Introduction to the Economics Econ 100 Section 1 Group 2 Sweden Introduction to the Economics Econ 100 Section 1 Group 2

Introduction to Sweden Sweden is a country in North Europe … Sweden became an independent state in the 11th century. member of the European Union. The country is a parliamentary democratic monarchy. Personal income tax : 35.6% & GDP :$25985.33 per person

Early Industrial Development A slow starter in the development process Economic development in the rest of Europe

The 1970s and 80s negative : domestic market is relatively small The 1973 oil crisis and the subsequent structural problem

The 1970s and 80s Positive: All did fairly well ! chemical plastics electronics car industries All did fairly well !

Nowadays (20th century ) a mixed system of high-tech capitalism welfare benefits modern distribution system skilled labor force

Composition : Agriculture : 2% in GDP Product : Barley,wheat,sugar beets,meat,milk Labor force: 2% Industries : -29% in GDP -Product:iron and steel, precision equipment,wood pulp and paper products,processed foods, motor vehicles -Labor force: 24%

Services : -69% in GDP -Labor force : 74% (2000est) Other : -Unemployment Rate : 4.9 % (2003est) -Labor force : 4.449 million (2003est)

Import : -Commodities : machinery, petroleum and petroleum products, chemicals, motor vehicles, iron and steel, foodstuffs , clothing, -Total of import : $83.27 billion f.o.b. (2003est) -Partners :Germany 18.7 % Denmark 9% UK 8% Norway 8% Netherlands 6.8% Finland 5.6% France 5.5% Belgium 4.2% (2003)

Exports : -Commodities : machinery , motor vehicles , paper products, pulp and wood, iron and steels products, chemical -Total of exports : $ 102.8 billion f.o.b. (2003est) -Partners : US 11.5 % Germany 10% Norway 8.4% UK 7.8% Denmark 6.4% Finland 5.7% Netherlands 4.9% France 4.9% Belgium 4.5 % (2003est)

Major Company in Sweden -> IKEA -> Ericsson

What is IKEA? Swedish home furnishing retailer ,Ingvar Kamprad 202 large stores in 32 countries Most large stores are throughout Europe, the rest are in the US, Canada, Asia and Australia. Product : business idea is to offer a wide range of home furnishings with good design and function at prices so low.

All IKEA stores are franchisees There are 202 IKEA stores in 32 countries. Of these, 180 stores belong to the IKEA Group. The remaining 22 stores are owned and run by franchisees outside the IKEA Group. IKEA was named one of the 100 Best Companies for Working Mothers in 2004 by Working Mothers magazine.

Figures turnover for the IKEA group Sales for the IKEA Group for the financial year 2004 (1 September 2003 - 31 August 2004) totaled 12.8 billion euro (15.5 billion USD).

Charts sales by region Asia 3 % North America 16 % Europe 66 % purchasing by region North America 3% Asia 3 % Europe 66 %

Workers co-workers by region Asia + Australia 3,000 North America 13,000 Europe 68,000 The IKEA group employs a total of 84,000 co-workers in 44 countries. co-workers by function Range, purchasing/trading, wholesale and others: 8,000 Industrial production: 11,000 Retail: 65,000

Top five sales countries Top five sales countries Germany 20% United Kingdom 12% USA 11% France 9% Sweden 8%

Top five purchasing countries Top five purchasing countries China 19% Poland 12% Sweden 8% Italy 7% Germany 6%

Ericsson What is Ericsson?

What is Ericsson? Swedish telecommunications equipment manufacturer, founded in 1876. largest supplier of mobile systems in the world Today it presents in more than 140 countries. Its headquarters are located in Stockholm, Sweden. In 2004, Ericsson is has been given a fresh start in the form of a joint venture with Sony called Sony Ericsson.

Products and Services Ericsson provides communication networks, enabling everything from traditional phone calls to corporate data links, Internet communications and mobile phone services. Its products range stretches from the latest mobile handsets to broadband Internet access devices and network routers.

Notable products Sony Ericsson t68 -- first Ericsson mobile phone with color display. Small and light, it was probably best phone of its time.

Swedish Government Enterprises

Vattenfall Literally “Waterfall” A Sweden energy company One of the leading energy producers in Northern Europe Wholly owned by the state of Sweden About 8000 employees

Services Provided By Vattenfall Focus on generation, distribution and sales of electricity and heat Offer private customers telephony (more than 100000 customers Provide customized energy solution and consulting and contracting services

Figures about Vattenfall About 50% of Sweden’s electricity production About 1.3 million customers in the industrial and household sectors in Nordic countries (20% of the Nordic electricity market)

END