Comparing GDP

Carl Størmer writes:

When seeing Norway's GDP in the context of this map, one realizes why Norway often is one of the last countries U.S. companies consider when expanding to Europe.

Norway might be an unattractive market when considering expansion because the market is so small and as a result there is little domestic competition. This has enabled local players to build monopolies or duopolies with substantial entry-barriers in many industries. Furthermore, the government has sheltered the domestic market against international competition by adding a hefty import tax and inconvenient delivery methods on goods purchased outside the country, rendering international online merchants at a disadvantage when competing on price and convenience.

On the flip side, if you manage to establish your business here, you can overcharge your customers and get away with horrendous customer service. The average Norwegian customer is not used to good service and competitive prices. Online merchants are slow. Recently it took four weeks before I received a book shipped to me from a local merchant. On a recent trip I recently purchased shoes for our kids in the U.S. The selection was superior, and the price: 1/4th of what the local Norwegian merchant was charging.

On the other hand, we have managed to build world-leading clusters in energy (oil, hydro) and shipping. We have inexpensive good, engineers and one of the most advanced markets in the world for mobile content (i.e. ring-tones etc.), and we are six hours ahead of the U.S. East-Cost, making us a good place to farm out work; you leave instructions at 6pm EST and have the work finished at your desk in Manhattan the next morning at 9am. This would give a Norwegian developer or project worker ample time to finish a good days work.

Creative Think adds this explanation of the graphic

It's an "economic production equivalence" map. The country whose name is inside of each state has a GDP that is approximately the same as the state in which it is placed. For example, California and France have approximately the same GDP.