Overview

• Switzerland is a small, diversified market with multilingual nationals, situated in the middle of the European industry.
• The 7.2 million people in Switzerland are predominately intelligent, skilled and affluent. 
• The Swiss economy is estimated to have grown more than 3% in 2000--its best performance in ten years.
• Switzerland is a great country for businesses hoping to intro­duce new products into Europe.
• The Swiss continue to enjoy the world’s highest per capita income.
• The Federal Constitution does not limit trade and a canton’s intervention with trade is low.
• Switzerland is dependent on export markets to generate income and dependent on imports for raw materials to expand domestic goods and services.
• There is a favorable tax environment and a stable administrative and social structure.
•  Social security taxes are extremely competitive.

Business Culture

• English is a commonly used language for business and travel in Switzerland.
• The U.S. and Switzerland have strong economic ties, which have a great influence on the number of Swiss that visit the U.S.
• Switzerland is among 20 of the United States’ most important trading partners and ranks 7^th in foreign direct investment in the U.S.
• Switzerland has an effective legal framework to fight domestic corruption and laws are enforced effectively.
• Some American businessmen may find their Swiss counterparts conservative in dress.
• Greetings and introductions should use family names rather than first names.
• Punctuality, particularly in German-speaking areas, is highly valued. 
• It is important to make appointments ahead of time visiting unannounced is considered very rude.
• The banking system in Switzerland is very strong, making financing extremely convenient.

Politics

• Switzerland's attractiveness as a base for internationally oriented companies is enhanced by a 5 percent tax cut on dividends paid to capital corporations with capital holdings of at least 20 percent.
• The Swiss-E.U. bilateral treaties are being ratified as quickly as possible.
• The fight against fraud is being strengthened by the European Union’s treaty of cooperation with Switzerland after criminal acts caused financial damage totaling several billion euros in the E.U. annually. 
• The Swiss-EU bilateral pact is planning to reduce the alien population in Switzerland to no more than 18%.

Marketing Tips

• Trade has allowed Switzerland to prosper. 
• Manufacturers of capital goods who do direct exporting should find a limited number of customers who possess a large market share.
• Manufacturers and exporters of consumer goods should trade directly with a wholesaler (who is usually also the importer), engage the services of a representative, or sell to big retail subsidiaries that purchase mass-produced goods.
• One trend has been to decrease the number of independent retailers and increase the number of discounters, supermarkets and thrift stores.
• Be aware that prices can be increased 100% due to few discounters.
• Home shopping is becoming increasingly popular in Switzerland and has recorded enormous growth.
• Licensing can be a successful and profitable market entry strategy for U.S. firms.

Economy

• Switzerland has to concentrate on manufacturing and service sectors because it has no significant natural resources.
• Switzerland has a highly developed and efficient tourism infrastructure.
• Tourism is the most important U.S. export to Switzerland (earning $1.3 billion in 1997).  In 1998, some 410,000 Swiss came to the U.S. as tourists.
• Unemployment dropped to a record low of 2.4 percent and GDI generated real growth in 1999 and is expected to grow this year by about 2.8 percent.
• Some industries include: manufacturing of metals and electronics, mining, financial institutions, chemical plants, winter sporting goods and insurance (more Swiss are insured per capita than anywhere else in the world).