do not build the plant in Denmark. Due to the issues Denmark has, it would not be the best idea to build the plant in this country. In social terms, Denmark is far from its socialist planned economy. Denmark is a market economy. It is a market economy with high taxes and an extensive welfare state. Denmark got rich under a taxation and spending regime not that different from the United States. Danish tax levels only took off starting in the mid 1960s and the country 's process of catching up to US wealth levels soon after coming to a halt. In other words, Denmark became rich first and then raised up its tax rates. Meaning Denmark will tax us a lot to where we will be losing lots of money from this point on if we end up building the plant in there country. Denmark still qualifies as a market economy today despite its high taxes and large welfare state for a number of important reasons. The only concern with or plan building the plant would be that the high tax rate will cost us more money, but if we were to go to a different country with lower taxes we would be able to higher value with lower taxation (Zero hedge). By focusing on the
Open Document