ABSTRACT
Before considering FDI originating in Sweden, let us briefly review the main characteristics of the economy. Traditionally, Sweden has had a well trained and highly qualified work force, productive innovators and entrepreneurs, efficient authorities and a competitive infrastructure. Thus the country has fostered one of the world’s most advanced industrialized economies. Forests, iron ore and hydro power were key natural resources laying the foundations of industrialization. During the present century, Sweden has remained a significant exporter of raw materials and raw material-based products. Engineering products dominate overall exports, led by specialities such as motor vehicles, telecommunications, heavy industrial equipment and machinery. In recent years, strong growth has also been recorded in exports of pharmaceuticals. Labour-intensive products, such as textiles, advanced in the early stages of industrialization but diminished in the 1960s as competition increased in standardized products and Swedish wages became relatively high for low skilled workers.
