Education System
Your browser does not support viewing this document. Click here to download the document.
Government Structure
Your browser does not support viewing this document. Click here to download the document.
Oil Consumption
According to the U.S. Energy Information Administration (EIA), Norway is Europe's largest oil producer and the 12th largest net exporter of oil in 2013. Additionally, Norway is the world's 3rd largest natural gas exporter behind only Russia and Qatar. In the year 2012, they were the 6th largest dry natural gas producers in the world. In the same year Norway's crude oil, natural gas, and pipeline transport services accounted for 52% of the country's export revenues, 23% of their gross domestic product and 30% of government revenues. All of Norway's oil reserves are located offshore on the Norwegian Continental Shelf (NCS). In 2011, an agreement between Russia and Norway defined their boundaries in the Barents and Arctic Seas. Within this agreement Norway was granted an additional 54,000 square miles of continental shelf. Additionally, both countries are to jointly develop oil and gas deposits that cross over the designated boundaries. This includes a maritime area of 109,360 square miles straddling the Barents and Arctic Seas. The discovery of oil in the 1960's had a major impact on the Norwegian economy. It has increased the standard of living for the vast majority residing in the country and has played a major role in shaping their society. The country's shift towards a free market based economy and industrialization has resulted in a population transfer from rural areas into cities and towns. One of the issues that the Norwegian government must now address is how to balance the exploitation of natural resources while also conserving the environment.
Which in turn raises the questions:
1.) With oil and natural gas being Norway's major export, what comprises the major imports for the country?
2.) With the country of Norway being a major oil producer, what safeguards have been put in place to protect the environment?
Which in turn raises the questions:
1.) With oil and natural gas being Norway's major export, what comprises the major imports for the country?
2.) With the country of Norway being a major oil producer, what safeguards have been put in place to protect the environment?
Economic System
- What will be produced with Norway’s resources?
Norway’s natural resources include petroleum, natural gas, iron ore, copper, lead, zinc, titanium, pyrites, nickel, fish, timber, and hydropower. Norway agriculturally produces barley, wheat, potatoes, pork, beef, veal, and milk.
- How will these goods be produced?
Norway uses many of its natural resources to produce various goods industrially. It’s industries include petroleum and gas, food processing, ship building, pulp and paper products, metals, chemicals, timber, mining, textiles, and fishing.
- Who will use these goods?
Some of Norway’s goods will be used within the country, particularly its agricultural goods. Others will be shipped to various other countries.
- Will these goods be exported?
Yes, many of Norway’s goods will be exported. Some of Norway’s export partners include the United Kingdom, Germany, Netherlands, France, Sweden, and the United States.
Write a brief summary of the economic system of the country: Identify and explain the type of economic system.
The economic system in Norway is a mixed economy. A mixed economy is an economic system in which both privately owned companies and the government or publicly owned companies play an important role.
Write a brief summary of the economic system of the country: Identify and explain the type of economic system.
The economic system in Norway is a mixed economy. A mixed economy is an economic system in which both privately owned companies and the government or publicly owned companies play an important role.
Select three key economic indicators such as poverty rates, labor distribution, use of resources, etc. and analyze what this information says about the country, how does it compare to other countries, change over time, etc.
Three key economic indicators include the unemployment rate, the inflation rate, and the industrial production growth rate. In Norway, the unemployment rate was 3.6% in 2013, a ranking of 28th compared to other countries around the world. The inflation rate in 2013 was estimated at 1.9%, a ranking of 36. The last indicator, the industrial production growth rate was a -3% in 2013, a ranking of 184. An unemployment rate between 3-5% can be an indicator of a healthy economy. A low rate indicates that there are fewer people looking for work, and more people within the labor force. More people within the labor force results in an increased amount of money spent out on the economy. It also can be indicator for how much money the government will need to spend in assistive programs for those out of work. A lower unemployment rate would equate to less money the government would need to spend. Norway's unemployment rate of 3.6% indicates a healthy economy. Another economic indicator is the inflation rate. The inflation rate reflects an increased cost of living. When an inflation rate sharply increases and the average consumer’s income cannot compensate, this will negatively affect the economy. However if an inflation rate is compensated with increased consumer income, this can lead to increased spending and investing within the economy. Norway's inflation rate of 1.9% in 2013, also indicates a healthy economy. The industrial growth rate, which includes manufacturing, mining and construction, can be an indicator of the health of an economy as well. A high industrial growth rate can indicate an increase in the demand for consumer goods. An increase in the demand for manufactured goods may result in the boost in employment rates. As the needs increase, companies may need to hire additional employees to meet these demands. Norway in 2013 saw a negative industrial growth rate of -3%. This lead to a ranking of 184 in the world. This indicator is not a particular positive one, and would need to be addressed.
Identify the GDP - per capita for the country.
Norway's GDP - per capita is $55,400 and is ranked 9th in comparison to other countries around the world.