BACKGROUND
Denmark is a small country with a sound industrial economy. It has managed to
avoid the recessions experienced elsewhere in Europe, mainly by achieving high
levels of industrial exports.
In recent years, growth has been approximately 2.5% a year. Since 1990 Denmark
has maintained a substantial balance of payments. Politically stable, unemployment
declined drastically between 1993-1998.
The government's priorities are to maintain an advanced health and social security
system, through the reform of economic, taxation and labour market policies,
education and training. The national government is comprised of departments,
authorities and state-owned corporations in such as areas as defence, railways,
ferry lines and roads.
Denmark is a very stable and safe country to live in. Over the past years there
have been some industrial strikes - lasting only a short time. Denmark has excellent
and close relations with other Nordic countries, Germany and Great Britain.
Religion
Religion has not played an significant role in the business life of Denmark.
However, an influx of people from other cultures is having an impact on both
business and private life.
Population
Denmark's population is 5.2 million, of which 1.3 million live in Copenhagen.
Other large population centres are the cities of Århus, located on the
Jutland peninsula, and Odense, located on Funen.
Demographics
The demographics of Denmark show a growing and large number of pensioners, with
a corresponding reduction in the workforce needed to pay for old-age benefits.
The government is working on ways to address the financial aspects of this problem.
Denmark's Geography and Infrastructure
Denmark's size is 43.094 km2, encompassing approximately 500 islands and a 7,000
km coastline. Zealand is the largest island and the capital city Copenhagen
is situated on its East Coast.
The Danish government has initiated large infrastructure projects, including
the Great Belt Bridge opened in 1998 in a joint venture with Sweden, which is
building the Oresound Bridge. Together, these will connect Copenhagen and Malmø
(Sweden) by 2000. The latter also led to the building of a mini-metro, which
runs from the centre of Copenhagen to Copenhagen's International Airport which
is currently being expanded.
Possible future projects include the Femer Sound Bridge which would connect
Germany and Denmark across the Baltic Sea. If initiated, this project would
take approximately five years to complete.
Generally there is a well-developed transportation infrastructure in Denmark,
making it easy and convenient to travel around the country - by car, train,
ferry and airplane.
Travel time, for example, between Copenhagen - Århus is only 3 ½
hours by train and 4 hours by car and ferry. Overall flight time between major
cities within Denmark is under an hour. However, transport time to and from
airports, makes car and train very competitive. This will especially be true
after the completion of The Great Belt Bridge when it is anticipated that airtravel
within Denmark will reduce by 40%.
Sailing time between Denmark and Germany is only 45 min. (Rødby-Puttgarden)
and between Denmark and Sweden it is 20 min. (Helsingør-Helsingborg)
or 45 min (Copenhagen-Malmø).
Doing Business with the Danes
Danes are very independent, of farming and sea-going ancestry, and they are
natural traders. Most work for companies that are small by European standards
and they are expected, and are used, to making decisions and assuming responsibility.
Generally Danes have a positive attitude towards working life.
Danes are very direct and usually want to get straight to the point. Once you
have established a personal friendship with a Dane, you will soon be on a first-name
basis and you will have a loyal friend for life. Danes dress informally for
work, however some offices expect their staff to wear business attire.
The Danish labour market is well organised, both for employers and employees.
Most employers within different business sectors belong to one organisation
called Dansk Arbejdsgiverforening (DA). Most employees within different
sectors are members of Landsorganisationen (LO). Together these organisations
define working conditions and standards in Denmark. Annual negotiations take
place between both organisations.
Denmark is known for its shipping industry, high tech electronics (i.e B&O,
Danfoss, Grundfoss), food products (bacon) and fur industry. The Danish shipping
company A.P Møller/Maersk, which also owns Sealand Inc., is the largest
shipping company in the world.
Communications and information technology is widely used in Denmark and Danes
are quick to adopt and acknowledge the importance of technology in communications.
However they also place a high value on personal contact, especially at the
outset of business relationships. Access to, and use of, the World Wide Web
and E-mail is prevalent, while video conferencing is still in its infancy.
English is widely spoken and is the language used by most companies which operate
internationally. The exception is southern Jutland where the use of German is
prevalent as the language used in business.
Environment
In 1972 Denmark was the first country to create a Ministry for the Environment
and Danes are world leaders in environmental protection, with the highest per
capita spending on pollution and environmental control. The European Union's
Environment Agency is situated in Copenhagen.
Media
Residents of the Nordic countries read a lot and the daily newspapers enjoy
large circulations.
The leading newspaper (measured by paid circulation) is Jyllands Posten
(175,687), followed by Berlingske Tidende, with a circulation of 155.000.
Børsen - a daily business publication - has a circulation of 44.000
copies. A free daily newspaper -Erhvervs Bladet - is circulated to 107,000
companies.
Television plays an increasing role, even though commercial television was
not introduced till the beginning of the 1980's. Today, the penetration of cable
and satellite is approximately 66 per cent. The advertising of beer, spirits
and tobacco, and over the-counter drugs is not allowed on TV.
There are very strict regulations pertaining to all media, especially pertaining
to advertising aimed at children.
Domestically owned advertising agencies have established a number of agreements
for international co-operation. Most agencies are members of their own trade
association:
