OFFICIAL NAME KINGDOM OF SWEDEN

Swedish system of Government

• Sweden is a parliamentary democracy.
• The constitution declares that all public
power in Sweden proceeds from the
people and that the Riksdag (parliament)
is the foremost representative of the
people
 Political Stability

• No political assassination of leaders

• Strong relations with neighboring
countries
• No international disputes on investments
• Free trade zone ports
 Pro-Business Climate

•Generosity of subsidies from Govt

•Grants include tax relieves, rent and interest
cut etc
•Microsoft, oracle, nokia, ericsson have
entered in Sweden
Ministry of Finance
• Central government budget
• Taxes
• Banks securities and insurance
• International cooperation
• Local authorities
• County administrative boards
• Public administration
Central Government Budget
• The central government budget reflects
external circumstances such as the state of
the global economy.
• The government uses the budget to lay
down the direction of economic policy.
 Taxes

• One of the tasks of the ministry of finance

is to formulate proposals for legislation on
taxes and social insurance contributions.
 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
Ministry of Foreign Affairs
• International law and human rights
• Global development and development
assistance
• Trade policy
• Foreign and security policy
• Assistance to Swedes abroad
 Global development and
development assistance

• The government bill shared responsibility

presents the common objective of
contributing to equitable and sustainable
global development which must embrace
all policy areas
 Trade Policy

• Free trade is pre-requisite for Swedes

welfare. This is why Sweden is vigorously
pursuing open simple and fair conditions
for international trade and investment.
Legal System
 Civil 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 have
similar claims on the same grounds, a
so-called group action
Establishing a Business
 Franchising

• It is strongly recommended that companies

considering franchising in sweden conduct
a qualified legal study to ensure full
validity and enforcement of franchising
agreements.
• Franchise networks, which have been
successful in the united states, will not
automatically succeed in Sweden, but a
name that is well known is in the U.S
market does have great advantage
 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
 Legal Protection

• Patents
• Copyrights
• Trademarks
Economic
Environment
currency
currency

•1 Krona = 100 Ores

•No restrictions on exchange
are applied
 Foreign currency
transactions
• 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
Communication & Transportation

60% people uses cell phone

80% have access to internet
256 airports and vast number of
ports and harbors
 Agriculture

•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
Central Bank, Riksbank
•The Riksbank is considered to
be the oldest central bank in the
world and was founded in 1668
•The 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
Domestic Budget Management

 Sweden has always been considered to be a rich

country, its domestic budget management 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%
Private Property

 Sweden is signatory to multi-lateral

conventions on industrial and commercial
property
 Foreign companies employed 10% of work
force
 Insurance of wider ownership
 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 of
dark climate and therefore producing
highest suicide rates in the world
• Sweden has in many aspects the best
health care in the world
 Foreign 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.
• Sweden’s dependability of other nations is
often cited with, “Sweden is doing well
when Ericsson and Volvo are doing well”
Demographics (way of living)

Cultural Aspects
 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
festivals
• Lucia
• Christmas
• Midsummer’s Eve
• And others
 RELIGION

• Freedom of religion
• State church is the largest church
• Islam is growing religion
• Pork and alcohol is used in the food
 Languages

• Swedish, small Sámi- and- Finnish-

speaking minorities
 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
Punctuality
•Swedish businessmen will have little
understanding in this case.
•Punctuality is important not only in
working life but also to social
gatherings
How to convince Swedes

•Maintain eye contact

•Avoid excesesive hand
gestures
•Don’t praise another region
Findings & Recommendations
 Market Overview
•Free trading nation
•Export three times as
compared to exports
•Individual tax is high but
corporate tax is low
 Energy
• Sweden is going to be oil free
economy
• Electricity is produced from
nuclear and hydroelectric power
• Ethanol will be used instead
of petrol