3. Political: Republic with
constitution and parliamentary
form of government.
Population: 318,236
Language: Icelandic; a
GDP: $12 billion Nordic language. All
business is done in English.
Literacy Rate: 99.9%
Per Capita: $38,035
Business Environment: Low
tax structure, high education
levels and competitive costs
for skilled labor, land and
electricity. Accepting of
American consumer goods.
4. 13% of selling price
Exclusive selling rights
2 year contract
5. 8th Largest economy
Test Market: Easy to Enter
Close ties to U.S.
Synergistic effect of
American entertainment
7. 18% corporate tax rate and no local tax rate applied
No Net Worth taxes on Companies
Minimum RED TAPE
Income tax lowest in Europe and among the OECD
Tariff Free Market
EEA: Free Trade Zone
8. 300,000 Sales Volume
-210,000 Mark Up
90,000 Cost of Product
7,200 Shipping Costs
97,200 Cost of Production and Shipping
39,000 Consignment Rate (13%)
136,200 TOTAL
300,000 Sales Volume
-136,200 Total Cost
163,800 Profit for 1 and 2 years
10. Register with the Register of Enterprises: www.rsk.is
Time: application for a new company can be completed
in one day.
Incorporation fee for private limited company:
1,137 USD
Capital: minimum of $34,849 paid within 1 year of
registration
11. References
Central Intelligence Agency. (2011, July 7). World Fact Book.
Retrieved July 28, 2011, from
https://www.cia.gov/library/publications/the-world-
factbook/geos/ic.html
Hill, C. (2011). Global business today. Boston: McGraw
Hill/Irwin.
Iceland Trade Directory. (2011). Iceland Trade Directory.
Retrieved July 28, 2011, from
http://www.icelandexport.is/english/investing_in_iceland/busi
ness_guide_to_iceland/
Invest in Iceland and Promote Iceland. (2011, April). Doing
Business in Iceland. Retrieved July 28, 2011,
from Invest in Iceland: www.invest.is
U.S. Department of Commerce. (2011). Doing Business in
Iceland: 2011 Country Commercial Guide for
U.S. Companies. Retrieved July 19, 2011, from
www.export.gov/iceland
Hinweis der Redaktion
English and Danish are mandatory subjects in school. A stable democracy with an active consumer economy.Overall, Iceland was the United States’ 104th largest goods export market in 2010. U.S. goods exports to Iceland in 2010 were $325 million and of that $76 million were ‘special other’ low value shipments, such as, kitchenwares.
The Nordic region is a large and sophisticated marketplace and the eighth largest economy in the world. It is considered worldwide to be an excellent test market for new products and an easy-to-enter market for new-to-market companies.Marketing strategies will be very similar to those we already use in the United states. Nordic countries have close ties to the United States culturally and historically. American consumer products are popular in Iceland. There are numerous examples of U.S. products that have a higher market penetration per capita in Iceland than anywhere else in Europe. Especially the U.S. entertainment products and exposure to American entertainment products appears to have a synergistic effect on sales of other U.S. goods and services.