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Norway Norway Is an MEDC Located in Northwestern Europe, on The Norway Norway is an MEDC located in northwestern Europe, on the Scandinavian Peninsula. The nation is ruled under a constitutional monarchy and the current head of state is King Harald V. Norway is ranked number one on the Human Development Index (HDI). This means that Norway is very highly developed in all areas of the HDI criteria. The HDI criteria are literacy rate, life expectancy at birth, number of deaths/ 1000 live births, GDP, inflation rate, level of economic freedom, and sanitation. Norway has a population of 4,676,305 people as of July 2010. The yearly population growth rate is 0.334%. The infant mortality rate is very low, at 3.55 deaths/1000 live births. The literacy rate is at 100% for both males and females. This means that everyone in the country can read and write. Access to healthcare and sanitation is also 100%. The GDP is US$58809.50. The prevalence of HIV/AIDS amongst the adult population is extremely low, at 0.1%. This means that out of Norway’s 4.6 million people, only 3000 are afflicted with the disease. There are fewer than 100 AIDS-related deaths every year. These factors give Norway the highest the highest rank on the HDI and contribute to its high standard of living. Norway’s economy has been booming since the end of the Second World War. Its economy is a free market economy although there is some government intervention in areas such as the petroleum market, which is Norway’s main export. Norway has an abundance of natural resources. These include petroleum, hydropower, fish, forests and minerals. Out of all these resources, Norway’s economy relies the most on petroleum. Petroleum was discovered along the Norwegian continental shelf in 1969. Since then, Norway has grown to become the world’s third-largest exporter of gas. Oil and gas exports make up 23% of Norway’s total GDP. The country saves majority of its revenue from gas in a sovereign wealth fund. A sovereign wealth fund is money that a country sets aside for investment purposes that will benefits its citizens. Because oil and gas provides large revenue for Norway, the government has more money to provide well for the country. As of 2008, the world’s top 5 importers of Norway’s oil were the United Kingdom, the Netherlands, France, Germany and Belgium. Due to a national referendum, Norway voted against joining the European Union (EU) in 1994. Norway did not want to be part of the EU for several reasons. First of all, Norway wanted to be an independent nation because it had already spent several years under foreign rule. Next, due to Norway’s location at the high north, it is in closer contact with Scandinavian countries than other European nations. However, Norway still has free trade with the countries within the EU. This is because of the European Economic Agreement (EEA). This agreement gives Norway the freedom of goods, persons, services and capital. Furthermore, it says that Norway has full access to the EU’s internal market. Norway is a member of the North Atlantic Treaty Organization (NATO). Through NATO, Norway supports international cooperation and peaceful settlement disputes. Norway pursues economic, social and cultural cooperation with other Nordic nations such as Denmark, Sweden, Finland and Iceland through the Nordic council. The sea plays a major role in Norway’s exports. It uses the sea to transport its raw materials to other places in the Nordic region such as Svalbard, the arctic region and the northern continental shelf of Norway. Also, Norway has the reputation of being the world’s leading shipping nation. The business sector of Norway’s economy does not rely much on labour. Most jobs are office jobs and are therefore very knowledge driven and there are many incentives to improve on the country’s industrial productivity and efficiency. Norway exports 40% of the goods and services it produces to other parts for the world. An example of these goods would be oil and fish. 1/3 of the country’s total GDP comes from exports. Norway’s main markets are in the Nordic regions, which includes Europe. Certain products such as gas, oil, minerals and seafood are exported worldwide. The average tariff is 0.4%. The cost of trade in Norway is increased by the restrictions that the government has on service markets, pharmaceutical and biotechnological policies, agriculture and manufacturing subsidies. Norway has a very high tax rate. However, it is the high taxes that make Norway number one on the HDI index. The tax allows the government to provide free education and healthcare to the population. Also, people are paid high salaries because of the amount of tax they have to pay. In recent years, the overall revenue as a percentage of Norway’s GDP was 43.3%. This means that the government makes a lot of money from taxes. The rate of inflation is 2.9%. The government of Norway controls the price for agriculture products, pharmaceuticals and influences these prices through state-owned enterprises and utilities. In conclusion, Norway is a prosperous country with an effective system of governing that has provided the population with a high standard of living. .
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