Project title: How does globalisation development affect on the role of the Finnish state as a promoter of the interest of Finnish companies in international trade? Project seminar

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Project title:

How does globalisation development affect on the role of the Finnish state as a promoter of the interest of Finnish companies in international trade?

Project seminar

Internship project

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Saarto Essi, 50556

Internship project

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Annemarie Peen Rodt

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39 634

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36 000-48 000

State's role in the globalised economy: How does globalisation development affect on the role of the Finnish state as a promoter of the interest of Finnish companies in international trade?

Internship project, Spring 2014

Essi Saarto, 50556 Department of society and globalisation (ISG)
Roskilde University

1. Introduction 3

2. Different approaches to globalisation and key concepts 5

2.1. Liberalism and neoliberalism in globalisation theory 8

3. Observations from the report Internationalisation and barriers to trade in 2013 10

3.1. What kind challengers are the companies facing? 11

3.2. What kind of support the companies desire from the public sector? 12

4. Conclusions 16

5. Literature 18

1. Introduction

This study is an internship project written for Roskilde University in winter 2014. I did my internship in the Finnish Ministry of Employment and the Economy in Helsinki from June 2013 to September 2013. My tasks included assisting with the new project management system the Ministry was taking to use, preparing Power Point presentations, writing a guidebook and summaries of project management within the Ministry. I participated in several meetings and observed state institution as a working environment. As my working tasks were related to project management in the Ministry, I accessed and got to know a great variety of activities, projects and functions the Ministry was involved in.

The Ministry of Employment and the Economy, together with several other Finnish public institutions, have formed a network concept, Team Finland which purpose is to promote Finland's external economic relations, the internationalization of Finnish companies and foster the country brand globally. This internship project is based on a report conducted by the Team Finland network, Internationalisation and barriers to trade in 2013. I was advised by a colleague at the Ministry to study this fresh report and reflect in my project, what kind of expectations are allocated towards states and what kind of support is needed in the today’s global economy. This new report is the first of its kind. Earlier, the experiences of Finnish companies have been surveyed only regarding obstacles to trade, the previous time in 2009. As the survey and report used in this study are relatively new, critical reviews have not yet been written of it.
The research question in this project is: How does globalisation development affect on the role of the Finnish state as a promoter of the interest of Finnish companies in international trade? The aim is to study responses and actions a small, developed Western state has taken in order to stay up to date with the wider changes that are occurring globally in the context of economy and what kind of interest does the state have in global economy. The wider concept behind the topic is public sector's different 'coping strategies' in globalisation. The extended discussion in this project is about different demands and expectations globalised economy raises towards state institutions and how does the public respond to these calls. The report used as the material in this project is a case of this debate.
For global studies this project has significance since generally it can be claimed that globalisation affects pivotally on nation states power structures: it changes the space where and how power is used. The developments within global economy and international trade can be claimed to be the one of the key aspects in globalisation to weaken the nation states influence and power.
Traditionally states have encountered internal and regional challenges. Globalisation fades away the importance of geographical distance in international trade and also threatens to break the basis for political power. It has become necessary to distribute power to supranational organisations where states cooperate together. This is also seen in the report as the state alone is resourceless to solve problems and challenges Finnish companies face in global economy. The common nominator of the theoretical framework of this study is 'beyond the nation state' and how the developments and theories related to this nominator, globalisation, transnationalism and neoliberalism, are affecting and changing state's role.

2. Different approaches to globalisation and key concepts

Globalisation is one of the key concepts of the twenty-first century (Robinson 2008, pp. 126). The model of globalisation states that the world is becoming or has become an arena where individuals, practices and institutions are shifting globally and at the same time borders of nation states as a hindrance to this mobility have become less significant. Globalisation allows goods, people, capital, resources and ideas move freely between states. (O'Bryne & al. 2011, pp. 33). Globalisation can be defined as a process where relatively distinct areas are increasingly interconnected to each other in one imaginary “space” where the borders and limits caused by this space and distance are becoming negligible. (Hall 2003, pp. 102.). The speed of social transformation and change has become drastically faster in the latter decades of the twentieth century. This social transformation is connected to the increased connectivity among peoples and countries worldwide. The economic, social, political, cultural and ideological effects of globalisation are omnipresent which makes globalisation a multidimensional process. (Robinson 2008, pp. 126-127).

Major questions within globalisation are whether the core of the process is economic, political or cultural? Does globalisation refer more to a condition rather than to a process? Most theories see it as a process of transformation - globalisation as a process and globality as a condition. Globalisation raises also the question what kind of relationship it has with the nation state and is the authority of a nation state being impaired. It can be asked whether globalisation involves internationalisation and an increased intensity of trade among states or transnationalisation which surpasses the nation state system. (Robinson 2008, pp. 125-128.) Ulrich Beck has stated that in a cosmopolitan society the cosmopolitan values become more vital than the values of specific nation states (Beck 2000, pp. 390). It is vital to acknowledge that there is no one theory of globalisation, rather many theoretical discourses (Robinson 2008, pp. 128).
Two research categories can be found within globalisation; those who study particular issues or problems related to globalisation and those who are studying the concept of globalisation and theorizing this concept. Yet, there is no one absolute understanding on the meaning of globalisation and various and distinct interpretations on the social reality of globalisation can be found which makes the concept itself problematic. How the globalisation process is defined depends on the theoretical perspectives brought to bear the definition. (Robinson 2008, pp. 126). In this internship project the approach can be said to be on particular issues caused by globalisation development within international trade and state's role in these issues.
World system theory claims that globalisation is virtually synonymous with the birth and diffusion of world capitalism. According to the theory, the correct unit of analysing globalisation and modern world is not class, state, country nor society but the larger historical system which includes the these categories. Capitalism is seen as the power that brought all people around the globe into a single worldwide structure. By the nineteenth century there was one system (capitalism) that had reached the entire planet. Yet, the theories leading adherents reject the concept of globalisation. A key effect in the world-system theory is the centrality of the state system and the competition between states which maintains the system itself. (Robinson 2008, pp. 128-130.)
Theories of global capitalism see globalisation as a stage where global capitalism develops and functions. These theories have their focus on the financial system and a new way of global production which can be seen to have replaced the previous national forms of capitalism. Robinson has formulated three dimensions for global capitalism theories: transnational production, transnational capitalism and a transnational state. The world economy has become a global economy. The national economies of single countries, which previously were linked to each other through finances and trade, have gone through changes as the production process itself has been globalised which integrates the national circuits into global production circuits. Globalisation causes new transnational class relations across borders which differ from the old national class structures and international class conflicts. According to the supporters of these theories, the emergence of international political and planning agencies is an influence of transnational state structure. These structures are networks of supranational institutions where nation states are represented but where the global accumulation processes are run over by the national interests.  The global capitalism thesis has been brought to even a more advanced level as some theorist have introduced a concept of empire of global capitalism which is a universal order where neither geographical nor social boundaries or limits exist. (Robinson 2008, pp. 130-132)
Theory of transnationalism is seen as an umbrella concept which includes various processes that occur both in global and local level. These practices are economic, political, cultural and social practices which link people and institutions across nation state borders and which are both an effect of globalisation as a force that fosters it (Robinson 2008, pp. 136-139.) It can be defined as the constant movement of people, products, finance and ideas which crosses and covers globally all areas (Bieckmann and Muskens 2007, pp. 3).
Globalisation development can also be studied with the terms of modernity where globalisation process involves the universalisation of nation state, capitalist system and state surveillance. Globalisation can be claimed to be a distribution process and universalisation of modern values, institutions and practices. The emergence of supranational institutions modern organisation norms is referred as the rise of 'world society'. (Robinson 2008, pp. 136-139.) Arjun Apparurai has introduced the concept of global cultural economy where he sees tension between cultural homogenisation and cultural heterogenisation. He sees an alternative order for economy, politics and culture during the globalisation age. (Robinson 2008, pp. 139-141.) This 'alternative order' relates also to the changing role of nation states during the globalised era.
As an example of barriers traditionally faced in international trade include the extra costs of doing business in a foreign country (such as communication and transport costs), language barriers and costs caused by sending personnel abroad. Also challenges may rise from the fact companies most often are outside of the local government and business networks. On the other hand, investments made by foreign companies may harm the business practiced by the local companies in the "host" countries which in many cases globally have caused that countries have begun to protect their local production. (Markusen 1995, pp. 173-174.) States have a complex role in the global economy: on the other hand they wish markets to be open and barriers to be low for their “own” companies when entering international markets, but on the other hand they are expected to protect the local production by legislation and rules.

2.1. Liberalism and neoliberalism in globalisation theory

According to the globalisation model, as the globalisation development increases, the nation states authority decreases and economical trade and market can function without the states control. This latter idea is referred as liberalisation. It is claimed that globalisation causes liberalisation since when the national borders are opened also the free movement of capital is facilitated. In the global economic context liberalisation includes the fight against trade barriers and other restrictions on trade. The autonomy of the market is emphasised. Ending trade restrictions between nation states is seen as a vital thing for the national economies. According to the liberal philosopher John Locke, individuals should not be under the control of a state or state institutions. The state is to serve individuals but the effect of a state should be minimal in the lives of the individuals. The individualism provides two other key values in liberalism; democracy and capitalism. (O'Bryne & al. 2011, 35-36.)

Milton Friedman has stated in 1960's the following: “There is one and only one social responsibility of business – to use it resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud”. (Friedman 1962, pp. 133.) This citation is to clarify the light role liberalism would give to the public sector.
Neoliberalism can be said to be the philosophy behind current day’s economic globalisation. It is an elongation of the liberal philosophy. Neoliberalism is based on the idea that corporations should be able to be freely using all means that provides them with an economic advantage which means national and international markets should function with little government regulation and public expenditure is seen as a waste. (WHO 2014.)
In order to assure that international trade functions freely, all markets should be open to competition and market forces should also define economic relationships. Economic globalisation is driven by neoliberal ideology. Removing barriers between states allows market forces to govern the global economy. Commercial activity and market forces are seen as the most efficient concepts for producing and supplying goods and services (STWR 2014.) In the case of international trade, neoliberal views prefer the reduction of rules and restrictions and removing barriers between states in order for market forces to drive the global economy. (WHO 2014.) These policies have been implemented by governments who are also attempting to secure their financial interests and assets within the world economy (STWR 2014).
Milton Friedman has stated in 1979 that the experiences of past years - decreasing growth and declining productivity - gives reason to suspect, will the initiatives of the private sector win the 'deadly' effect of the actions of the public sector. We should not authorize the new class of civil servants spend more and more of our income - assumingly from our part. According to Friedman there is a conflict between government programs and the actual results you get from them. The most loyal supporters of public sector have been forced to recognize the failure of the public authorities. It also states that their solution to new problems is almost always the expansion of the public sector. (Friedman 1979, pp. 340.)

2.3. Key concepts and approach
The dialectical tension between globalising and localising processes is one of the key issues faced when researching about the economic, political, social and cultural change (Dicken 1994, 101). In this project global and local are understood as levels in which both globalisation affects. Globalisation is a phenomenon occurring globally (between states and geographical areas) but these days it is having an increased impact on the local level also. The report used as material provides an example of this. Globalisation, in the context of this project, is comprehended and reviewed as a development affecting and changing state's role as a power institution by causing the states interest and range to be increasingly outside of only its own area. It for example shapes the economic field to become more complex and consequential. This causes that states and public sector needs to be more adaptable to this new globalised context. Internationalisation is seen as a development occurring as a part of globalisation, which for example causes that companies growth potential is increasingly outside of companies "home state" which reinforces international trade. The growth of international trade can be seen as a consequence of globalisation (or vice versa).
The focus in the report used as material in this project is in international trade and a small developed country's responses to the challenges globalisation brings to companies’ international growth prospects. Paul Hirst and Grahame Thompson have stated that "We do not have a globalized economy; we do have an international economy and national responses to it." (Dicken 1994, 102.) The internationalisation report on trade barriers conducted by the Finnish state could be seen supporting Hirst's and Thompson’s opinion: the need itself to write such report about internationalisation is a sign of an ongoing globalisation. The report and survey on internationalisation can be seen as an example of a small state's 'coping mechanism' in this international economy. The whole concept of the Team Finland network can be seen as a national response. It is one example of an action state has taken in order to stay tuned with the globalisation development.

3. Observations from the report Internationalisation and barriers to trade in 2013

In 2012, Ministry for Foreign Affairs conducted a survey on internationalisation and barriers to trade, to examine internationalisation among enterprises as well as trade barriers and investment obstacles encountered by them. The survey was conducted as part of the Team Finland concept in cooperation with different ministries and other stakeholders. The survey was posted in to more than 7,000 enterprises engaged in foreign trade. About 600 companies responded to the questionnaire (Nieminen & al. 2013, pp. 5-7.)

The report, Internationalisation and barriers to trade in 2013, is based on the results of this survey. It is one of the first concrete testimonies of how cooperation through the Team Finland network can be applied to find new ways of supporting the internationalisation of Finnish enterprises. The Team Finland network promotes Finland and its interests abroad. At the core of the Team Finland network are three Ministries – the Ministry of Employment and the Economy, the Ministry for Foreign Affairs and the Ministry of Education and Culture – together with publicly funded institutions and Finnish offices abroad. (Nieminen & al. 2013, pp. 5-7.) Robinson's world system theory, where centrality of the state system and the competition between states are seen as forces maintaining the current capitalist global economy, could be implemented here: the state institutions are participating in the global economic competition by promoting the interest of Finnish companies. Team Finland network and report are examples of tools how to participate in this competition. State institutions have had to modify their strategies and actions to response to globalisation.
The Finnish Government wanted to conduct a survey among companies and ask them directly what kind actions they would like have to support their internationalisation process. This is a sign of trying to maintain a positive attitude and the interactive relation to business world. The governmental organisations are attempting to provide an image that also national and governmental actions are there to stimulate economy by promoting international trade. This can be seen opposing Milton Friedman's opinion that the expansion of public sector is only harming business life. The report shows that the public sector institutions are aiming to a dialogue with the companies. An image that the public sector is on the companies "side" when it comes to entering international markets is provided. This is natural since when it comes to entering global markets, a state and companies functioning in this particular state have the same goal of growing economic prospects.

3.1. What kind challengers are the companies facing?

Finnish enterprises reported all in all approximately 1,400 barriers to trade and investment. The report shows that the number of barriers in general has increased. The barriers reported are mainly problems related to the export or import of goods. About 30 per cent of the barriers to trade and investment that the Finnish enterprises face were encountered in trade with Russia. This is a natural finding as Russia is Finland’s largest trading partner. (Nieminen & al. 2013, pp. 15 and 23.) The concept of empire of global capitalism - a universal order with no limits and boundaries - introduced by Robinson and other theoreticians can not yet be seen in the results of the survey as more and more restrictions in international trade are found. As international trade increases, also a growing amount of problems in trade are faced. Some party needs to take a role in facilitating these problems and the public sector is often seen as a natural choice for this role.

Based on the report, companies wish for more information on the various options and opportunities about financing their internationalisation attempts. According the results of the survey the right instrument concerning export financing can be a challenge, especially for small and medium-sized enterprises. The opinions of enterprises regarding the functionality of export financing were split. Some of the enterprises are satisfied with the functionality of export financing, while others claim that the right financing form is unavailable or that the application process is bureaucratic, inflexible and expensive. (Nieminen & al. 2013, pp. 7 and 17.) This implies that if state wants to have an interactive role in this area, it should also have unambiguous tools to maintain this role: a compact plan of means and resources. Otherwise the aid provived by the public sector within internationalisation becomes untapped.
The number of barriers associated with service provision has increased, which reflects the fact that a growing number of the enterprises are specialized the service area. There were practically no reports of barriers to investment. All of the barriers to trade and investment issued by the companies have been analyzed at the Ministries and the enterprises have been asked for additional information, for further processing of analyzing and solving the process. (Nieminen & al. 2013, pp. 23.) It can be seen the state truly wants to be involved and takes the companie's concerns to heart.
The results of the survey indicate that companies have increasingly reported various kinds of local content requirements which are faced on the export markets of third countries. Several countries tend to protect their domestic production and labour force, as well as attempt to limit the possibilities for foreign enterprises. This is done by assorting local content demands and “buy national” legislation. Some countries grant an import permit only for products that are not locally produced. (Nieminen & al, 2013, pp. 25). In the contemporary world companies have to be aware and have control over circumstances on both global and local level. The report on trade barriers brings to light that an active state role is still expected in international trade, as a problem solver for the Finnish companies. On the other hand it could be asked, is the Finnish state protecting its own domestic production, and if so, what kind of expectations the state faces in this area.

3.2. What kind of support the companies desire from the public sector?

Despite of the fact that the currently ruling neoliberalistic theories do not support states interfering with private sectors operating conditions, the results of this survey reveals that companies still see internationalisation services provided by public authorities as important. For instance, many companies consider that the minister-led export promotion visits are useful. Finnish companies are also hoping actions from the state with the removal of barriers to trade especially in challenging markets. Networking services, monitoring of the business environment and the arrangement of various promotional events were considered the most useful services that the state can provide. One of the main wishes is that all services should be available on a one-stop basis in order to diminish the bureaucracy. (Nieminen & al. 2013, pp. 7.) Based on the wishes coming from the business sector towards the state, it can be claimed that states role in the globalised economy is complex: states are expected to let the markets function without control, but on the other hand when problems are faced, businesses welcome help from the public sector. It seems states are hoped to have a role of an 'business agent' within international trade.

Export promotion trips in order to accelerate the companies export attempts is a traditional and widely used and very national practice where the local knowledge and relations of the embassies pay an important role. In this work national structures, e.g. the Finnish embassies are put to account. Companies are in their export endeavours backsided by the political leaders and diplomats as discussions are practiced through. According to the results of the survey some smaller companies expressed their suspicion on the advantages of these promotion trips. Several respondents expressed their interest in participating in publicly organized export promotion trips. As a response to the question on desirable targets for export promotion trips, 660 individual travel destination countries were mentioned. (Nieminen & al. 2013, pp. 7.) In Finland the president, ministers and senior public servants are performing a large number of visits abroad each year, including many export promotion and internationalisation trips throughout the world. It is possible to raise the trade barriers on the agenda of these visits. The report claims that the impact of senior representatives of the state can be vital in resolving trade problems. (Nieminen & al. 2013, pp. 55.) In the report it shines through that state is still expected to handle all the politics involved in international business life.
The report presents notable group of born global enterprises, whose home market is the whole world, as a rising global trend. These enterprises are predominantly engaged in various service sectors. One respondent answered:
“Actually, as we are born global, we are interested in all markets.” (Nieminen & al. 2013, pp. 13).
This citation describes well the global, transnational attitude and atmosphere that can be perceived among these enterprises. Products and strategies are no longer targeted only for national market. On-line marketing and shopping has expanded markets in a large measure. The national borders no longer hold relevance: the potential client can be anywhere in the world. In the case of the born global enterprises, state's role as the "business agent" is not as relevant as these enterprises tend to create their own global networking contacts.
Many support measures mentioned in the report are surely the Finnish Government's own actions and plans, but negotiations and measures are increasingly conducted and performed at the EU level. Also WTO (World Trade Organisation) holds a vital role in many cases. For example the free trade agreements negotiated by the EU agree on commitments with regard to the removal of customs tariffs and the other barriers to trade that go beyond the WTO agreements.
The primary objective of the World Trade Organisation is the reduction or elimination of barriers to trade (customs tariffs and other trade barriers) and agreeing on international trade rules. The WTO acts as a forum for multilateral trade negotiations, and its dispute settlement system permits the following of compliance with trade agreements. (Nieminen & al. 2013, pp. 55.)
The Trade Barriers Regulation is the EU’s trade policy instrument, which main purpose is to remove barriers to trade encountered by enterprises from EU countries on the markets of third countries. The Trade Barriers Regulation may be applied in cases where the third country practices are contrary to the international trade rules, especially the WTO rules and bilateral free trade agreements. (Nieminen & al. 2013, pp. 57.) Trade relations between the EU and the United States are taking big steps, as negotiations on an EU–US Trade and Investment Partnership Agreement began in the summer of 2013. In this kind of bilateral trade negotiations, state's still seem to have it's traditional, strong political role.
Several actions and support measures that the Finnish state is providing for companies in order to ease their internationalisation process are described in the report. The report reflects in many parts the challenges and coordination role state's have with resolving issues in international trade. For example, the free trade negotiations with non-EU countries are processing slowly and phase by phase. This stiff role states can have could be seen as a promoter for the neoliberal values within global economy.

3.4. Globalisation in the local level
In the survey the enterprises pointed out that internationalisation often begins already at local level which supports the theory of transnationalism. In Finland the regional Centres for Economic Development, Transport and the Environment (ELY Centres) have named their own Team Finland coordinators who help enterprises in the early stages of internationalisation. This is especially helpful for the small sized companies who emphasize the role of the local authorities and consider the publicly provided services to be good and necessary (Nieminen & al. 2013, pp. 15.)
Global and local are interacting and reacting with each other. Globalisation unites separate spaces so that local events in the place X affects on events thousands miles away in the place Y. Global processes are linked to local realities. Globalism is penetrated and restructured localities in new ways. Globalisation can be seen occurring at the local level also. (Robinson 2008 p 136: Giddens 1990 p 64.) In the report this can be seen as the local administrative institutions in Finland have also began to provide help for companies in their internationalisation attempts: the first steps to global markets are already taken at the local level.
Although we live in a globalised world we have to remember the local level and connections. In today's world global and local often go together more naturally than the global and national. More over the local business contacts are often created and maintained directly to the home countries through diaspora living in the country. One of the recent actions of the Finnish Government concerns the corporation taxation. In order to facilitate the export efforts of Finnish companies the Government decided to decrease the corporation tax. (Article of Lexia 8.1.2014.) Local efforts are vital when the aim is in the global sphere as globalisation can be either promoted or discouraged at the local level.

4. Conclusions

This internship project focuses on the challenges companies face in the current global economy and what kind of actions state's and public sector are wished to have as a promoters of the companie’s interests. It is important to mention that wide generalisations of state's role in international trade should not be conducted only based on this single report which focuses largely on diminishing trade barriers and promoting the export efforts of Finnish enterprises. It is good to remember that states also regulate, control and put sanctions on international trade. In global business environment this role will remain important also in the future. Though states partly have lost their sovereignty to the globalisation development, public sector has still raised its profile to the supranational field (including EU and the WTO).

All states perform a key role in the ways in which their economies operate. In the contemporary global economy the state may be legitimately regarded as a competition state, whose problem is one of facing "major adjustments to shifts in competitive advantage in the global market place". In this respect, states take on some of the characteristics of firms as they strive to develop strategies to create competitive advantage. Both are, in effect, locked in competitive struggles to capture global market shares. (Dicken 1994, p 112.) The report supports this argument as the report itself can be seen as a part of a "business strategy" for the Finnish state. Based on the report, the state is expected to have an interactive and flexible role. It should be aware of the challenges the enterprises are facing in global business.
In the report, the state provides an image that it attempts to aid companies with their internationalisation process and promises to take action to diminish the reported trade barriers. Yet, the lack or resources places its shadow and limits the action a single state can have in globalised economy. The growing importance of transnational agencies can be seen in this report. As theories of global capitalism claims, this can be seen as an emergence of transnational state structure (in the case of this report the role of the EU and WTO in trade negotiations). It has become necessary for the states to cooperate if they wish to maintain a strong role in the global economy. This could be said to be particularly vital in the case of small states.
Many Finnish enterprises are already global actors, not just the big multi-national companies, but also smaller and medium size enterprises especially in the service industry. The answers they gave in the survey reflect to this. Many firms build their business strategies to 'born global and grow global' - way of thinking. The growing amount of multi-national companies are bringing their own affect on the state’s role. It is sometimes claimed they are weakening the state's sovereignty and are rising as power users alongside states. Although the multinational companies and transnational actors are the main players in today’s global business world, the national governments have still a role as gatekeepers. Their input and expertise can be important during the negotiations in international trade agreements.
According to the report Finnish government shows good will and promises many actions in order to facilitate Finnish companies in their internationalisation efforts. The government promises that the information received through this survey will be used in the planning of export promotion and internationalisation activities for Finnish companies. Perhaps responding to this kind of questionnaire will help the companies to clarify their own needs and wishes and what kind of actions they want from the government. In this kind of procedure the dialogue is very useful and goes both ways. In a global world, it is important that both the public and the private sector has an active role and tries to influence the foreign operating environment.
Nation states are a part of globalisation process. An active role and dialogue with the companies and trade partner countries is important. This kind of survey provides useful information about the functioning of the markets and global environment in general. This kind of publicly available information can be said to be useful for new, emerging companies in their internationalisation aims. As a detail, it is worth mentioning that after conducting this survey, companies have a possibility to report barriers they face in international trade using an on-line form that can be found in Foreign Ministry's webpage. This is a sign the state truly wants to be involved in companies internationalisation process and is responding to the challenges of globalised economy. The Minister himself promises in the preface of the report that "our work is just beginning".
Globalisation has provided economic action and international trade with new, tempting possibilities, but also set new challenges. It is vital to be able to interpret the changes in the global environment and the effects these changes can cause. The case studied in this project is an example of how processes should be examined increasingly as a part of a global phenomena and in a wider context than as a single nation states own action.

5. Literature

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7. Markusen, James R. 1995, The boundaries of Multinational Enterprises and the Theory of International Trade, The journal of Economic Perspectives, Vol. No. 2. (Spring, 1995), pp. 169-189.
8. Beck, Ulrich (2000) Kosmopoliittinen perspektiivi toisen modernin sosiologiasta. Eija Nurminen (edit.) Sosiaalipolitiikan lukemisto. Helsinki: Palmenia, 377-415.
9. Bieckmann, Frans & Muskens, Roeland (2007) Circular migration, Creating a virtuous circle. The Broker, issue 1, April 2007. Available at: (Accessed 17 January 2014).
10. Hall, Stuart (2003) Kulttuuri, paikka, identiteetti (New cultures for the old, 1995). Lehtonen, Mikko & Löytty, Olli (edit.) Erilaisuus, Tampere: Vastapaino, 85-128.
11. Friedman, Milton (1962) Capitalism and Freedom. University of Chicago Press: Chicago.
12. Friedman, Milton (1979) Vapaus valita. Suom. Vesikansa Jyrki & Lempiäinen Heikki. Otava, Helsinki. The origina book: Free to choose vuodelta 1979. Malmö, Sweden
13. Nieminen, Mikko & Siikaluoma Heli & Koskela Akseli & Vilhunen Leila (2013) Internationalisation and barriers to trade in 2013. Team Finland

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14. Article of Lexia 8.1.2014: Significant Changes to Taxation on Corporations and Dividends in Finland
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