Sweden Economy International Business Essay

Pages: 14 (4560 words)  ·  Bibliography Sources: 10  ·  File: .docx  ·  Level: College Senior  ·  Topic: Economics

The extensive protection of environment, active measures of improving the working environments and investing in clean technology are among the leading factors that have significantly encouraged the vast growth of industries in Sweden. The successful industries have taken corporate responsibility to a different level, and this has given them competitive advantage in the home environment as well as the world over. In the last accountability index statistics, Sweden industries topped the list of responsible competitiveness (Pyrko & Darby, 2011).

Another factor that has given these leading industries advantage is the investment on clean technology. This has given the industries' market as the cases of pollution continue to rise in the competing countries. The social responsibility to ensure gender equality has also boosted the industries in the society nation (A-gren, 2009). Policies from the government are also key contributors to the industries' success.

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The relations with associated industries are also noteworthy. These leading industries have heavily invested in the risk to support the companies associated with them. Most of the related industries are within Sweden with a few in the foreign countries and the neighboring nations. This is to ensure that they have a ready market for their products (Development, 2013). The industries take a keen interest in their consumers hence giving them advantage over their competitors. The demand for the products of the companies is not only at a skyrocketing level in Sweden, but also in the foreign nations. The foreign markets form the larger base of demand for the products of the industries in Sweden. Moreover, the strategies involved in the industries of the country are simply top class. The companies have strongly invested in their management teams. They realize the weight that a good leadership adds on the quality of any organization.

Essay on Sweden Economy International Business: Sweden Assignment

The large population of educated people in Sweden additionally provides quality and effective skills to most of these companies, hence enabling them to achieve efficiency in their operations. Competitiveness is healthy. The environment is wholly dominated by the only successful ventures, but other middle sized countries and industries are equally competitive. This keeps the large companies on watch as they know the market is highly competitive.

The nation has remarkably strong and inviting advantages that have led to the establishment of many industries; both local and foreign industries. Such have seen her gain the competitiveness that she has created today. Among these factors that have largely contributed in the development of these industries include the following. Sweden is among the most globalized nations and exceptionally competitive (Development, 2013). This ensures that the companies are exposed to a vast market. Secondly, the tradition that she has adopted to allow free flow of trade, investments and people. This enables allows identification and exploration of opportunities. Another factor is that has allowed the companies to grow is the fact that Sweden is centrally located to allow meeting point for the northern Europe and Scandinavian region. The way in which the country has allowed and adopted technology and technological innovations has also given these countries opportunity to grow.

Sweden monetary system

Like many other countries, before the invention of the currency system, Sweden used to trade by means of barter trade. However, in the early 17th century, the riksdaler was introduced. This was a regionally accepted currency that was used by several European countries at the time. This first from of currency was quite complex with several sub-divisions, but it did not have a decimal. Sweden adopted a currency with a decimal system which they named riksdaler riksmynt (Kent, 2008).

The current monetary system was established later following the enjoining of the country in the Scandinavian Monetary Union. This union allowed the member nations to base the value of their currency against gold. This allowed them to have a stable currency. The krona was adopted in 1873 as the currency that replaced the riksdaler riksmynt. The krona is not only used in Sweden but also in Iceland and Faroe islands. The Swedish krona is also called Swedish crown. Its symbol is 'kr'. It boasts of being among the few still surviving currencies of the ancient era (Kent, 2008). Most European countries have replaced their initial currencies with the euro. It is also the strongest of all the other kronas. Sweden, being a regular exporter, has continued to enjoy stable growth over time. This growth has been associated to the strength the krona. The strong exchange rate of the currency is also determined by the country's monetary policies.

Some of the factors that affect the rate of the krona are such as the flow between the imports and exports in Sweden, the inflation rate and the flow finances in the economy. The main supplier and distributer of the currency is Sveriges Riksbank, which is the central bank of Sweden. The notes are printed by a printing company of the bank, called Tumba Bruk. The coin is released in 5 denominations, the 1kr, 2kr, 5kr and 10kr. The other is the 50 ore coin which is the smallest of all coins. The exchange rate of the Swedish krona is enjoying prodigious stability compared to many other currencies in the World Bank. For instance, the exchange rate of the currency against the U.S. dollar is relatively stable, ranging between 7.5 and 9.2 over the past few years (Development, 2013).

Legal and physical infrastructure

For any institution or country to prosper in its engagements, rules and regulations form the basic start point. Rules and regulations determine the performance of these institutions. Sweden as a country, she has ensured that laws are implemented such laws that Sweden has drafted are those that prohibit certain activities that may bring fall of the economy (Kumar, Espling & Kumar, 2008). For instance, Sweden being a fully pledged member of the European Union, she is bound by the laws that are set at this level. Such laws as concerning the clearance of imports are remarkably helpful.

The main regulations include ensuring that all imported goods have commercial invoices and bill for lading. The addresses, names and other personal details of buyers and sellers must be included in the invoice. The dates and description as well as quantity of packages are also indicated in the invoice. Other factors such as price of product, delivery condition and the discounts allowed on the product are also included.

The laws in Sweden are extremely strict on licenses of operation and thus every trader must have a license. Wavers and reductions on selected items are good for the products that are socially significant. Value added tax is also majored in these laws of trade (Kumar et al., 2008). Sweden as a country has put in place factors that ensure these laws and many others are enforced fully. There are non-governmental and other legislative bodies that have been established to ensure that these laws are followed accordingly.

The courts are the top point of the regulation of trade activities. The courts of Sweden work together with the established and efficient police institution to ensure that those who break the law are vindicated accordingly. The police have quality, top class officers who do their work to investigate any shoddy deals and other activities that are illegal according to the law. The courts are independent and, as a result, can work independently and efficiently, ensuring that those who break the law pay for their actions. This has continually and efficiently ensured safety of investors and business people, growing the economy significantly.

The other factor that has seen the economy of the country take the next level is the physical infrastructure in place. The government of Sweden, from the beginning, realized that the driving factor of the economy is infrastructure. Consequently, the country has invested hugely in the modernization and the development of these institutions. Sweden boasts of exceptionally well developed and quality working railroads. The tracks of rail are not only constructed by the government, but they are also privately owned by some private investors. The rail network is widely distributed over the country, linking all the main towns and the industrial areas. The transport of the exceedingly heavy goods requires that there be effective and efficient systems for transport that do not affect the other infrastructures. The rail links are exceptionally fast and efficient as Sweden has quality modernized train systems.

The nation only has two neighbors directly bordering with her. The coast of the country is quite extensive. Moreover, through this coast, the country has direct links with many other nations across the world. Sweden has thus taken the initiative to invest in the water transport means. There are major developments of the ports and harbors. She has constructed quality terminals that have facilities that can handle remarkably large containers. Some of the best developed ports include Gaevle, Gotborg, Malmo, Sundsvall, Helsingborg, Kalmar and Stockholm among others. The government of Sweden has also invested in the freight industry and as a result it has… [END OF PREVIEW] . . . READ MORE

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