international business: sweden

8/8/2019 International Business: Sweden

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OFFICIAL NAME KINGDOM OF SWEDEN


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Swedish system of GovernmentSwedish system of Government

Sweden is a parliamentary democracy.

The constitution declares that all public

power in Sweden proceeds from thepeople and that the Riksdag (parliament)

is the foremost representative of the

people


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Political StabilityP

olitical Stability

No political assassination of leaders

Strong relations with neighboringcountries

No international disputes on investments

Free trade zone ports


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Pro-BusinessClimate

Generosity of subsidies from Govt

Grants include tax relieves, rent and interestcut etc

Microsoft, oracle, nokia, ericsson have

entered in Sweden


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Ministry of Finance

Central government budget

Taxes

Banks securities and insurance International cooperation

Local authorities

County administrative boards Public administration


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Central Government BudgetCentral Government Budget

The central government budget reflects

external circumstances such as the state ofthe global economy.

The government uses the budget to lay

down the direction of economic policy.


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TaxesTaxes

One of the tasks of the ministry of financeis to formulate proposals for legislation on

taxes and social insurance contributions.


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International Cooperation

The ministry of finance is responsible for

Swedish participation in international

economic and financial cooperation and

prepares the ground for Sweden to take a

position on a broad range of economic

policy issues


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Ministry of Foreign Affairs

International law and human rights

Global development and development

assistance

Trade policy

Foreign and security policy

Assistance to Swedes abroad


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Global development andGlobal development and

development assistancedevelopment assistance

The government bill shared responsibility

presents the common objective ofcontributing to equitable and sustainable

global development which must embrace

all policy areas


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Trade PolicyTrade Policy

Free trade is pre-requisite for Swedes

welfare. This is why Sweden is vigorouslypursuing open simple and fair conditions

for international trade and investment.


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Legal SystemLegal System


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Civil LawCivil Law

Protection of consumers, for instance

with regard to purchases of goods and

services, door to door sales, consumer

credit and consumer insurance

Consumer ombudsman (kO) may

apply to the consumer complaints

board if a group of consumers havesimilar claims on the same grounds, a

so-called groupaction


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Establishing a BusinessEstablishing a Business


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Franchising

It is strongly recommended that companiesconsidering franchising in sweden conduct

a qualified legal study to ensure fullvalidity and enforcement of franchisingagreements.

Franchise networks, which have beensuccessful in the united states, will notautomatically succeed in Sweden, but aname that is well known is in the U.S

market does have great advantage


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Distributions & Sales

Distributions & Sales

Sweden offers American exporters a

wide range of methods for the

distribution and sales of promotion.

Major distribution centers are in

Stockholm, Gothenburg and Malmo


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LegalP

rotectionLegalP

rotection

Patents

Copyrights

Trademarks


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EconomicEconomic

EnvironmentEnvironment


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currencycurrency


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Foreign currencyForeign currency

transactionstransactions

Foreign currency transactions are

conducted officially in commercial banks

and in exchange offices All foreign currency must be converted to

Swedish Krona in order to make Swedish

fiscal & monetary policies very effective


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Communication & TransportationCommunication & Transportation

60% people uses cell phone

80% have access to internet

256 airports and vast number ofports and harbors


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AgricultureAgriculture

2% people belongs to Agriculture sector

6.8% land is cultivated

Fertilizers and machinery is being used in

the land

Major crops are oats, wheat, potatoes,

barley and sugar beat


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Central Bank, Riksbank

The Riksbank is considered to

be the oldest central bank in the

world and was founded in 1668The Riksbank three major

responsibilities are to promote

safe and efficient payment

system, to issue bank notes and

coins, to manage the gold and

foreign currency reserves


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Domestic Budget MManagement

Sweden has always been considered to be a

rich country, its domestic budgetmanagement is catastrophic.

The current situation in Sweden is vast

budget deficit and deflation which in turn

made it expensive for companies to invest The currency plunged over 30% and interest

rates skyrocketed to 750%


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Private Property

Sweden is signatory to multi-lateral

conventions on industrial and commercialproperty

Foreign companies employed 10% of work

force

Insurance of wider ownership


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Protection and safety of public health

The protection of health is extremely good

in Sweden. Less than 2000 individuals are

infected with HIV

Swedes tend to be depressed because ofdark climate and therefore producing

highest suicide rates in the world

Sweden has in many aspects the best

health care in the world


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Foreign Trade ImpactForeign Trade Impact

Foreign trade has a very large impact on

the Swedish economy; nearly 84% of

GDP has to do with either imports or

exports.

Swedens dependability of other nations is

often cited with, Sweden is doing well

when Ericsson and Volvo are doing well


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Demographics (way of living)

Cultural Aspects


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Marriage n family

Many people choose to live together

rather than get married.

Unmarried couples have same rights under the

law as married couples Family relationships

are maintained

through get

together and parties


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festivals

Lucia

Christmas

Midsummers Eve

And others


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RELIGIONRELIGION

Freedom of religion

State church is the largest church Islam is growing religion

Pork and alcohol is used in the food


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LanguagesLanguages

Swedish, small Smi- and- Finnish-

speaking minorities


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Making Decisions

Decisions are often made with great

considerations

Criticism has to be presented in a non-personal way

Swedish business culture strongly favors

compromising


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Punctuality

Swedish businessmen will have littleunderstanding in this case.

Punctuality is important not only in

working life but also to socialgatherings


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How to convince Swedes

Maintain eye contact

Avoid excesesive hand

gestures

Dont praise another region


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Findings & Recommendations


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Market OverviewFree trading nation

Export three times ascompared to exports

Individual tax is high but

corporate tax is low


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EnergyEnergy

Sweden is going to be oil free

economy

Electricity is produced from

nuclear and hydroelectric power

Ethanol will be used instead

of petrol

international business: sweden

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