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Scott Martin SID 46599576 Today we will be looking at an ethical economic analysis between Hungary and Sweden When looking to place a subsidiary in a foreign country it is Important to assess economic ethical factors. Two key factors to consider are the Gender pay gap and wealth inequality. The extent to which these issues exists – and most importantly what is being done to address these issues – is an important consideration with regards to determining what country is best suited for our subsidiary.

The Gender pay gap Sweden Vs Hunagry From a utilitarian perspective any gender pay gap is important issue to consider as it impacts the assessment of the greatest amount of good for the greatest number of people. In Sweden, the gender pay gap is one of the lowest in the world with women on average earning 95.6 cents for every dollar a man earns when factors such as profession and sector are taken into account (sweden.se). In Hungary the issue of gender pay gap is also prevalent, this can be seen as women earn only 81.8 cents to every dollar a many earns when factors such as profession and sector are taken into account as of 2019. However, this wasn’t always the case as in 2012 and 2013 women working in the public sector were on average earning more than men.

What’s being done to fix it In 2009 Sweden introduced the discrimination act which demanded that employers take measure towards harassment in the workplace aswell as actively promote equality between men and women. This act was further expanded in 2017 which stated that people taking parental leave must be treated fairly. Similarly, The Hungarian government has set up multiple groups to aid in matters concerning discrimination, such as Equal treatment authority, which was established to aid in individual and public complaints regarding infringements of the equal treatment law

Wealth inequality Sweden vs Hungary When discussing wealth inequality and distribution, countries with a Gini coefficient score below 0.40 are considered acceptable. Sweden is ranked as one of the best in the world, with a Gini coefficient score of 28.8. While in Hungary wealth inequality is similar to Sweden with a Gini coefficient score of 29.9 again making it one of the best in the world.

What’s being done to fix it In Sweden, income taxes and monetary benefits are being used as a way to reduce inequality among the working age population which has been able to reduce this inequality by 27%.

Similarly the Hungarian government has set up a large-scale training programme with the intention of reintegrating the long-term unemployed back into the labour force

What does all this mean While both Sweden and Hungary are relatively similar regarding gender pay gap and wealth inequality. The important factor for our company to consider is what is being done about it. It can be seen that Sweden is already further ahead in tackling these issues when in comparison to Hungary, while also being more proactive. This then confirms that Sweden is still the better choice for our company to place a subsidiary in. thank you

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