The Swedish industry is well established in Brazil, not least seen on the Brazilian roads where a majority of trucks are supplied by Scania or Volvo and Ericsson and Electrolux are the Swedish companies that employ most people in Brazil.

Unlike the three other so-called BRIC countries - Russia, India and China - Brazil's importance for the Swedish economy has been given less attention. This has occurred despite the fact that Swedish companies have extensive operations in Brazil with over 30,000 employees in the country.

Market Recital is a major reason for the presence in Brazil, but the companies' facilities in the country has in recent years become an important export base for the Swedish industry. Moreover, integration between Swedish and Brazilian facilities has increased, allowing businesses to adapt more rapidly to changing conditions.

- Depending on how exchange rates, commodity prices or other conditions develop, businesses now dispose on the production between facilities in Sweden and Brazil.

There is also a new trend where more and more operations are performed in-house, indicating that the time with a gradually decreasing own refinement may have past, says Anders Rune, chief economist of engineering companies.

The total labor cost in Brazil is closer to the level in Western Europe than the level in China. The cost frame can in many cases be compared to Sweden if the costs of taxes, bureaucracy, and the purchase of components should be considered.

                                                                                  Cecilia Helland