Your paper will explore at least two tactical entry options. As an example, you may decide to conduct a direct investment in a country and export goods (products) to that country. You will discuss the...

DEMOGRAPHICS
Population structure in 2010
Population in Sweden has increased to 9.42 million in 2010, from 8.90 million in 2000
growing at ~0.6% CAGR over the period. The younger population (0 to 14 years) accounts
for ~16.6% of the total population while persons in the working age group (15 to 64 years
old) and the older persons (65 years and above) accounted for ~65.3 % and 17.8 %
espectively of the total population in 2010.
Chart 1: Swedish population stats Chart 2: Swedish population structure


Source: EuroStat and IMF
The median age of Sweden’s population was 40.7 years in 2010. This implies that half of the
Swedish population were older than 40.7 years of age while the other half was less than 40.7
years. According to the World Bank the rural population in Sweden is estimated at
approximately 1.4 million which is ~15% of the total Swedish population.
Income structure in 2010
1

An average person in Sweden earns approximately USD 26,633 a year which approximately
19% more than the OECD average of USD 22,387 a year. Further approximately 73% of
people in the working age group (15-64) are employed in paid job.

1
How’s Life?, http:
www.oecdbetterlifeindex.org/countries/sweden/
0.0%
0.2%
0.4%
0.6%
0.8%
1.0%
8.6
8.8
9.0
9.2
9.4
9.6
2000 01 02 03 04 05 06 07 08 09 10
Population (mn) % Growth
16.60%
65.30%
18.10%
0-14 years 15-64 years 65 years and above
Politics
Government stability
2

Since March 2012, when Stefan Löfven became the leader of social democratic party,
political situation in Sweden has improved for good. Since the time he took charge of the
office, headlines relating to infighting and looming political instability/disaster have
disappeared. Though the cu
ent government has not been that successful in doing things
ight every time, but they have successful avoided doing the wrong things. With supportive
policies in place, the government has ensured that the middle income class of Sweden has
more money to spend on. This is highly suitable for a healthy business environment.
Economic freedom
3

According to the economic freedom index Sweden is ranked 21
st
on the list with an aggregate
score of 71.6. This data clearly shows that starting a new venture in Sweden is not daunting
task. However, the higher tax rates for corporate is a major dampening factor.
Openness to Foreign Direct Investment (FDI)
4

With its stable political environment, and business freedom, Sweden has remained as a major
destination of FDI. There are many multinationals in the country with foreign routes. Sweden
has so far seen massive foreign investment across sectors, including pharmaceuticals and
automobiles. According to UNCTAD, FDI in Sweden was evaluated at approximately USD
350 billion in 2010.

2
Playing it safe, http:
www.policy-network.net/pno_detail.aspx?ID=4177&title=Playing+it+safe

3
Economic freedom index, 2012, https:
thf_media.s3.amazonaws.com/index/pdf/2012/Index2012-
Highlights.pdf
4
Sweden’s Position In The Global Economy, http:
entreprenorskapsforum.se/wp-
content/uploads/2012/05/GloFo_Ketels2012_web.pdf
http:
www.policy-network.net/pno_detail.aspx?ID=4177&title=Playing+it+safe
https:
thf_media.s3.amazonaws.com/index/pdf/2012/Index2012-Highlights.pdf
https:
thf_media.s3.amazonaws.com/index/pdf/2012/Index2012-Highlights.pdf
http:
entreprenorskapsforum.se/wp-content/uploads/2012/05/GloFo_Ketels2012_web.pdf
http:
entreprenorskapsforum.se/wp-content/uploads/2012/05/GloFo_Ketels2012_web.pdf
Legal system
The judicial system in Sweden is efficient, and operates in an impartial and independent
manner. It aims at providing justice to its law abiding citizens and corporate for a smooth
functioning of the entire economy. According to the AMB country risk report, the legal
system in the country is amongst the best.
Cu
ency convertibility
5,6

Swedish Krona is a minor cu
ency, and it possesses complete convertibility. Swedish Krona
can be easily converted to the major cu
encies and into commodities such as oil and gold.
However, the only problem will be when the transaction amount if very large such as in
excess of USD 50 million.
Physical...