Academic Research Paper on Sweden

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Section I

Geography and History of Sweden

Sweden is the fourth largest European country with a total area of 450,295 sq. kms. It is
physically located to the east of the Scandinavian Peninsula. Sweden slopes to the east and South
from Kjolen Mountains, bordering Norway with Kebnekaise as its highest point (about 2,123m).
Mountains and lakes characterize Northern Sweden while southern and eastern regions have
lowlands, with plains and fertile forestry valleys. The coastline has bays and inlets with several
islands like Gotland and Oland, which are the largest. Additionally, northern Sweden and
mountainous regions have snow during most parts of the year, with only 8% left for farming. The
country has a temperate climate in the south, with cold, cloudy winter and partly summer.
Northern Sweden is found in the Arctic Circle. The maritime offers milder climatic conditions to
the Southern region. Stockholm receives a mean annual rainfall of 22 mm, with July and
September receiving the highest amounts.
Between 11th and 12th centuries, Sweden was an integrated Christian Empire that was later to
include Finland. It was part of the Kalmar Union in 1937 before it collapsed because of endless
conflicts between Danes and Swedes in the 15th century. This collapse put Norway and Denmark

to one side with Finland and Sweden to the other. King Gustav Vasa was on the forefront
fighting for the independence of the state of Sweden, which formed the foundation of the current
Sweden. In 17th century, Sweden-Finland Union trounced Denmark, Poland and Russia, making
it a greater power. However, rival empires formed an alliance, which defeated the mighty
Sweden-Finland Union. In 1905, Sweden and Norway formed a union. It was during the
Agrarian Revolution that Swedens village farming changed to private based farming.
Nonetheless, this did not influence socio-economic status of locals, leading to massive
immigration to the US from 1860 to 1890. Sweden adopted major reforms in the 19th century,
including voting procedures and introduction of national military service. These reforms led to
the birth of three major political parties in the country. During the First and Second World Wars,
Sweden would maintain a neutral position, benefitting from the high demand of steel, matches
and ball bearings. In 1995, it joined the European Union (History 8).

The Political and Legal Structures

Sweden follows a constitutional monarchy as a Kingdom and a democratic parliamentary system
of governance. Swedish coalition parties form the government while the monarchy is a
hereditary structure. The majority leader in parliament is the head of government and the Prime
Minister, who appoints the cabinet. Parliament has the power to approve or reject a cabinet
(Unicameral Riksdag). Swedish government can be kicked out of office through a parliamentary
vote of no confidence. Her major political parties include Liberal Peoples Party, Social
Democrats, Moderates, Sweden Democrats, Greens, Center Party, Christian Democrats, and Left
Party (Political Structure 21).
Sweden has an independent Justice system, which maintains the countrys law and order.
According to the Legal Landscape, the constitution is the supreme law that defines the chain of
command and gives direction in handling adjudicative matters. Sweden has specialized courts,
which handle specific issues like property rights and labor issues. It also has customary laws.
Businesses operating in Sweden adhere to the countrys enterprise laws and European
Community regulations. The country also observes international laws and agreements, which
apply in the business world. Sweden has a legal framework that allows local and international
business to thrive. Foreign companies or individuals operating in Sweden operate through
subsidiaries or branches. Except for banking and insurance, most Swedish sectors do not require
an operating license for entrepreneurs. Forms of business ownership include Limited Liability
Company, corporation, limited partnership, or general partnership.

The Education, Health, and Culture

Sweden adopted a new education curriculum in 2011 for SAMIs, special schools, and high
Schools. The country offers free education except for nursery and higher education, where the
government gives partial funding. The government requires schools to integrate technology in
teaching, to enhance communication and make students to be innovative. This approach has had
great significance to all sectors of the countrys economy. For instance, through technology,
Sweden has clean environment, maintaining pace globally in environmental protection.

Swedens healthcare system is decentralized and the government funds the biggest percentage.
Its organization and management falls under three sections, which are national level, regional
level, and local level. Nationally, the Ministry of Health and Social Affairs is the regulator, sets,
and implements laws in the health sector. Regionally, county council offer financial and quality
control role in the health sector. Lastly, municipalities are in charge of the social welfare services
at the local level.
Sweden has a wide range of culinary options, like kebabs, Chinese cuisine, falfel, pizza and
hamburgers. Husmanskost is the countrys main meal, comprising of potatoes, hearty sauce and
meat. Sweden has freedom of religion, which is enshrined in the constitution. Thus, it encourages
religious pluralism. The Church of Sweden has a following of 85% of the population. It came
into being during Protestant Reforms. Roman Catholics and Muslims are also in Sweden.

Section II

The Demographics and Economy

By 2013, the population of Sweden was approximately 9.5 million people. The southern part of
the country has a higher population than the north. In 2012, Swedens economic growth stood at
0.77%, with up to 85 % of the population inhabiting urban centers. In 2010, the life expectancy
for men was 78.6 years and 83.3 for women. Sweden has a mortality rate of 2.75 per 1000. The
country has an ageing population, where the elderly outnumber young people. This is a threat to
the countrys economy, mainly with regard to sustainability of social welfare policies. In the next
five years, about 36% of the working population is set to retire. The government of Sweden has a
pension scheme for the aged and disabled persons, which threatens the economy with current
demographic patterns. Main natives in Sweden are Swedes, ethnic Finns, and Sami. Finns,
Danes, and Norwegians form majority immigrants.
Sweden has one of the best economies in Europe. Between 2000 and 2007, it registered a growth
rate of 2.8%. It has an export-based economy, anchored on availability of iron ores, hydropower
and timber. It has a stable manufacturing and service industry. However, the countrys economy
was affected by the 2007 global financial crisis. Because of its effective fiscal and recovery
strategies, Sweden experienced a growth rate of 3.4% between 2012 and 2014. Its leading
industries are motor vehicle, pharmaceutical, iron and steel, home equipment and appliances,
chemicals and telecommunication among others. It is a capitalist economy with a favorable
environment for equality. The private sector owns the biggest share of recourses in the country,
with a small percentage under state ownership. Exports account for approximately 50% of the
countrys GDP. In 2012, Sweden had a GDP of approximately US $525.7 billion with a per
capita income of US $44091.09.
Swedens main exports are vehicles, chemicals, machinery, iron, steel, paper products, pulp and
wood logs among others. On the other hand, the country imports petroleum and its product,
garments and foodstuffs. Members of the European Community are the leading trade partners
with Sweden in promoting import and export business. Swedish economy further faces major

challenges of unemployment, which stood at 8.4% in the year 2010. Another challenge is the
restriction of foreign investments, which affect specific sectors like pharmaceuticals and
alcoholics. Sweden also has high income tax of about 57%, which is among the highest all over
the world. The countrys central bank maintains monetary policies to tame inflation, which is at
2%. In 2010, the inflation was 1.2% because of high food and oil prices.

The Infrastructure, Technology, and Media

Sweden has excellent infrastructure, outshining other European Union members. With huge
investment with public funds, the country has ensured good road network, rails, harbors, water
pays, and airports. Because of seasonal climatic conditions, Sweden has to maintain its roads,
especially during winter. During this season, major highways are covered with ice and snow and
require de-icing and snowplowing respectively to make them passable. Additionally, vehicles
must have winter tires between March and December annually. For Sweden, railway transport is
pleasant and environmentally friendly. This is because its trains use hydro-generated power and
other clean energies. With this rail network, commuting in Sweden is simplified. Swedens
national carrier is SAS Scandinavian, which offers reliable access and link to the rest of the
world. It is easier to fly in Sweden because of the high competition in the Airline industry.
Sweden enjoys a large coastline with up to 50 public ports. Thus, approximately 95% of trade
transport depends on vessels.
Sweden also has an advanced and developed technology system in terms of mobile phones,
internet, lines and broadband connectivity. The country has made milestones in wireless
communication and microelectronics. Moreover, Ericson is the dominating player in the
telecommunication industry. Sweden has five leading TV channels, which are SVT1 and SVT2,
TV3, TV4, and Kanal 5. Because of Swedish digital broadcasting, there is stiff competition
towards satellite and terrestrial broadcasting. Due to hot summers and winters, Sweden has
quality and reliable building and construction practices, in the communication and transport
sectors. This has made Swedish construction companies to exert competition all over the world
(Transport, Communication, and the Internet 24). State-owned Swedish Radio Company is the
leading radio broadcaster, which owns P1, P2, P3, and P4 and several local stations.
Aftonbladetis is the countrys popular newspaper. It is owned by Schibsted and the trade Union
Confederation, Norwegian media conglomerate. Stiff competition is from expressen, under
Bonniers control. Other print media players include Sydsvenska Dagblade, .Dagens Nyheter,
and Svenska Dagbladet.

Section III

The Swedish Distribution and Retail Network

According to the Food, retail Industry profile, the country retail market has grown over the
years. Large-scale chains dominate the market and control about 50% of the industry. Because of
strong competition from large stores, the number of retailer outlets in Sweden has been on the
decline. To enhance efficiency, most retail chains in Sweden are centralizing purchases and

creating international alliance and expanding operations. The main retailers in the market are
Ahold, KF, and Axel Johnson.
The emergence of discount stores has also transformed the retail sector in Sweden, accounting
for about 13.5% market share. Previously, it was hard for foreign players to get into the market
because of its small size and complexity. With the emergence of discount stores, foreign players
are finding the market favorable. These include Dansk Supermarket and Lidl. The main target
markets in the capital city, southwestern and Stockholm. The ICA group is a major player in the
market venturing in food retailing wholesaling. It owns a chain of discount stores, superstores,
supermarkets and hypermarkets. The second largest player is KF Group, a cooperative chain,
owned by consumers with 500 retail stores countrywide. Axfood is also a discount store, which
thrives on its Willys brand, which brings together a series of chain stores. It further controls
Hemkop chain of supermarkets. The German Lidl is also a significant player in the market.
While discount stores have had negative effects on mid-retailers, it offers affordable brands to
consumers.
To import iron and steel from non-EU countries, one requires a license from Swedish
government, which is managed by the National Board of Trade. The Swedish Board of
Agriculture plays a major role in controlling production and selling animal products. The
National Food Administration clears companies or individuals wishing to venture in distribution
of foodstuffs. Importantly, companies must label all products in a language understandable by
the people of Sweden. They should also give specific details about the product, including the
ingredients and weight.

Works Cited
Sweden. Background Notes On Countries Of The World: Sweden(2012): 1. Business
Source Complete. Web. 30 Nov. 2013.
History. Sweden Country Review (2013): 7-8. Business Source Complete. Web. 30 Nov.
2013.
Political Structure. Country Report. Sweden 9 (2011): 21. Business Source Complete. Web.
30 Nov. 2013.
Legal Landscape. Sweden Country Profile (2012): 62-65. Business Source Complete. Web.

30 Nov. 2013.
Transport, Communications And The Internet. Country Profile. Sweden (2008): 2225. Business Source Complete. Web. 2 Dec. 2013.
Food Retail Industry Profile: Sweden. Food Retail Industry Profile: Sweden (2013): 128.Business Source Complete. Web. 2 Dec. 2013.
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