Economy
The economic structure of Ursannaia runs on the principles of an open economy, meaning that they interact with the economies of other countries through international trade. This is good for the consumers, because it means that instead of having to choose domestic products produced within the country, they can buy a better or cheaper product made in another country. It also creates more competition among producers, which often results in lower prices and improved services. The country also makes several gains from trade, and people from other countries can buy goods produced in Ursannaia, meaning that the companies make more money. Ursannaia is neither a complete free market economy or a command economy, and runs on a mixed economy system. This means that most businesses and industries can be left to private firms. Having private firms is better than having government controlled businesses because private firms tend to be more efficient, since they have a profit incentive to cut costs and be innovative. Companies do need to be controlled to a certain point, though, and this is why the government of Ursannaia regulates excessively high prices to prevent monopoly power, and they also tax companies that have negative externalities (e.g. one that creates a lot of pollution). So most companies can be left on their own, but the government makes sure that none of them can control the market or create too much pollution or other negative externalities.
Ursannaia is part of the European Union, meaning that they use the Euro as their currency, and even though the Euro has been a bit unstable recently, there are other economic benefits that come with being in the EU, since it is one of the strongest economic areas in the world. The European Union only has 7.3% of the World's population, yet it accounts for 23% of the nominal global GDP. Being a part of the European Union also has free trade benefits, which is helpful for a country like Ursannaia, which makes a lot of money from exporting and importing goods. The economy of Ursannaia is rather stable, with a low inflation and unemployment rate.
Ursannaia is part of the European Union, meaning that they use the Euro as their currency, and even though the Euro has been a bit unstable recently, there are other economic benefits that come with being in the EU, since it is one of the strongest economic areas in the world. The European Union only has 7.3% of the World's population, yet it accounts for 23% of the nominal global GDP. Being a part of the European Union also has free trade benefits, which is helpful for a country like Ursannaia, which makes a lot of money from exporting and importing goods. The economy of Ursannaia is rather stable, with a low inflation and unemployment rate.
SectorsThe service sector (including financial services, tourism, goods distribution, and transportation) is the largest contributor to the GDP of Ursannaia. It creates employment opportunities for 75% of the population, and makes up more than 70% of the GDP. The second biggest sector is industry, with agro-industries being one of the largest segments of the industry sector. Industry employs 17% of the work force and contributes more than 20% to the GDP. The third largest sector is agriculture, which employs 5% of the work force, and the main goods that are produced in this sector are vegetables, livestock, sugar beets, potatoes, grains, and fruits. Ursannaia also does fairly well in the fishing industry, but doesn't make that much money off of it because the government has put in laws to prevent overfishing.
|
Main Exports/ImportsExports:
- Refined/Crude Petroleum - Diamonds - Animal Products (Cheese, pig meat, etc.) - Cars - Packaged Medicaments Imports: - Cars - Vehicle Parts - Refined/Crude Petroleum - Computers - Diamonds |
Quick FactsMixed Economy
Open to Trade Main Sector: Service Secondary Sector: Industry (Mainly Agro-Industry) Tertiary Sector: Agriculture Inflation Rate: 0.64% Unemployment Rate: 4% Currency: Euro |