International Business: Sweden
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Transcript of 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