With a GDP of $494.3 billion (2016 est.) Switzerland ranks as the 40th largest economy in the world (CIA, 2017). For the standard of living of the average Swiss citizen the GDP per Capita gives a good measure: $59,400 (2016 est.) regarding a population of ca. 8.2 million (July 2016 est.) puts the country in the 16th place of the world (CIA, 2017). Therefore, Switzerland is an economically well developed country. Economic growth gives you insights about historic developments and provides valuable information to forecast future economic situation. The current real GDP three-year-growth-rates (2014-2016) are +1.9%, +0.8% and +1%. Comparing Switzerland to other countries in the world, shows a current ranking at #176 (CIA, 2017). This data demonstrates a slow but constantly positive growth. Within the Index of Economic Freedom provided by the Heritage Foundation, Switzerland is considered as a free economy by ranking number four in the world. Hong Kong, Singapore and New Zealand are the only countries giving more opportunities than Switzerland for pursuing a business freely and without strict restrictions. This results in the overall score of 81.5 out of 100 - with high consistency Page < 7 of 37 - ZOOM over the last couple of years and 0.5% improvement to last year. Amongst other criteria, Switzerland has strong property rights as well as great trade, investment and financial freedom; signaling their market openness. (Heritage Foundation, 2017) According to the World Bank the ease of doing business in Switzerland is above average with a ranking of 31 in the world and a score of 76.06%. Taking quality of transportation infrastructure into account, the World Bank Logistics Performance Index (LPI) ranking offers good insights about logistical situations in each country. Switzerland receives a LPI ranking of 11 out of 160 listed countries by having a score of 3.99. Relating to friendliness of customs, infrastructure, international shipments, logistics competence, tracking & tracing and timeliness Switzerland takes a good place within these dimensions. Switzerland can be seen as very transportation friendly. (World Bank, 2016) In international trading monetary aspects play an important role. Switzerlands local currency is the Swiss franc (CHF). Past average CHF per USD exchange rates have been 0.9627 for 2014, 0.9627 for 2015 and 0.9992 for 2016 (CIA, 2017). It demonstrates that USD and CHF are approximating as the value of the US-Dollar is increasing slightly. As a consequence the purchasing power of the CHF against the USD has increased about +3.8%, which will have a positive influence on US exports to Switzerland. Below you can find a chart showing currency fluctuation over the past 12 months: 1.030 1.010 ni 0.990 0.970 Page < 8 of 37 - ZOOM Figure 1: USD/CHF exchange rate for last 12 months 12h 1D 1W 1M 1Y 2Y 5Y 10Y 0.950 Mr Mai Jul Sep Nov Jan 17 3.3. Political situation Source: XE, 2017 Switzerland is one of the most democratic countries in the world. The people are considered the highest political authority and, on average, will cast their vote three or four times every year (Switzerland: The Federal Council, 2016). Each Swiss President can only have a term length of one year and is elected from the Federal Council on a rotating basis (BBC, 2017). There is no head of state and instead the Federal Council act collectively as this position (BBC, 2017). As a federalist state, the people are able to vote on an extensive range of issues in the confederation, the cantons or the communes (Switzerland: The Federal Council, 2016). Each level should not perform any task which could be performed by a lower level. As a diverse nation, this system successfully contributes to social cohesion (Switzerland: The Federal Council, 2016). Along with this, their small size and population, high literacy rate and vast use of media all play a Page < 9 of 37 - ZOOM Economy, 2017). Although they fell from 3rd place in 2014 and dropped 0.07 points, they still lead as political examples (The Global Economy, 2017). Switzerland is not a member of the EEA, EU or NATO (UK Foreign and Commonwealth Office, 2016). It does, however, have agreements with the EU which allows free trade and movement, by land or air, between EU countries and Switzerland (UK Foreign and Commonwealth Office, 2016). It also participates in the Partnership for Peace Program, the European Free Trade Association, the World Trade Organisation and joined the UN in 2002, where it has a non-permanent seat on the UN Security Council (UK Foreign and Commonwealth Office, 2016). Switzerland is ranked third on the Human Development Index by the United Nations Development Program (2015) with an index score of 0.93; in comparison the USA are ranked eighth with a score of 0.915. Switzerland has been a neutral country for over 200 years, which means it will not instigate any conflict unless for self-defence or internal security (BBC, 2017 & Pauchard, 2015). This has led Switzerland to becoming one of the most peaceful countries in the world today (Henderson, 2013). Despite holding some of the more liberal gun laws in Europe and ranking fourth worldwide as holding the most guns per capita, Switzerland has some of the lowest crime rates in the world and only an eighth of the number of homicides as the USA (Henderson, 2013). The Institute for Economics & Peace (2016) ranked Switzerland seventh with a score of 1.370 on the Global Peace Index. They are also ranked as the 5th least corrupt country with a score of 86 (Transparency International, 2017). The business Anti-Corruption Portal (2015) states that corruption does not affect or disrupt business in Switzerland. There are some issues with bribery in the private sector, however it is heavy criminalised and there are 2015 Page < 9 of 37 - ZOOM Anti-Corruption Portal (2015) states that corruption does not affect or disrupt business in Switzerland. There are some issues with bribery in the private sector, however it is heavy criminalised and there are large sanctions for bribery including gifts and hospitality (GAN Integrity Solutions, 2015). It is completely safe for businesses to deal with the Swiss police; they are honest and hold a high level of public trust (GAN Integrity Solutions, 2015). 9 Switzerland is also highly ranked in the world for freedom. They have an overall score of 96/100 and the highest possible score for each political rights, civil liberties and freedom rating (Freedom House, 2016). Freedom of speech is constitutionally guaranteed in Switzerland and is respected by the government (GAN Integrity Solutions, 2015).