Comparison Of Kenya And Sweden For International Opertions
International operations are determined by several factors which affects the international operations of a business productivity and profitability. Some of the factors may be internal while others are external ones. Sweden is one of the countries which operate its business operations under the policies of the European unions as one of the members. Kenya is a state in African continent, and none member of the Europeans union. However, it works under the union of east Africa free trade.
This means that the trade policy tariff rate for Sweden is fair for goods regulated under the EU policies but the income tariff rates remains very high for goods which are non- restricted to EU policies. This is because the country put 60 % tax incomes in addition to other taxes like VAT and capital gains tax. The Sweden economy is 70. 4 percent. This reflects Improvement in trade freedom and financial freedom. Like any other European n union member countries, Sweden has high level of investment freedom; financial freedom and business freedom than it is in Kenya.
This clearly indicated by the fact that foreign investments are permitted without the necessity of government approval. Starting a business in Sweden takes an average of fifteen days which is a bit shorter period as compared to the Kenyan duration which may take a minimum of forty three days. (Hymer, 1990) The Sweden’s unit of money is the Swedish krona while the Kenyan currency unit is shilling. The two countries have various denominations of the money values.
Kenya has the lowest as cents while the krona is the lowest for the Sweden. These may appear in notes of 5, 10, 20, 50, 100, 200, 500, and 1000 note shillings in the Kenyan state. In the Sweden country, certain denominations which appear in the Kenyan denominations are omitted. The 50 ore coin is the smallest while the 1kr, 2kr, 5kr, and 10kr are the other denominations with the 2kr being rarely used. The krona banknotes are also issued in five denominations of 20, 50, 100, 500, and 1000kr.
The Swedish krona is one of the prevailing currencies in the Europe. Other currencies have been replaced by euro. It is the eighth most traded currencies in the world thus more in use than the shilling of Kenya. (Eitman, 2004) Kenya has a higher population composed of different ethnic groups which are in most time friendly to each other. It is also composed of many other people of different races as well as from different country backgrounds.
However, there are some difficulties in trade cultural activities which are widely related to the practices of corruption within business operations. This has created a lot economic deterioration in the country leading to high level poverty and unemployment. In contrast from the cultural practices of the Swiss people, the corruption level in the country is almost unnoticeable as people are more transparent. There are comprehensive laws on corruption which are fully implemented hence enabling Sweden to be rank sixth on transparency.
However, Sweden has high taxation rates more than the Kenyan ones and at the same time it has inflexible employment regulations which hinder general productivity growth while this does not apply and cost much in Kenya. . (Hymer, 1990) From the above observation, installing the facility in Sweden will take be of advantageous than in Kenya. Where the culture of corruption is high, there is high risk of investment. In addition, the operations in the Kenyan institutions seem to be slow in processing their documentation which may be due to bureaucracy within the institutions delegated with the work responsibility.
This is likely to cause delays in matters concerning delivering your products as imports and exports at their port. The fact that the Sweden currency krona is widely in used by many countries is good reason for establishing the facility in Sweden for this factor will facilitate less need of conversion of the your currency in different states. ( Hymer, 1990).
Eitman, P. (2004): Business finance for the multinational corporation. Hymer, S. (1990): The International Operations of National Firms: CambridgeSample Essay of UkEssays