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Pest Analysis

OF SWEDEN
Political
•Nation’s legislation is the Swedish Parliament (Riksdag)
•Sweden is generally a very safe country, with political stability
•Sweden has laws against corruption, and they are fully enforced
•Sweden does not allow monopolies, except for alcohol
• Sweden government holds a monopoly on the sale of alcohol, therefore they control
the retail aspect

Tax
• corporate tax levels are low (on normal terms; 28%)
Economic
•Sweden's economy is growing steadily 
Unemployment rate: 7.8% (April 2015)
◦ Sweden tries to prevent long-term unemployment by providing training to people
who need it
Inflation Rate
◦ 2016 inflation ranges from .1%-1.1%
Disposable Income
◦ Average household net disposable income: USD $28,859
◦ Less than the OECD average
◦ Top 20% of population earns 4x than the bottom 20%
Social
•Top 20% of population earns 4x than the bottom 20%
•Education
• Free schooling is offered to kids ages 7 to 16 years old
• Sweden offers tuition free college for students
• Most student will occur some fees
• On average college students graduate $19,000 in debt (2013)
•Swedes
• Free of exaggeration
• Do not accept rapid change
• Time controlled culture
• Straight forward communication
Technological
Sweden stands 1st in rankings of The Global Information technology report
of(2009-2010)
Sweden is leading in technology discoveries and innovation
Sweden is home to many popular companies like:
◦ IKEA
◦ Skype
◦ Spotify
◦H & M
◦ Volvo
Environmental
Sweden has over 47% of its energy resources in renewable resources
◦ Sweden’s goal is to reach 50% by 2020
◦ Sweden has one of the highest percentages among European Union
Sweden has low carbon dioxide emissions
Due to the renewable resources and low emissions, Sweden is considered the
“Most Sustainable Country in the World”
Legal
The Swedish Law Act (1992)
◦ applies to overseas companies functioning in some type of business in Sweden.
◦ The foreign branch's president must live within the European Economic Area
◦ Each and every business enterprise in Sweden are required to register at the Swedish
Companies Registration office
◦ Trademark must be registered in Sweden so legal protection can be obtained
◦ The president if not from the EEA, needs special permission from the Financial Supervision
Authority to set up a branch in Sweden
Incentives
◦ Swedish government offers incentives to business who set up in Sweden like:
◦ Loans
◦ Location and employment grates
◦ Low rent industrial parks
◦ Economic frees zones
Sweden
Sweden is a growing country with a stable government that is from
corruption
The economy is steadily growing with a low inflation unemployment rate
Swedes are generally nice, but do not accept change well
Higher level education in Sweden is affordable for most
Business regulations are moderate
Starting a business in Sweden would be highly advised if it is a technology
based business