Denmark: Constitutional Monarchy with Liberal Minority Government

Categories: Taxation

Political: Denmark is a constitutional monarchy, with a minority government of Liberal coalition. Several parties can be presented in the Parliament due to the multi-party structure that is formed. They value democracy, human rights and has a strong sense of foreign policy with the willingness to increase international security and provide stability, to ensure great economic development. The last government election was held in 2015 and the next parliamentary election will be in the following year of 2019. (Ministry of foreign affairs of Denmark, n.

d.) Health regulations are playing an important aspect of Danish lifestyle. Life expectancy has a strong standing at age of 81 at birth. Meaning, in Denmark they provide a good health care spending and health strategy to ensure good lifestyle, this also proves the above 71 percentage of people how answered they are in a good health. They have introduced a new policy in 2015 to encourage customers to switch to healthy lifestyle. In the supermarkets they offered pre-cut vegetables next to the meat side to offer healthier options with their meal.

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The study had a successful effect, with a 61,3% increase in the vegetable purchase. (OECD, n.d.) According to a recent survey made by OECD Economics there is a need for another tax reform in Denmark. Tax revenue to GDP is 46%, that is well above the average 34,2%. Even though the supposed change, they should still continue to reform taxes in the favour of higher education, hospitals and entrepreneurship which would benefit the productivity growth. It is recommended for corporate taxation to establish ACE, allowance for corporate equity, to boost labour wages and moreover labour efficiency.

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Moreover, another suggestion would be to make personal taxation reduced as well to avoid the threat of financial instability. (Hermansen & Millot, 2019)Economical: In Denmark the average GDP in 2018 was 56 154 USD per capita which means it is more than 31 thousand Danish kroner in a month. (OECD, 2018) People in Denmark have medium to high disposable income, that means they can enjoy the luxury of shopping and eating out more in restaurants or simply just travelling. According to OECD the average household spending was 47,3 % of GDP, where it is written that it is typically around 60%. The household spending is the final consumption of an average person's basic needs (food, housing, clothes, transport etc...) This shows, that in Denmark people have more than half of their GDP to put into savings or to spend on leisure activities. (OECD, 2018) We can also see in the survey, that most people go out 2-4 times a month or even weekly to restaurants, meaning apart from their spending of necessities they can put aside enough part of their income to spend quality time together with families or friends. (Survey appendix) Based on the OECD key findings, the Danish population aged 15 to 64 has a 74% of working age which is higher than the average of 68%. This means unemployment rate is at a low rate, the percentage of unemployed labour worker for over a year is currently at 1,3%. In Denmark, people have a strong sense of work ethic and they like to have the feeling of security provided by their jobs. (OECD, n.d.) One of the most fundamental concepts of any market economic, is the relationship between supply and demand, known as the supply and demand curve. Demand refers to quantity, how much a product is wanted by the customers at a certain price point. As the price of the product or service will decrease the quantity will increase with it. Supply refers to the willingness of the company, how much the market can offer for a certain product. The connection between price and the supply of the good is in the market is called the supply relationship. In the supply slope, with the increasing quantity the price will increase as well. Finding the middle point of both the supply and demand it is known as equilibrium. This is the most efficient point for both the amount of goods that are being supplied and the being demanded equally. (Investopedia, n.d.) The supply and demand curve depend on personal income, the willingness of one individual's spending; on tastes and personal preferences which cannot be influenced by a company; as well as on the ability to substitute and on expectations on prices as well. Social: According to Statistics Denmark the population in 2019 is 5.8 million people, out of that 589 thousand people are leaving in Northern Jutland. (Statistics Denmark, 2019) Danes are generally satisfied with the standards of their living, out of ten their general satisfaction ranks at a 7,6 which is way higher than the 6,5-average measured by OECD. This ranks at top three with Finland and Norway. This explains the Danish hygge lifestyle, which is just enjoy life to its fullest. Living in this society it shows, how Danes are very calm behaved. Finding the balance between working life and life in general can be a difficult task for everyone, but especially for working parents who also need to take care of their children. Maintaining a happy balanced lifestyle is essential for physical and mental health as well. Danish people do not like to put their safety and health into jeopardising over work. Only 2% of Danish employees work long hours, which is a very low number which benefits the Danish society in terms of personal care. Full-time workers spend on a daily average 66%, approximately 15.9 hours of their day on personal activities and leisure, such as sleeping, eating and socialising. (OECD, n.d.) Considering all of this, it is clear that in Denmark people have a well-balanced lifestyle, where they put a big part of their life to working condition but enjoy more the quality time. Statistics made by Statistics Denmark, shows that from over 581 thousand of married couples, including same-sex marriage as well, 441 thousand have started a family, showing the family value of Danish people. There are over 300 thousand families with 1 or 2 children, around 100 people have 3 children in their family and a low number of families have 4 or more. (Statistics Denmark, 2018) In the survey we can also see, many people are arriving with their child or children, furthermore it is a noticed target group. Moreover, from one of the answers they mention how they were finished with the day and would just liked to spend some quality time together. (Survey appendix) In terms of immigration and culture shock, there are over 353 thousand immigrants from non-western countries and over 259 thousand from western countries living in Denmark, which has ben rising the past couples of years. This confirms that Danish society is welcoming, and people are not afraid to try out new things even, especially new cuisine. (Statistics Denmark, 2019) Trends are shaping the restaurant industry; thus, it is important to keep up with the changes as customers become more sensitive towards expectations. Global, international flavours are expanding in a high rate, customers are getting more and more curious about new cuisines and tastes. We can also see in the survey that almost every answer about the reason of visiting the restaurant was because of the cuisine, whether if it is new or have tried it before. It is still considered international and something new and exciting. (Survey appendix) Furthermore, another big trend that is changing so many people's lifestyle is being vegetarian or vegan. People are getting more and more conscious about what is getting put into their plates. Plant-based options are getting into their peaks for numerous benefits and health reasons. (Amin, 2019)Technological: The internet is affecting everyone's life in these days; internet infrastructure thus is an important aspect for any restaurant. In a survey made by Deloitte, 85% of respondents said they have visited the restaurant's website and examined the menu beforehand. Furthermore, it is also important to have a connection to customers and provide them a place where they can express their opinion. (Hughes, 2019) Mobile broadband subscriptions in Denmark is 131/100 inhabitants, which is higher than the average. This measurement only shows the mobile subscriptions for internet allowance. (OECD, 2018) OECD also shows that 92,7% of all the households have internet access. (OECD, 2018) With many people having mobile devices and internet access, there can be a great communication system between the restaurant and the customers. Technology awareness can influence any company's vision. New ways and trends are being introduced into the industry. For example, more and more restaurants are replacing pens and notepads with digital form of ordering such as an iPad or tablet. With that way, it does not only show the restaurant's well-awareness, but makes it easier and faster to get the order into the kitchen. (Restaurant Den, n.d.)Environmental: Denmark is generally very respectful towards nature and feel the need to keep the environment as sustainable as they can. Danes make an effort to pay attention to waste recycling, water management, renewable energy and also green transportation, hence the bicycle culture. (, n.d.) Sustainability in the restaurant industry is very important aspect, it preserves the natural environment, promotes greenness and enhances the style of living. Many restaurants have the chance to increase their profit only through renewable energy and energy efficiency. Many restaurants operate through long hours, hence the electricity they use is high as well, cutting energy waste is an important role towards being environmentally aware and friendly. This could include inventing into energy saving equipment such as LED lightning or dishwasher that is operating in lower cost. What is a major problem in the restaurant industry is food waste. According to the World Resources Institute, one-third of food production intended for human consumption is going into waste. This contributes to a loss of 940 USD billion in a year and 8% of the annual global greenhouse emission. Implementing in recycling programs such as reduction and reuse program will help the restaurant towards zero waste and help the environment as well. (Prigge, 2017) Climate and weather in Denmark are usually very unpredictable. As global warming is getting more and more serious Danish weather will change with it. Winters get usually cold and the icy wind will help no other. People will spend more time at home and the streets are less full of life and people. However, when it gets hotter, such as this time, in May people are spending more time outside in parks and in restaurants. (Norman, 2018) As the manager mentioned in the interview during summer Danish people are most likely to spend time outside and sitting outside in the restaurants as well, they will not likely to eat spicy food when the weather is hot outside already. (Interview appendix).Legal elements: In Denmark every shops and restaurants that are associated with food and beverages are responsible for complying with food regulations. That is where the Smiley is an important aspect. Inspectors of the food authorities are visiting these firms on a regular basis, between one and three times a year to inspect the health conditions. The Smiley need to be in a visible place for customers to see how the business applies to the regulations. It is a very important inspection in Denmark, bad smileys can get any enterprise out of business and it is hard to obtain them back. (Ministry of Environment and Food of Denmark, n.d.) In Denmark, the international trade policy is within close co-operation with other EU Member countries, they believe in the increasing benefits of trading internationally including the developing countries. The World Trade Organization (WTO) is in the main focus for both the EU's and Denmark's trade policy, it is a strong international legal system where the rules are strongly set and there is a sense of legitimacy. (Ministry of foreign affairs of Denmark, n.d.) Trading policies are an important role in the South Indian's life, they are importing ingredients from Germany, henceforth they need to be aware of any changes and how the policies work. As every company, they have employees and employment law as well. In Denmark, the employment agreement can be contracted in both written and verbal form as well, however if it is a verbal agreement, the employee still need to have a written statement of the material terms of employment and responsibilities, moreover personal information of course. Danish employment law covers both white-collar and blue-collar workers and self-employed workers equally. (ICLG, 2019)

Updated: May 03, 2023
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Denmark: Constitutional Monarchy with Liberal Minority Government. (2019, Aug 20). Retrieved from

Denmark: Constitutional Monarchy with Liberal Minority Government essay
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