How does the economy of Iceland work Essay Example | Topics and Well Written Essays - 500 words

How does the economy of Iceland work - Essay ExampleAs opposed to a purely capitalistic economy, the mixed economy in Iceland ensures regulated private ownership and safeguarded welfare of the citizens, a feature that limits exploitation of the public and concentration of resources in the hands of few individuals at the expense of other citizens. The countrys economy also operates through investments into creation of employment opportunities. Reported data on the countrys economy for instance indicates low unemployment rates, an indication that job creation is a prioritized sparing policy (CIA, p. 1).One of the core bases of the Icelands economic sustainability is its sportfishing industry. According to CIA statistics, the industry is responsible for to the highest degree 12 percent of the countrys economy and is a source of employment to at least(prenominal) seven percent of the countrys population. The fishing industry also sustains Icelands economy through the vast export of th e fishery products. Contributing about 40 percent of the countrys export identifies fishing as a major source of distant exchange to the country. The export aspect from fishing industry also indicates the countrys involvements and derived benefits of international trade. International trade is therefore another base for Icelands economic functionality and sustainability and includes other exports other resources much(prenominal) as metal ores. The economy is also characterized by significant foreign investments. With cheap energy sources such as geothermal power, the country has been able to take up investors from across the world. Investments in the economy have also undergone diversification towards exploration and exploitation of different available resources in the country. Further, the country has been able to attract foreign revenues through foreign investments by its domestic industries such as its financial institution. The