The role of Brazil in the modern international cooperation

Moscow Aviation Institute  
(National Research University) 
Engineering-Economic Institute

 

 

CHAIR 501 
 
Coursework on discipline

 

«Comparative analysis of Brazil and Norway to identify business opportunities in Russia»

 

 

 

 

 

 

 

 

Work done by students

Danilina L., Lazukina A.

Group 5O-210B

 

 

 

 

 

 

Оглавление

 

 

 

Introduction

1. The role of Brazil in the modern international cooperation

Brazil is the most economically developed country in Latin America. Brazil's economy is characterized by modern development of the agricultural and industrial production, the modern mining industry and massive the services sector. By its own production in the country is provided to 90 % of the domestic demand for manufactured goods. Demand on machinery and equipment is met by more than 80 %. A number of competitive Brazilian goods (aircraft, buses, cars, trucks, tractors, road-building machinery, power equipment, electrical and electronic equipment, etc.) are supplied to the world market. One of the specific features of the Brazilian economy in recent years is the rapid development of its world economic relations. Leading role plays foreign trade. Significant changes have occurred in the foreign trade, were related with a change in the development model of the Brazilian economy. Dynamics and structure of the Brazilian foreign trade in the 90s was largely determined by government policies aimed at liberalizing foreign trade (including the abolition of import licenses and the decrease in the average rate of customs duty is more than three times) and the acceleration of the integration process of MERCOSUR.

Brazil is a member of several international economic organizations. The country is a member of the WTO, MERCOSUR, UNASUR, G8 +5, G20 and the Cairns Group. In addition, Brazil is playing an active role in the BRICS and IBASE (India, Brazil and South Africa). 
Currently, according to the UN classification, Brazil is ranked among the "newly industrialized countries". In addition, it is also among the countries with "emerging" markets.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2. The level of foreign economic relations of Brazil with Russia

In recent years, Brazil has firmly holds the first place in Russia's trade with Latin America. Brazil is also among the major partners of Russia in the world. Brazil considers Russia more as a market for agricultural products. Brazil was the first country in Latin America, with which Russia established diplomatic relations, due to the fact that Brazil was then a monarchy.

 

Russia supplies to the Brazilian market for:

• fertilizers
• ethyl alcohol
• cars
• cameras
• other industrial goods.

 

The basis of Brazilian imports into our country are:

 

• agricultural and food products: coffee, sugar, cocoa beans and cocoa products
• shoes and others.

 

In the term structure of trade turnover is expected to increase the share of high technology products, including such industries as aerospace, nuclear power, metallurgy, telecommunications and other. 
Planned expansion of investment activity at the expense of participation of Russian companies in realization of projects of construction and modernization of hydropower, nuclear power plants, Railways, laying gas and product pipelines, reconstruction of sea ports and other Brazil is also interested in joint with Russia using spaceport in Alcantara on the North of the country to launch artificial satellites.

 

Russian-Brazilian trade is characterized by:

 

• growing positive balance in favor of Brazil.  
  Steadily increasing the volume of imports from Brazil: pork, beef, poultry meat, sugar. This led to an increase of accumulated negative for the Russian side, the balance of trade

 

• limited nomenclature of Russian supplies, bearing the raw-material orientation 
  The base of Russian exports to Brazil being fertilizers - more than 91 %, mineral products (coal and diesel fuel) - 4 %. It should be noted the low competitiveness of Russian goods on the Brazilian market, the needs of which can be ensured by developed-output linkages TNK international.

 

• dominated in the structure of Russian imports from Brazil of goods with a low degree of processing 
  Agricultural and food products (raw cane sugar, pork, poultry, beef, tobacco) continue to be the basis of our purchases in Brazil - their share is about 87%.

 

• growing negative for Russia's trade balance for the group of machine-technical products

 

• continued decline in the share of export of Russian machine-technical products

 

• high share of American and European intermediaries, including financial institutions when implementing the Russian export operations (delivery of fertilizers and mineral products).

3. International companies selected country on the Russian market

Activities of multinational companies in Brazil in the Russian Federation.

Current investment projects with the participation of the Brazilian capital on the territory of Russia are:

 

	Plant for the production of hamburgers «Marr Russia»	Plant on production of refrigerating equipment Metalfrio Solutions
Region	Moscow region, Odintsovsky district	Kaliningrad region, Bagrationovsky district, vill. Nivenskoe
Industry	Food production	Industrial equipment
Project stage	Built	Built
A brief description of the market	Supply of semi-finished products for the McDonald and Russia	Supply racks refrigerators and horizontal freezers for sales networks
Description of the project	processing capacity of 25 thousand tons of meat per year, 400 jobs created, estimated revenue of 40 million euros per year	Estimated revenue to $ 50 million. The USA in a year
Link (Web):	www.marr.ru	www.metalfrio.com.br

 

 

Marr Russia

 

MARR RUSSIA is one of the leaders in the supply of products for the catering market over 12 years. Today MARR not just a distributor, but also the largest manufacturer and supplier of meat products to restaurants. 
 
The range of more than 1800 names of various food products: meat and poultry, fish and seafood, groceries, dairy products and cheeses, various vegetable oils, fruit and vegetables, confectionery and bakery products, etc. 
 
The current enterprise quality control system provides constant control over the observance of all norms and standards related to food at all stages: acceptance, storage and shipment of products. 
 
Own motor-vehicle pool totals more than 80 vehicles equipped with temperature control systems. Deliveries are made to more than 3,500 customers in different cities of Russia and CIS countries. 
 
Company strives for mutually beneficial cooperation with our clients and understands how important it is for the professionals to receive useful information, to know more about the products and be sure in their quality. On the specially equipped kitchen MARR known chef from Europe, America and Russia hold regular master classes and presentations. And company’s specialists undergo continuous training to improve the quality of work. 
 
The company MARR regularly participates in charity events «Charitable Fund, Ronald McDonald», «Embassy of Italy in Russia, as well as in the organization of food packages for veterans and pensioners. 
The company is expanding and has branches in St. Petersburg, Rostov-on-don and Novosibirsk.

 

Metalfrio Solutions

 

Metalfrio Solutions operates in the plug-in commercial refrigeration market. Its leadership, production capacity, innovation, commitment and dependability have helped it build a strong partner relationship with customers for nearly fifty years.

 

It is a global company that combines expertise, technology and flexibility, always anticipating its customers and its customers’ customers’ needs. Metalfrio Solutions’ customers include the leading international and regional brands of beverages, ice cream, food and retail businesses all benefiting from the customized solutions that make a difference in displaying the most varied products at the point of sale.

 

Metalfrio Solutions comprises several commercial refrigeration brands – Metalfrio, Derby, Caravell and Klimasan – to meet its customers’ various needs and markets. With the most complete portfolio of commercial refrigeration products, Metalfrio Solutions is currently one of the largest refrigeration companies in the world and continues to grow as a result of a strong expansion program.

 

Metalfrio provides much more than just refrigeration products. It offers merchandising tools for the point of sale, as well as the best business strategy for its customers through the customization of complete solutions from product concept development to production, distribution and postsale services. By providing these solutions the Company has built a solid commitment to its customers by following their growth and meeting their needs worldwide.

 

With a production capacity of 1.5 million units per year, the company operates on nearly every continent, with 4 strategically located production facilities – Brazil, Mexico, Turkey and Russia. These locations produce state-of-the-art technology equipment with global distribution reaching more than 80 countries.

 

You can rely on Metalfrio Solutions to make a difference at the point of sale, showcasing your products and your brand with the best display always.

 

Production and distribution.

• Production capacity of 1.5 million units per year. 
• Strategic positioning - 4 production facilities located in Mexico, Turkey, Russia and Brazil 
• Global distribution capacity: 220 distributors in over 80 countries 
 
Reliability 
• Metalfrio Solutions has built a reputation for reliability for the past 50 years through constant research and development of cutting edge solutions 
• Its respect for the environment is a key issue: Metalfrio was the first company to have a fully eco-compliant production facility in Latin America 
 
Focus on the Client 
• Complete solutions: from product concept development to production, distribution and post-sale services 
• Deep understanding of market needs and the business of its customers 
• Delivery of fast and reliable solutions 
• Innovations result in customized products for each customer’s needs 
• Commitment to our customers: quality, timeliness and competitiveness

 
 
Leadership 
• Leader in the Latin American market 
• One of the world’s largest producers of plug-in commercial refrigerators 
• Global structure to assist customers with local growth strategies 
• Innovative products that combine technology, quality and reliability 
 
Products 
• Complete product portfolio: hundreds of models of upright, horizontal and custom-made equipment 
• The largest commercial refrigerator facility in operation in Latin America 
• Four different product brands with a collection of models to cover the most diverse client needs

 

Metalfrio Solutions is a global company, providing solutions that cater to the regional needs of its customers. All around the world, its expertise and tradition follows these customers in their expansion efforts, since the Company relies on an infrastructure that allows it to understand and meet each market’s needs, providing fully customized solutions. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4.  The role of Norway in the modern international cooperation

The economy of Norway is a developed mixed economy with heavy state-ownership in strategic areas of the economy. Although sensitive to global business cycles, the economy of Norway has shown robust growth since the start of the industrial era. Shipping has long been a support of Norway's export sector, but much of Norway's economic growth has been fueled by an abundance of natural resources, including petroleum exploration and production, hydroelectric power, and fisheries. Agriculture and traditional heavy manufacturing have suffered relative decline compared to services and oil-related industries, and the public sector is among the largest in the world as a percentage of the overall gross domestic product. The country has a very high standard of living compared with other European countries, and a strongly integrated welfare system. Norway's modern manufacturing and welfare system rely on a financial reserve produced by exploitation of natural resources, particularly North Sea oil.

 

The Norwegian economy is a prosperous mixed economy, with a vibrant private sector, a large state sector, and an extensive social safety net. The government controls key areas, such as the vital petroleum sector, through extensive regulation and large-scale state-majority-owned enterprises. The country is richly endowed with natural resources - petroleum, hydropower, fish, forests, and minerals - and is highly dependent on the petroleum sector, which accounts for the largest portion of export revenue and about 20% of government revenue. Norway is the world's third-largest natural gas exporter; and seventh largest oil exporter, making one of its largest offshore oil finds in 2011. Norway opted to stay out of the EU during a referendum in November 1994; nonetheless, as a member of the European Economic Area, it contributes sizably to the EU budget. In anticipation of eventual declines in oil and gas production, Norway saves state revenue from the petroleum sector in the world's second largest sovereign wealth fund, valued at over $700 billion in January 2013 and uses the fund''s return to help finance public expenses. After solid GDP growth in 2004-07, the economy slowed in 2008, and contracted in 2009, before returning to positive growth in 2010-12, however, the government budget is set to remain in surplus.

 

 

 

 

 

 

 

 

 

 

 

5.  The level of foreign economic relations between Norway and Russia

For Norway, the North-West region of Russia traditionally prominent place in bilateral cooperation on a wide range of areas. Most investment projects with Norwegian capital is concentrated in the Russian Northwest. A survey in late 2011 by the Norwegian company SIVA survey of 32 foreign companies (of which 22 - Norwegian), leading its activities in the Murmansk region , 45.2 % of respondents believe that the results of their business activities in the region in 2011 were much better than in 2010 . And only 29 % reported that their companies have reduced their activity.With regard to the investment attractiveness of the North- West region as a whole, 28.1 % of respondents believe that, compared to previous years the investment climate is improved, however, almost 60 % believe that there was no improvement . Despite a number of "traditional" Russian for problems such as corruption, etc. , the companies intend to maintain its position in the region.

 

Murmansk region

For the first nine months of 2011 from Norway to invested 17.8 million U.S. dollars, which is 9 times higher than the same period of 2010. In the structure of investments made in 2011, direct investment up 99 %. 11-13 November 2011 in the settlement Nickel Days took the Murmansk region of the Russian- Norwegian border cooperation , with the support of the Ministry of Regional Development of the Russian Federation and the Government of the Murmansk region. With financial support from the Norwegian Barents Secretariat in 2011 in the Murmansk region began the project : " Development Plan manufacture of products for the aviation industry ," the company JSC " BR Electronics " and " Customs Project , Phase 2 ", aimed at improving the efficiency of on point skip "Borisoglebsk - Storskog ." The Government of the Murmansk region to support these projects allocated from the regional budget subsidies in the amount of 500 000 rubles.

 

Arkhangelsk region 
During the first 9 months of 2011, the foreign trade turnover of the Arkhangelsk region and Norway amounted to 4.61 million ( 0.11 % of total turnover in the region ) . Of which exports to Norway - 0.02 million U.S. dollars , import - 4.59 million U.S. dollars. Most relevant areas of cooperation in the sphere of education and science include: development and implementation of international educational programs and research projects that contribute to the integration of regional universities in the Bologna process , the development of distance learning , expansion of student and teacher mobility , optimizing export of educational services , the development of information technology.Regular partners Arkhangelsk universities are: University of Tromsø , Bodø Regional University , the University of Stavanger , Institute of Public Health , Oslo University College Finnmark University College g.Harstada , Norwegian University of Science and Technology Trondheim , College g.Narvika etc. Among the successful projects of cooperation can be distinguished master's programs in the implementation of management training and engineers in the oil and gas industry , as well as experts in the field of environmental engineering , implemented within the framework of the Memorandum of Cooperation " Statoil " with the regional government .The development of partnerships in education promotes activity Norwegian- Pomeranian University Center Information Center and the Norwegian Barents Secretariat , created on the basis of PSU named . University, and contributing to the implementation of joint projects , organization of student internships in Norway, conducting courses in Norwegian language and summer language schools in Norway.

 

St. Petersburg 
Imports from Norway to St. Petersburg traditionally make up most of the supply of fishery products . Norway is a leading supplier of frozen fish on the St. Petersburg market share of these supplies in recent years, ranging from 70 to 90% of total imports from Norway. Promising areas of cooperation in St. Petersburg and Norway remain cooperation in shipbuilding and ship repair and other projects.

In May 1998, in St. Petersburg works Norwegian university center is a public institution , representing the University of Tromso, Trondheim , Bergen and Oslo. The main objective of the center is to strengthen scientific ties between Norway and Russia , to create conditions for Norwegian scientists and graduate students and the implementation of joint programs.

Established and developing contacts with St. Petersburg universities. The main partner of the center by the scientific institutions is Saint-Petersburg State University , conducted the most active cooperation with the Center for Russian language and culture , as well as eastern and philological faculties . In conjunction with the Consulate General of Norway Center spends evenings Norwegian culture , Norwegian students studying Russian language.

17 years successfully developing cooperation in the field of business education at Baltic State Technical University with the University of Bodø ( Nordland province ).

 

Leningrad region 
Over the past year mainly exported to the following products : pneumatic tires, of rubber , fuel wood , timber. In imports were products of these groups , " electrical machinery , equipment and parts ", " industrial equipment , its parts ." In 2011, in the framework of the agreement on the program selection of business partners of Norwegian and Russian companies signed in 2009 , continued to search for partners for Norwegian companies among the enterprises of the Leningrad region and St. Petersburg . The purpose of this project is to assist in the development of cooperation between enterprises of the two countries , assistance in output Norwegian and Russian companies on the Russian and Norwegian markets. At present, this work continues.

 

Republic of Karelia 
Norway is currently not included in the number of significant trade partners of the Republic of Karelia, its share in the foreign trade of the Republic does not exceed 1.5 %. During the first 9 months of 2011, exports to Norway increased by 16.2% and amounted to $ 12.9 million in export commodity nomenclature prevailed delivery of fish and seafood , their share was 82.6% , an increase of 19% . In previous years, played a significant role also exports such as ferrous and nonferrous metals, machinery , iron ore pellets .According Kareliastat , the republic among the organizations with foreign capital , producing goods and providing services , 1.4% or 2 companies with investors from Norway. Norwegian capital accumulated in the economy of the Republic of Karelia , directed from the country , less than 1% of total accumulated foreign capital of the republic. Cooperation between Karelia and Norway developed in several directions: As part of the Barents cooperation Karelia actively interacts with three Norwegian provinces - Troms , Finnmark and Nordland . Subject cooperation with Norwegian provinces within BEAR related to health, environment , the study of natural and cultural heritage , support for indigenous peoples. The main form of cooperation are traditionally small projects funded by the Norwegian Barents Secretariat ( Kirkenes ) . Petrozavodsk State University has extensive links with the University of Tromsø . In 2011, continued student exchanges with funding programs of the Ministry of Education of Norway , the Norwegian Barents Secretariat , the European student exchange programs . Under the chairmanship of Petrozavodsk State University is actively working within the framework of the Working Group on Higher Education and Research BEAR. Traditionally, active contacts between the organizations representing the interests of indigenous peoples. 26-27 September 2011 in Petrozavodsk , the regular meeting of the Working Group on Indigenous Populations of the Barents Region to discuss issues of cooperation in this field , as well as activities planned to take place in 2011-2012.

Vologda region 
The main products of mutual interest are the ferrous metals, it is on them annually accounts for more than 90% of exports and imports.Foreign trade operations in this area of the Vologda region carries Metallurgical Company "Severstal". In September 2010, "Severstal" has acquired 21.7 % stake in the Norwegian company Intex Resources ASA (mining) for U.S. $ 13 million.

Until the mid- 2000s, the region has actively cooperated with Norway in the forest industry , which is one of the leading consumers of Vologda timber , sawlogs, balances , log cabins saunas, MDF . Norwegian companies have invested in logging . The company " Telemark Wood Company" in 1993 established a branch in Vologda and acted as a mediator for a number of Russian enterprises in the export processing enterprises directly roundwood . The company also assisted in restoring the twinning between the town of Skien (Norway) and Belozersky district (Vologda region).

 

Trade mission and the Government of the Vologda region worked business presentations ( business mission) in the 1st half 2012 the delegation of the area. The main focus - on the industrial park "Sheksna" (deep metal processing , construction industry , production of automotive components ) and Industrial Park "Sokol" ( woodworking , construction industry , production of soft roofing materials , furniture and accessories).In 2011 trade mission organized and participated in the activities of the delegation visits Russian regions. From 23 to 29 October 2011 a delegation of Norway administrations gg.Sankt Petersburg and Kaliningrad . The trip was please agree . Several workshops on the theme " business and communal services of major cities" (Bergen , Oslo), organized a visit to " Centre for Climate Research" (Bergen) .

 

In the period 28-30 November 2011 in Oslo with the organizational support of the Norwegian- Russian Chamber of Commerce and Trade Mission delegation visited the Administration of Arkhangelsk and business representatives headed by the Chief of Investment Policy and Foreign Trade , Ministry of Economic Development of Arkhangelsk Region AA . Dunayev . The delegation included representatives of the fuel and energy , fishery , building complexes , transport, tourism , etc. Including JSC "Nordavia - regional airlines ", LLC " Armastan OLDI " LLC, " Sudoservice complex, " North Manufacture " , JSC" Arkhangelsk Trawl Fleet ", LLC" Niva ", LLC" Dial -North ", JSC" Savinskiy cement Plant ", JSC" Arkhangelsk Airport ", LLC" Club wildlife ", JSC" Arkhangelsk EW fleet ", LLC" sports complex " robin " Enterprise "Golubino" , Association of Oil and Gas Suppliers "Constellation".

 

December 12-14, 2011. with the organizational support of the Trade Mission visited ( business mission) delegation of the Republic of Sakha (Yakutia ), headed by the Minister of Transport and Roads of the Republic and the Minister of S.V.Vinokurovym Federal Relations and External Relations of the Republic of Norwegian V.I.Maksimovym for construction experience tunnels in extreme climatic conditions.

 

In accordance with the request made ​​by the representatives of the Trade Representation of Yakutia in a very short time visit was arranged and the delegation met with the experts of the Norwegian Geotechnical Institute , visit Oslofiordskogo tunnel and transport tunnel " Svea " Spitsbergen , negotiations with companies involved in the operation of tunnels, shipping company " Tschudi - Shipping ".

 

23-26 January 2012 with the organizational support of the Trade Mission visited in Stavanger and Oslo Sakhalin Oblast delegation headed by Minister of Investment and Foreign Affairs E.V.Kotovoy area . In accordance with the program of the visit held talks with a number of key organizations in Stavanger related to oil and gas sector , such as : Foundation ONS (Offshore Northern Seas), Association of Norwegian oil and gas companies for oil spills at sea, the International Research Institute (IRIS). Sakhalin Oblast delegation participated in the 10th Russian - Norwegian oil and gas conference "Development of oil and gas fields in the Arctic ", held in Oslo.

 

14-16 March 2012 with the organizational support of the Trade Mission paid a working visit to Norway Pskov Oblast delegation headed by First Deputy Governor of the Pskov region S.G.Pernikovym for the purpose of presentation of the region in Norway , as well as meetings and negotiations with potential partners establishment of bilateral trade and economic and investment ties.

 

The delegation of the Pskov region was adopted in Oslo Mayor F.Stangom , held talks in the Norwegian Union of Industrialists and Entrepreneurs , the Norwegian- Russian Chamber of Commerce , the state company " Innovation Norway ". During the meetings and negotiations were discussed possible cooperation projects with the Pskov region in both the industrial sector and the tourism industry in the area.

 

In the third quarter of 2013 Norwegian-Russian trade turnover amounted to 4.38 billion NOK. kroons, which is 19.1 % more compared to the same period last year ( Q2 . 2012 - 3.68 billion NOK . kroons) and by 10.4 % compared with the second quarter of this year ( Q2 . 2013 - 3.97 billion NOK . kroons). While imports from Norway was 47.2 % of turnover (in Q3. 2012 - 50.7 %) , Russian exports to Norway - 52.8% ( in Q3 . 2012 - 49.3 %). Compared with the second quarter of this year, the ratio of exports / imports in the Russian-Norwegian trade balance remained almost unchanged.

 

In the first 9 months of 2013 Norwegian-Russian trade turnover was lower by 12.7 % compared to the same period in 2012 ( up to 6 months in 2013 a decrease of turnover compared with the previous year was 23 %) , Russia's exports was lower by 18 3% ( up to 6 months - below 32% ), imports from Norway decreased by 5.7% ( up to 6 months - was down 12 %). Thus, if this trend continues, by the end 2013 figures Norwegian-Russian trade will not be lower than in 2012.

Russian exports in the period July - September 2013 increased by 27.4 % compared to the period July - September 2012 and amounted to NOK 2.3 billion. kronor, compared with the second quarter of this year grew by 11.0%. Imports from Norway in the period July - September 2013 increased by 11.1% compared to the period July - September 2012 and amounted to 2.07 billion NOK . kronor , compared with the second quarter of this year grew by 9.8%.

 

The main product groups of Russian exports to Norway were " Oil and oil products " - 29.2% ( 9M 2013 - 34.4% in the first 9 months of 2012 - 55.8% ) , and " Non-ferrous metals " ( primary aluminum ) - 28.3% ( in the first 9 months of 2013 - 25.3% in the first 9 months of 2012 - 17.4%) . The main product groups imported from Norway to Russia was " Fish, crustaceans , mollusks " - 71.5% ( 9M 2013 - 73.6 % , in the first 9 months of 2012 - 68.9 %).

The greatest impact on the growth rate of exports from Russia to Norway compared to the same period last year had an increase the value of exports by product group " Vegetable fat and oil , refined or fractionated " ( SITC code 42 , mainly rapeseed oil for the production of feed , and edible soybean oil) by 342 % - from 75.6 MNOK . EEK to 334.0 MNOK. crowns , as well as increasing the value of exports by product group " Non-ferrous metals " ( SITC code 68) 105% - from 320.3 MNOK . EEK to 655.5 MNOK kroons. However, the growth of Russian exports constrained by reduced supplies of goods group " Oil and oil products " ( SITC code 33) compared to the same period last year by 22% ( 3 m. 2012 - 862.2 million NOK . Kroons 3 m. 2013 - 674.1 million NOK. kroons). The total exports of Russian oil products in Norway for 9 months of 2013 are significantly different from that of 2012 mainly due to the absence in 2013 of deliveries to Norway natural gas condensate. However, Russia's exports to Norway under Article 27090001 «natural gas condensate» is episodic - in the last 10 years have been delivered in Norway carried out only in 2005 (83 million NOK . Cr.) , In 2006 (189 million NOK .Cr.), in 2011 (316 million NOK. cr.) and in 2012 ( NOK 1 billion . cr. ) , and therefore the product is not considered in -depth review of Russian oil sales to Norway.

6. Norway’s MNCs represented in Russia

Statoil ASA, (OSE: STL), is a Norwegian multinational oil and gas company headquartered in Stavanger, Norway. It is a fully integrated petroleum company with operations in thirty-six countries. By revenue, Statoil is ranked by Forbes Magazine (2013) as the world's eleventh largest oil and gas company and the twenty-sixth largest company, regardless of industry, by profit in the world.[3] The company has about 23,000 employees.

 

Statoil was formed by the 2007 merger of Statoil with the oil and gas division of Norsk Hydro.

 

As of 2013, the Government of Norway is the largest shareholder in Statoil with 67% of the shares, while the rest is public stock. The ownership interest is managed by the Norwegian Ministry of Petroleum and Energy. The company is headquartered and led from Stavanger, while most of their international operations are currently led from Fornebu.

 

Norsk Hydro ASA is a Norwegian aluminium and renewable energy company, headquartered in Oslo. Hydro is one of the largest aluminium companies worldwide. It has operations in some 50 countries around the world and is active on all continents. The Norwegian state holds a 34.3 percent ownership interest in the company, which employs approximately 13,000 people. Svein Richard Brandtzæg has been the CEO since 2009.

 

The company had a significant presence in the oil and gas industry until October 2007, when these operations were merged with rival Statoil to form Statoil Hydro (in 2009 changed to Statoil).

 

 

 

 

 

 

 

 

 

 

 

 

 

1. Comparative analysis of conditions of international business in selected countries.

 

Index level of globalization of the world (KOF Index of Globalization) was established in 2002 with the Swiss Economic Institute (KOF Swiss Economic Institute) with the participation of the Swiss Federal Institute of Technology (Swiss Federal Institute of Technology). Index is positioned as a composite indicator, which allows us to estimate the scale of integration of a country into the global community and to compare different countries for its components.

Norway has index 81.99 and gets the 20th place in the overall table of world’s indexes. Brazil has 59.21 level of globalization and gets the 76th place.

But each indicator consists of several other smaller indicators. So let’s look through the all indicators for both countries.

 

Indicators of quality of life of the population and development of the state (social globalization)

 

Human Development Index (HDI) – is a combined measure of the development of human rights in countries and regions of the world.  It’s calculated annually by experts of United Nations Development Programme (UNDP) in collaboration with a group of independent international experts use in their work, along with analytical developments, statistics of national institutions and international organizations. Used in the publication of a special series of reports on the UNDP Human Development.

 

Index level of life expectancy (Life Expectancy Index) – is a measure of the average life expectancy in the world. It’s one of the key indicators of social and demographic development.  It’s calculated by the United Nations Development Programme (UNDP) on the basis of statistical data from national institutions and international organizations, which are accumulated in the Population Division of the Department of Economic and Social Affairs. Life expectancy can be calculated separately for men and women, reflecting the gender characteristics of this phenomenon.

 

Population growth - is expressed as a percentage relative value, which is calculated as a measure of the total population increase (or decrease it - then this index has a negative value) during the calendar year due to natural increase and international migration. Natural increase – is the difference between the number of births and the number of deaths or the difference between births and deaths of the population.

 

Education index measures a country's achievements in terms of educational attainment of its population on two key indicators:

• Adult literacy index (2/3 weight).
• Index of total enrollment rates in primary, secondary and higher education (1/3 weight).

 

The Legatum Prosperity Index is compiled on the basis of various indicators 79, united in eight categories that reflect different aspects of society and social welfare settings.

 

The Happy Planet Index - is a composite indicator that measures the achievements of individual countries and regions in terms of their ability to provide its residents a happy life. It’s calculated by the method of the British research center New Economic Foundation in conjunction with the environmental organization Friends of the Earth, a humanitarian organization World Development Movement, and a group of independent international experts use in their work, along with analytical developments, statistics of national institutions and international organizations. It’s produced every two or three years.

 

Level of national health expenditure - is a relative value, which is calculated as the total public and private spending on health care during the calendar year, including government budgets at all levels, health insurance funds, foreign loans, grants and donations from international agencies and nongovernmental organizations. Health expenditure is expressed as a percentage of gross domestic product (GDP).

 

Level of national expenditure on education - is a relative value, which is calculated as the total public and private expenditure on education during the calendar year, including government budgets at all levels, private foundations, foreign loans, grants and donations from international agencies and nongovernmental organizations. The level of expenditure on education expressed as a percentage of gross domestic product (GDP).

 

The Environmental Performance Index - is a global research and accompanying ranks countries in terms of the load on the environment and natural resources.

 

Gender Parity Index (The Gender Equity Index) - a composite indicator that United Nations Development Programme (UNDP . It’s one of the key indicators of social development. It’s used to calculate the Human Development Index (Human Development Index) in a special series of UN reports on human development. The index measures a country's achievements in terms of the achieved level of gender equality in three key indicators:

• Reproductive health.
• Civil rights and opportunities.
• Opportunities in the labor market.

 

Infant mortality rate – is the number of deaths of children under one year per 1,000 live births. The infant mortality rate is one of the bases to assess the general level of socio-demographic development and accurately characterizes the social status of the population, the state of national health systems and for human life in general.

 

The World Giving Index is calculated using data from surveys of the urban population in the countries studied, and takes into account not only monetary donations, but also other forms of assistance to the needy. During the survey, respondents were asked to answer three questions:

• Do they donate the money to charity (last month)?
• Do they volunteer (last month)?
• Had they help a stranger who needed it (last month)?

 

The level of urbanization – is urban population in the total population. This rating refers to this figure as a percentage of the population of a country living in areas classified as urban according to the criteria used in this country.

 

Indicator of intentional homicides per capita is calculated as the number of homicides per year per 100,000 people and is one of the base to assess the general level of physical security of the population in a given country or region.

 

Global Age Wath Index - is a global research and accompanying ranks countries in terms of quality of life and well-being of the elderly.

 

 

 

Political development  indicators (political globalization).

 

Governance Matters (quality of public administration) – is a global research and accompanying ranks countries in terms of quality and efficiency of public administration. It’s  Calculated by the method of the World Bank (The World Bank) based on several hundred variables derived from different sources (national statistics institutes and international organizations, the results of research carried out on a regular basis by international and non-governmental organizations).

 

Democracy Index measures the level of democracy within the state and is based on the methodology of expert assessments and opinion polls of the respective countries, characterizing the state of 60 key indicators grouped into five main categories.

 

Failed States Index (Index of incapacity) – is a comprehensive measure of the ability (and inability) to the authorities to control the integrity of the territory, as well as demographic, political and economic situation in the country.

 

Sustainability Index Society (The Sustainable Society Index) - is a composite indicator that measures the achievements of the world and of the regions in terms of sustainability of social development. It’s calculated in accordance with the Fund's sustainable society (Sustainable Society Foundation) and issued every two years.

 

Global index of peace (Global Peace Index) – is a comprehensive index, which characterizes the peacefulness of the world, measuring the level of violence within the state and level of aggressiveness of his foreign policy. It shows which states can be considered as the safest (and vice versa - dangerous) to human life.

 

The Global Terrorism Index and the accompanying ranks countries according to the level of terrorism - is a comprehensive study that measures the level of terrorist activity in the world and shows which of the states and to what extent are faced with the threat of terrorism.

 

Freedom of the Press (Freedom of the press in the world) - is an annual survey and the accompanying rating on the state of press freedom in the world. It’s produced by the international NGO Freedom House, which assesses the degree of freedom of print, broadcast and online media in the world, since 1980.

 

The Corruption Perceptions Index – is a global research and accompanying ranks countries in terms of corruption in the public sector. It’s calculated in accordance with international non-governmental organization Transparency International, based on a combination of publicly available data and the results of a global survey. Within the index corruption is defined as any malpractice for personal gain.

 

Economic development indicators (economic globalization).

 

Gross Domestic Product (GDP) - is the total value of all final goods and services produced within a year in the territory of residents of a given country, expressed in the prices of final customers. In practice, this means that GDP include the results of all enterprises, organizations, institutions and other entities that operate in the economic territory of the country, including the enterprise, fully controlled by foreign capital, as well as branches of foreign companies.

 

Gross National Income (GNI) - is the total value of all goods and services produced during the year in the state (that is gross domestic product, GDP), plus income earned by citizens of the country from abroad, minus income, left the country by foreigners.  It’s one of the key indicators of economic development.

 

Index of Economic Freedom - is a combined index and the accompanying rating assessing the level of economic freedom in the world.

 

The Global Competitiveness Index - is a global research and accompanying ranks countries in terms of economic competitiveness.  National competitiveness – is the ability of the country and its institutions to ensure stable economic growth, which would be stable in the medium term.

 

Doing Business – is a global research and accompanying ranks countries in terms of the creation of a favorable business environment. It’s calculated in accordance with the World Bank (World Bank) and the International Finance Corporation (part of the World Bank Group), based on a combination of analysis of legal acts regulating business activity, and publicly available data on the regulation of business.

 

The International Property Right Index - is a composite indicator that measures the achievements of the world in terms of protection of property rights.

 

The Global Enabling Trade Index - a global research and accompanying ranks countries in terms of their involvement in international trade. It’s Issued every two years.

 

Energy consumption per capita - is the ratio of the electrical energy consumed in all areas of human activity over a certain period of time, usually a year, and population. This figure includes electricity generated by thermal, nuclear, geothermal and hydropower. To summarize all of these forms of energy, they are expressed in the universal unit of measurement - kilowatt-hours. Kilowatt- hour is the amount of energy produced or consumed by the device capacity of one kilowatt for one hour.

 

You can see the data for Brazil and Norway below.

 

Brazil’s Indexes

Indicator	Place	Index	Level of Index
Indicators of social development
Rating of human development	85	0.730	medium level
Rating life expectancy	85	73.8 (years)	high level
Rating of population growth	127	0.9	lower-middle level
Rating of education	102	0.66	lower-middle level
Rating prosperity	46	Economy 32 Entrepreneurship 49 Management 59 Education 77 Health 62 Security 82 Personal freedom 26 Social capital 69	medium level
Rating of happiness	21	52.932	medium level
Rating of health care costs	76	4.2	medium level
Rating of education costs	43	5.7	medium level
Rating of ecological efficiency	30	60.9	medium level
Gender equality rating	85	0.447	lower-middle level
Rating of infant mortality	86	13.9 (per 1000 births)	medium level
Rating of charity	91	26	lower-middle level
Rating of globalization	76	59.1	medium level
Rating of urbanization	21	86.9	medium level
Rating level intentional homicide	161	21	lower-middle level
Rating of the quality of life of older people	31	58.9	medium level
Indicators of political development
Rating of the quality of public administration		Consideration of the population’s opinion and public accountability 64 Political stability and absence of violence 46 Government effectiveness 55 Quality of legislation 56 The rule of law 55 Control of corruption 63	medium level
Rating democracy	44	7.12	medium level  (the lack of democracy)
Ranking of global disability	126	62.1	lower-middle level  (dangerous level of risks)
The rating of stability of the company	32	5.47	medium level
Rating of peaceful disposition	81	2.051	lower-middle level
Rating of terrorism	116	0	very high level
Press freedom index	91	46	medium level (partly free)
Rating of perceived corruption	72	42	lower-middle level
Indicators of economic development
Rating of gross domestic product	7	2 252 664 ($ million)	high level
Rating gross national income	66	11 630 ($)	an average level of income per capita
The rating of economic freedom	100	57.7	predominantly non-free economy
Ranking of global competitiveness	56	4.33	medium level
Rating of doing business	116	Registration of enterprises 123 Dealing with construction permits 130 The electricity connection 14 Registering property 107 Lending 109 Protecting investors 80 Taxation 159 International trade 124 Enforcing contracts 121 Liquidation of enterprises 135	lower-middle level
Rating of property rights protection	65	5.3	medium level
Rating of international trade	84	3.79	medium level
Rating of electricity consumption	70	2383.73 (kWh per person)	lower-middle level
Indicators of scientific and technological development
Rating of the knowledge economy	60	Index economy knowledge 5.6 Index knowledge 6.05	medium level
Innovation index	64	36.3	medium level
Rating of patent activity	10	22686 applications	high level
Rating research activity	15	12 306 articles	medium level
Rating of R & d expenditures	30	1.16	medium level
Indicators of information and communication development
Rating of the development of information and communication technologies	62	5.00	medium level
Rating of network readiness	60	3.97	medium level
Rating of the development of telephone communication	81	126 users (per 100 people)	medium level
Rating of the development of the Internet	75	45.0 users (per 100 people)	medium level
Rating of the development of e-government development	59	0.6167	medium level