Exporting to Norway

Exporting to Norway

Norway is an attractive export market for European businesses, as Norway’s economy is strong and stable, and Norwegians have high purchasing power. The success of Norway’s economy is built on the oil industry, maritime trade and shipbuilding, fishing and fish farming, and timber production and processing. Norway’s economic growth has remained steady for decades. The salaries and standard of living of Norwegians are high, which makes it a sound choice to export products produced in other countries to Norway, where they can potentially be sold at significantly higher prices. To read more about Norwegian economic relations, visit the website of Norway exports.

The demographic factors of the export market

• What is the demographic makeup of the population?

For example, the Norwegian population consists of approximately 5 million Norwegians plus more than 600,000 immigrants, whose numbers are steadily increasing.

• What is the population density and distribution?

Around 80% of the Norwegian population live in cities.

• What are the geographical peculiarities?

Geographic peculiarities include the climate, weather, landscape and ecosystems. The Norwegian climate is similar to ours, except slightly colder. Daylight periods during the winter are short in Norway, while dark periods are long.

Economic factors of the export market

To assess the economic forces in the target market, answer the following questions:

• What characterises the export market?

The Norwegian market is characterised by stability, growth and progressiveness.

• What is the state of the financial performance of the export market?

Norway’s financial performance continues to be stable. In recent years, Norway’s economic growth has constantly remained above 1%. For a country as wealthy as Norway, this is a sure sign of stability. Norway’s financial reserves are extensive, exceeding the country’s GDP.

• What is the outlook for economic climate and growth?

Norway’s economic climate is favourable to innovative products, individualised services and high-quality goods. In the coming years, the market in these sectors is almost certain to grow, and any market turbulence can only be caused by the transition from oil to renewable energy sources.

The social and cultural factors of the export market

To assess the socio-cultural forces in the export market, consider the following questions.

• What are the norms and values ​​of the export market?

The Norwegian market is dominated by European liberal values. The Norwegians respect human rights, treat everyone equally, care about the environment and contribute to communal development as much as possible.

• What are the business culture and communication norms of the export market?

Norwegian business culture is familiar and understandable to most people. Being late for business meetings is considered rude, clothing should be modest and consultative sales yield the best results.

• What is the lifestyle of the people in the target market?

Norwegian society is highly developed. Innovations are encouraged and developed wherever possible, workdays end early, and citizens generally have hobbies, work at self-improvement and travel regularly. The work-life balance is thus important in Norway.

The technological factors of the export market

To assess the technological forces in the export market, consider the following questions.

• What is the level of technological know-how of the export market in the sector in which you are interested?

The Norwegian market is technologically highly developed. Before entering the market, make sure you are up to date with the latest technological innovations in your sector.

• What innovative products are already in use in the export market?

There are many start-ups in Norway, and Norwegians are quick to adopt any innovative solutions. For example, Norwegians are already using robots, electric cars, smart home systems and many other innovative technological products.

• Which technological problems in the export market are yet to be solved?

It is worth considering the technological challenges of your sector, because no new solution to a problem plaguing the Norwegians will go unnoticed.

The environmental factors of the export market

To assess the environmental forces in the export market, consider the following questions.

• What are the mineral resources of the export market?

Norway’s mineral resources include oil and gas. It is, in fact, partly this factor to which Norway owes the strength of its economy. At the same time, however, the Norwegian oil and gas industry is under threat of disruption by the global transition to renewable energy sources.

• What are the primary energy sources of the export market?

Norway’s principal source of energy is water. Hydroelectric power plants generate a significant proportion of the country’s electric power. Norway also generates power from ocean tides.

• Are waste management and recycling important in the export market?

Norway is a world leader in recycling and waste management. In addition to owning the most efficient recycling plant on the planet, Norway is constantly looking for new ways to generate energy from waste.

The political factors of the export market

To assess the political forces in the export market, consider the following questions:

• What is the legal framework in the export market?

Carefully examine the laws and regulations affecting your industry in the export market. You can find Norwegian laws and regulations governing your industry here.

• What is the tax system of the export market?

The Norwegian tax system is similar to that of other European countries. In Norway, VAT is 25% for regular goods and services, 15% for foodstuffs, 8% for cinema tickets, passenger transport and hotel rooms, and 11.11% for raw fish. Income is taxed at 24%, except for people living in Finnmark and Nord-Troms, where the rate is 20.5%.

• What is the current political climate of the export market?

Norway is a monarchy. Executive power is exercised by the Cabinet, which is led by the Prime Minister. Legislative power belongs to both the government and the Storting (Parliament), which is composed of representatives from different political parties. Currently, the social-democratic Labour Party (Arbeiderpartiet) holds the most seats in Parliament.