International Business Seminars

The early settlement of Iceland, known as the Landnám period, began around 874 AD with Norse chieftains fleeing political strife in Norway. Led by figures like Ingólfur Arnarson, who is traditionally regarded as the first permanent settler, these Norsemen established farms and brought their cultural and legal traditions to the island. They were joined by Celtic settlers from the British Isles, contributing to the diverse genetic and cultural heritage of early Iceland. The settlers organized themselves under a communal system, founding the Althing in 930 AD, which served as the governing assembly and played a pivotal role in shaping Iceland’s early society.

Modern Icelandic history began in the early 20th century, marked by Iceland’s full sovereignty from Denmark in 1918 and its transition to a republic in 1944, facilitated by Denmark’s occupation during World War II. Post-war economic growth and modernization, driven by fishing and geothermal energy, transformed Iceland into a prosperous nation. The financial sector’s collapse in 2008 led to severe economic challenges but also spurred substantial reforms and recovery. Iceland has since become a leader in renewable energy and gender equality, renowned for its vibrant cultural life and political stability.

For a snapshot and forecast on the South Korean economy, check out this link. 

Iceland’s economy is characterized by its robust reliance on renewable energy and fisheries, with geothermal and hydroelectric power supplying nearly 100% of its electricity needs. Fishing remains a crucial export industry, although tourism has become increasingly significant, contributing around 40% to the GDP. The 2008 financial crisis severely impacted Iceland’s economy, but subsequent reforms led to a resilient recovery, characterized by innovation and diversification. Today, Iceland boasts one of the highest standards of living globally, underpinned by a strong welfare system and vibrant sectors in biotechnology and creative industries. 

The Icelandic króna (ISK) has been Iceland’s currency since 1874, succeeding the Danish krone amidst Iceland’s push for financial autonomy. Initially linked to the Scandinavian Monetary Union’s gold standard, the króna has undergone multiple revaluations and adaptations, including the issuance of a new króna in 1981 at a 100:1 ratio to curb hyperinflation. The 2008 financial crisis precipitated a significant depreciation, leading to strict capital controls. Despite these challenges, the króna remains central to Iceland’s monetary policy, managed by the Central Bank to ensure economic stability. Currently, the króna supports a dynamic economy, reflecting Iceland’s independent fiscal strategies. 

Iceland operates as a parliamentary republic with a framework that separates powers among the executive, legislative, and judicial branches. The President of Iceland, currently Guðni Th. Jóhannesson, serves as the ceremonial head of state, elected for a four-year term. The Prime Minister, presently Katrín Jakobsdóttir, heads the government and oversees the executive functions, implementing laws with a Cabinet appointed by her. The legislative power is vested in the Althingi, Iceland’s parliament, which consists of 63 members elected every four years. The judiciary is independent, ensuring laws conform to the constitution.

In Iceland, the legislative process begins in the Althingi, the national parliament, where any of its 63 members or the government can introduce a bill. Proposed legislation is subject to three readings. During the first reading, the bill’s general principles are debated. After committee review and public consultation, the second reading involves a detailed discussion and potential amendments. The third reading focuses on final approval. If passed, the bill is signed into law by the President of Iceland or, if vetoed, can be subjected to a national referendum. The process ensures transparency and public engagement.

Iceland is an island nation located in the North Atlantic Ocean, straddling the boundary between the North American and Eurasian tectonic plates. Its landscape is shaped by volcanic activity and glacial erosion, featuring an array of volcanoes, geysers, hot springs, and lava fields. Prominent features include Vatnajökull, Europe’s largest glacier, and the Mid-Atlantic Ridge, where new crust forms. The island’s terrain is predominantly mountainous, with vast highlands, rugged coastlines, and fertile lowlands that support agriculture. Iceland’s geographic position near the Arctic Circle results in a subarctic climate, with mild coastal temperatures and considerable seasonal variation in daylight. 

Iceland’s ice fields, primarily located in the interior highlands, are significant glaciers that cover about 11% of the country’s land area. The largest, Vatnajökull, encompasses over 8,000 square kilometers and is Europe’s most voluminous ice cap, home to numerous active volcanoes beneath its ice. Other notable ice fields include Langjökull, Hofsjökull, and Mýrdalsjökull, each contributing to Iceland’s hydrology through meltwater that feeds rivers and hydroelectric projects. These glaciers, though retreating due to climate change, remain central to Iceland’s natural landscape, influencing both local ecosystems and human activities such as tourism and energy production.

Iceland’s volcanos and volcanic activity are a defining feature of its landscape, resulting from its position on the Mid-Atlantic Ridge, where the North American and Eurasian tectonic plates diverge. The island hosts about 130 volcanic mountains, with notable eruptions including Eyjafjallajökull in 2010, which disrupted global air travel, and the Fagradalsfjall eruption in 2021, renowned for its spectacular lava flows. Volcanic activity forms new land and geothermal features, such as geysers and hot springs, contributing to Iceland’s renewable energy resources. The frequent eruptions and seismic activity also shape the landscape, posing challenges and opportunities for monitoring and preparedness. 

Icelandic naming conventions are rooted in historical and cultural practices that emphasize familial ties and patronymy. Traditionally, Icelanders do not have surnames in the conventional sense; instead, they adopt a last name based on their father’s first name with the suffix “-son” for sons and “-dóttir” for daughters. For instance, a man named Jón with a father named Ólafur would be known as Jón Ólafsson, and his sister would be Anna Ólafsdóttir. This system dates back to Iceland’s settlement period in the 9th century when Norse settlers brought their naming customs, which were simpler and based on familial lineage rather than inherited surnames. The Icelandic Naming Committee, established in 1991, regulates new names to preserve linguistic and cultural integrity, ensuring that new names align with Icelandic grammar and tradition while allowing for creativity and innovation within the naming conventions.

The Icelandic Sagas are a collection of medieval narratives written between the 12th and 14th centuries, chronicling the history, legends, and societal norms of early Icelandic settlers. These sagas are renowned for their vivid portrayal of Viking Age Iceland, depicting heroic deeds, familial conflicts, legal disputes, and exploration. They include both family sagas (Íslendingasögur) and legendary sagas (Fornaldarsögur), reflecting the oral traditions of storytelling prevalent in medieval Scandinavia. The sagas hold immense cultural significance for Icelanders, serving as a source of national pride and identity. They provide valuable insights into Icelandic history, language, and social structures, influencing literature and arts globally. Their preservation and study contribute to the understanding of medieval Nordic culture and continue to inspire contemporary Icelandic literature and storytelling.

Þorrablót is a traditional Icelandic midwinter festival celebrated annually, typically between January and February. It dates back to the 19th century and has its roots in ancient Norse rituals, marking the end of winter and the beginning of spring. The festival involves feasting on traditional Icelandic foods that may seem unusual to outsiders, such as hákarl (fermented shark), svið (boiled sheep’s head), and various types of pickled meats and fish. These dishes are served with dark rye bread, butter, and Brennivín (Icelandic schnapps). Þorrablót is a time for Icelanders to reconnect with their Viking heritage, celebrate resilience in the face of harsh winters, and strengthen community bonds through shared cultural practices. It has evolved into a cherished tradition that not only preserves culinary heritage but also fosters a sense of national identity and unity among Icelanders.

Traditional Icelandic clothing reflects the island’s harsh climate and cultural heritage. Historically, wool played a central role due to the abundance of sheep. The traditional garment, the lopapeysa, is a knitted wool sweater adorned with distinctive patterns that vary by region and family, providing warmth and durability. Women traditionally wore the skautbúningur, a national costume featuring a skirt with an apron and a headdress called a “skaut.” Men’s attire included the faldbúningur, a formal outfit with a tailored jacket, knee-length trousers, and a brók, a type of short pants. These traditional garments are still worn during cultural festivals, weddings, and national celebrations, showcasing Icelanders’ pride in their heritage and connection to their ancestors’ way of life.

Wool holds significant cultural and practical importance in Iceland, stemming from the island’s abundant sheep population and harsh climate. Icelandic wool is known for its durability, warmth, and water-resistance, making it ideal for clothing that withstands Iceland’s cold and windy weather. The tradition of knitting wool garments, such as sweaters (lopapeysa), developed as a practical response to these conditions, with each region and family often having distinct patterns and designs. Knitting became a vital skill passed down through generations, blending functionality with artistic expression. The lopapeysa, characterized by its circular yoke and intricate patterns inspired by nature and folklore, has become an iconic symbol of Icelandic culture and identity. Beyond its practical use, wool and traditional knitting techniques embody a deep connection to Iceland’s rural heritage, fostering community ties and preserving local craftsmanship.

In modern times, Icelandic traditional dress has undergone adaptations that balance heritage with contemporary fashion trends and practicality. While the lopapeysa remains popular and continues to be worn for its warmth and cultural significance, it has also been adapted into more modern styles and designs. Younger generations and designers have incorporated traditional patterns and motifs into urban clothing, creating a fusion of heritage and modern fashion. The skautbúningur and faldbúningur, once reserved for formal occasions, are now worn more selectively, often during national celebrations or cultural events, emphasizing their ceremonial role. The use of Icelandic wool in fashion has expanded beyond sweaters to include accessories like scarves, hats, and even high-end knitwear showcased in international markets. These adaptations reflect Icelanders’ pride in their cultural heritage while embracing contemporary lifestyles and global fashion influences.

Accessibility for tourists in Iceland has significantly improved in recent years, making it easier for visitors to explore the country’s unique landscapes and attractions. Major highways and roads are well-maintained, allowing for relatively straightforward travel between popular destinations like Reykjavik, the Golden Circle, and the southern coast. Public transportation options are limited outside urban areas, but rental cars, camper vans, and organized tours provide flexible and convenient ways to navigate the island. Tourist facilities such as hotels, guesthouses, and campsites cater to a range of budgets, though reservations are recommended, especially during peak seasons. Information centers and tourist offices in major towns offer assistance with trip planning, booking activities, and obtaining maps and local advice. Despite its remote location, Iceland’s infrastructure and hospitality industry strive to ensure that visitors have a comfortable and memorable experience exploring its natural wonders.

Iceland is known for its progressive stance on LGBTQ+ rights and is considered one of the most LGBTQ+-friendly countries globally. Same-sex marriage has been legal since 2010, and Iceland consistently ranks high on indices measuring LGBTQ+ rights and equality. Reykjavik, the capital city, hosts an annual Pride festival attracting thousands of participants and tourists, celebrating diversity and inclusion. The country’s laws protect against discrimination based on sexual orientation and gender identity, fostering a safe environment for LGBTQ+ individuals and travelers. Tourists can expect open-mindedness and acceptance in most areas of Iceland, although respectful behavior towards local customs and cultures is always encouraged to ensure a positive experience.

Traveling through Iceland with kids can be a rewarding and family-friendly experience due to the country’s safe environment, stunning natural landscapes, and accessible attractions. Reykjavik, the capital city, offers child-friendly museums like the Perlan, which features interactive exhibits about Iceland’s natural wonders. The Golden Circle route, including Þingvellir National Park, Geysir, and Gullfoss waterfall, provides easy day trips from Reykjavik with opportunities for exploring geothermal areas and majestic waterfalls. The Blue Lagoon, though primarily a geothermal spa, offers family-friendly facilities and is a unique experience for children. Road trips along the Ring Road showcase Iceland’s diverse scenery, from volcanic landscapes to black sand beaches, with plenty of opportunities for outdoor activities like hiking, whale watching, and horse riding suitable for families. Accommodation options range from hotels to farm stays, many welcoming families with amenities such as family rooms and outdoor playgrounds, ensuring a memorable and enjoyable trip for visitors of all ages.

The Icelandic language is an Indo-European language belonging to the North Germanic branch of the Germanic languages. It is closely related to Faroese and Old Norse, the language of the Vikings. Icelandic is known for its conservative grammar and vocabulary, preserving many Old Norse elements that have been lost in other Scandinavian languages. This preservation is largely due to Iceland’s isolation and the deliberate efforts to maintain linguistic purity through language policies and education. Modern Icelandic has evolved with influences from Old Norse literature and sagas, reflecting a rich literary tradition. Despite its complex grammar, including declensions and conjugations, Icelandic is spoken by the majority of Icelanders and is actively promoted as a cultural cornerstone, contributing to the nation’s strong sense of identity and heritage.

Icelandic language dialects are relatively homogenous compared to other languages, owing to the country’s small population and linguistic preservation efforts. The main dialect distinction in Iceland is between the capital region, centered around Reykjavik, and rural areas. The Reykjavik dialect is considered the standard form, characterized by its pronunciation and vocabulary influenced by urbanization and media. In contrast, rural dialects often retain more archaic features, including variations in pronunciation and vocabulary reflecting regional histories and isolation. Despite these differences, mutual intelligibility remains high throughout Iceland, ensuring seamless communication among speakers from different parts of the country.

Before visiting Iceland, tourists may find it useful to familiarize themselves with a few key aspects of the Icelandic language. While most Icelanders speak fluent English, learning some basic Icelandic phrases can enhance the travel experience and show respect for the local culture. Common greetings include “Halló” (hello) and “Góðan daginn” (good day). “Takk” means thank you, and “Bless” is used to say goodbye. Places and landmarks often have Icelandic names, so having a basic understanding of pronunciation can aid in navigation and communication. Icelandic grammar can be complex, with distinct cases and verb conjugations, but locals appreciate any effort made to use their language. Overall, while English is widely spoken and understood, showing an interest in Icelandic language and culture can enrich interactions and foster a deeper appreciation for Iceland’s unique heritage.

Check out this video from the National Museum of American Diplomacy explaining the difference between each organization and how they function together to protect US citizens traveling abroad. LINK

LINK to list of U.S. Embassies and Consulates in Iceland