More Swedish companies choose to locate abroad and the expansion will continue in the near future. Swedish companies often choose to establish in the East.
The Baltic States, China, India and Poland will remain to be the number one choice of establishment for Swedish companies.
Fifteen years ago, Sweden had approximately 10,000 employees in Swedish multinational corporations in China, India and Poland. In the current situation, there are over 100,000 employees in these countries, and it will probably increase in the near future. Today, there are over one million employees in Swedish companies around the world, which is proof of how foreign start-ups have increased over the years.
The U.S. and Western Europe have previously been the most interesting areas, but the countries in the East are very interesting for start-ups in the current situation. What attract the most are of course labor costs which are on completely different levels. At the same time, market growth is an important factor and also product demand. A higher growth and a greater demand mixed with lower labor costs obviously gives better odds for a successful foreign establishment.
If you compare Sweden's relations with other countries you can see a clear picture of why companies choose to expand. If the growth in China, India or Eastern Europe would decrease, then other markets would obviously become more attractive.
A few years ago, the Baltic States was a popular area for Swedish companies. The establishments in these countries are likely to accelerate in the near future if the exchange rate decreases. What many people talk about about right now is that we will see a devaluation of the currencies in the Baltic States, which would mean that the exchange rate drops very quickly.
It would be even cheaper for Swedish companies to establish production in these countries. This would entail faster start-ups on the market, because the main reason that companies expand abroad is cost related. The Baltic States also offer a proximity to Sweden, which has proven to be a significant, though not decisive, factor in foreign start-ups.
Cecilia Helland