tiểu luận analysis of political and economic environment economic development of sweden

EVALUATE THE DEGREE OF POLITICAL FREEDOM AND ECONOMIC FREEDOM OF SWEDEN BASED ON FREEDOM IN THE WORLD .... International Business_Group 1_ 47K06.1 2 FOREWORD Lately, Sweden is one of th

THE UNIVERSITY OF DANANG UNIVERSITY OF ECONOMICS

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University of Economics

GROUP ASSIGNMENT REPORT

Class: International Business

Topic: ANALYSIS OF POLITICAL AND ECONOMIC ENVIRONMENT, ECONOMIC

DEVELOPMENT OF SWEDEN

Class: 47K06.1

Group: 01 Members: Bui Thi Ha Giang

Huynh Thi Hong Tran Phuong Linh Nguyen Doan Mai Tran Tran Anh Thu Instructor: MSc Dinh Tran Thanh My

Da Nang, 11/2022

TABLE OF CONTENTS

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International Business_Group I_ 47K06.1

FOREWORD Lately, Sweden is one of the countries that has a top economic development at the GDP front level of the 7th Army As a nation with a mixture economy which drives hard in export direction, Swedish always builds to welfare and focus on high tech industry This country’s wallet like "822220," 822-22, start-up developers are reporting live from foreign water and increases that number of startup in the second-rate in-world reports of an investment investment firm in Atomico's unprecedented five centuries’high-end It's a lot of work, and it’s working for European countries In that context, a happy country model (NNPL) of Sweden is formed in years of the XX century This is also the key to the Swedish country as the NNPL Swedish tax levels are high, people are entitled to high welfare and have a lot of time off-this-this sounds like maybe eight 22220 The high income tax lowers the revenues of business revenues and reduces the motivation to the people of new companies However, it's not what it is The merger and economic development (OECD), the highest Swedish style in the countries that develop the ability to recognize opportunity About 65% Sweden at the age of 18 - 64 thinks there’s a good chance to open a company where they live, compared to 47%an American group of thought That way, from the years of 1990, the speed

of new companies born in Sweden has increased rapidly I can tell you it’s an environmental environment 822s to invest in from foreign investors, investing in Sweden not only access to

an active market, but also approached with the largest commercial market in the world's largest commercial investors with 28 and the largest Scan50-million-million-million-million- year-year-market (including Swedish, Denmark, Nauy, Finland) is often considered the first person in the acceptance and making new technologies and form new navigational tendencies

So the contents of the report down here will help us figure out the level of economic freedom, politics and the benefit, the risk of the contract in order to perform the international business

here

International Business_Group I_ 47K06.1

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PART 1 THE POLITICALECON Our Computer

1.1 Analysis Of The Political System

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L Government: Constitutional Monarchy

L] The King is the head of state, but his rote is uwuuicu w ccicuuma anu 1CDLCSCHLALI VC

functions, and the King does not have any formal political power, according to the 1974 Government Document

L The executive apparatus includes the central government and local governments

L The government of Sweden (Swedish: Regeringen) has an executive role, consisting

of a prime minister — appointed or dismissed by the Riksdag President or the Speaker of the National Assembly (based on a vote by members of the Riksdag) — and ministers (Swedish: Statsrad), appointed or dismissed at the discretion of the prime minister The government is the supreme executive body and is responsible for all its actions before the National Assembly

L The current government of four centre-right parties (Moderate Party, Liberal People’s Party, Center Party and Christian Democratic Party) has continued to form a right-wing

coalition known as the Swedish Union

L Sweden is a parliamentary democracy, where power belongs to the people The National Assembly represents the people and has legislative power The government implements the resolutions and decisions of the National Assembly and submits new bills or amends existing laws

L Parliament consists of 349 elected representatives basis proportional representation for

a four-year term

L The National Assembly currently has 16 specialized committees, in charge of issues

related to the Constitution, budget, finance, taxation and other key issues of ministerial-level

agencies, which is the highest legislative body through legislation and policy decisions To be able to run for the National Assembly, a delegate must meet certain criteria and be recommended by a political party

1.2 Analysis Of The Economic System

L The Swedish economy is a mixed economy advanced, towards high technology, and a comprehensive welfare social

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L Sweden is one of the 7th largest countries in the world in terms of GDP (gross domestic product) per capita and its citizens enjoy a very high standard of living

L Structure, the Swedish economy is characterized by a large manufacturing sector, knowledge concentration and export orientation; business service industries are growing, but the scale is still relatively small; and a large public service industry by international standards Large organizations, both in manufacturing and in services, dominate the Swedish economy, with medium and high-tech manufacturing sectors accounting for about 9.9% of

total GDP

LI Economic structure: Services (71.6% GDP) - Industry (26.7% GDP) - Agriculture

(1.6% GDP)

L] The main industries are automobile manufacturing, telecommunications,

pharmaceuticals and forestry

L A well-developed resource extraction industry (such as forests, iron ore and hydroelectricity)

L Engineering sector Swedens accounts for 50% of output and exports, while telecommunications, the automotive industry and other industries Medicine is also very important

1.3 Analysis Of The Legal System

L Law system Civil, influenced by customs

L Laws can be drafted by the Government or by members of the Riksdag — the Parliament The basic statutes can only be changed if consensus is reached by the members of the Riksdag

L The legal system has four basic statutes (Swedish: grundlagar) that combine to form the country’s constitution, including: Acts of government (Swedish: Regeringsformen), Acts

of Succession (Swedish: Successionsordningen), Act on Freedom of the Press (Swedish:

Tryckfrihetsförordnngen), Basic Law on Freedom of Speech (Swedish: Yttrandefrihetsgrundlagen) The Freedom of the Press Law is one of the fundamental laws of Sweden that ensures the public's right to access information for the activities of Parliament, the Government and public authorities whenever needed

L Swedens judiciary is completely independent of Parliament, the government and public administrations The role of legal review of the law is not performed by the courts;

International Business_Group I_ 47K06.1

Instead, the Law Council provides non-binding opinions on legality The court is not bound

by legal precedent, although it is influential

L Sweden accepts the mandatory ICJ (International Court of Justice) law, but with

reservations

International Business_Group I_ 47K06.1

PART 2 EVALUATE THE DEGREE OF POLITICAL FREEDOM AND ECONOMIC FREEDOM OF SWEDEN BASED ON FREEDOM IN THE WORLD

2.1 Introduction to Freedom House and Freedom in the World report

Freedom House is an NGO, largely funded by the US government and headquartered in Washington D.C The organization was founded with the purpose of conducting research in support of democracy, political freedom and human rights Freedom House was founded in October 1941, with American politician Wendell Willkie and current president's wife Eleanor Roosevelt as its first presidents

Since 1972, the organization has published an annual report entitled “Freedom in the World” This is a survey that measures the levels of civil liberties and political rights in every country and significant disputed and involved territory in the world Through Freedom in the World, Freedom House is able to assess people's access to political rights and civil liberties in

210 countries and territories

2.2 Assessment of Sweden's political level

Sweden is a constitutional monarchy with free and fair elections and a strong multi-party system King Carl XVI Gustaf has been head of state since 1973, but his role is limited to ceremonial and representative functions According to the 1974 Government Document, the king does not have any any official political power In Sweden, power belongs to the people The National Assembly represents the people and has legislative power The government implements the resolutions and decisions of the National Assembly and submits new bills or amends existing laws

Sweden practices Western-style democracy, political parties compete fiercely with each other, the popular vote decides which party gets to the political arena to take power, the party's survival on a global scale to a large extent also depend

*Assess The Degree Of Political Freedom

L Concept: Political freedom is the non-interference with the sovereignty of each individual by oppressing or agitating that individual The people of a free society must have full rights in their own communities and personal lives The opposite of a politically free society is a totalitarian society, a society that minimizes political freedom in order to impose all actions of its people

To be able to assess the political level of a country, it depends on the country's aggregate political rights score on a scale of 0-40 and the composite civil liberties score on a scale of

0 - 60

L1 Sweden's degree of freedom in 2022 according to Freedom House's report:

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Political interests 40/40

Civil liberties 60/60

— Conclusion: Sweden's free score: 100/100

Status: Free

L About political interests: The Swedish Social Democratic Party is the largest and oldest democratic party in Sweden Formed starting in 1917, the Party has played a dominant role in Swedish politics since 1917, a time when social democrats were asserting their strength and wing revolutionaries describe forming their own party Since 1932, most of the governments in power in Sweden have been governed by the Social Democratic Party In the general elections since World War II so far, right-wing parties have only won enough seats in the National Assembly five times to form a government Here, the political choices of the general public are not governed by actors who are not democratically accountable Different segments of the population (including ethnicity, race, religion, gender, LGBT+ and other related groups) have full political rights and equal voting opportunities

L Civil liberties: In Sweden, civil liberties are guaranteed such as: freedom of speech and belief, rights of association and organization, the rule of law, and individual autonomy and individual rights

Sweden has continuously expanded the welfare state by increasing taxes, thereby helping the Swedish economy to become one of the fastest growing economies A series of social reforms carried out in succession has made Sweden one of the most egalitarian and developed countries on Earth Swedes enjoy a very high standard of living, the quality of life of the people here is always first in the world Today, Sweden consistently ranks first in national rankings for health, education and human development

2.3 Assess The Degree Of Economic Freedom

The Economic Freedom Index measures ten components of economic freedom, grouped into four broad categories or pillars of economic freedom: The rule of law (property rights, freedom from corruption); Limited government (financial freedom, government spending); Management efficiency (business freedom, labor freedom, monetary freedom); and Open

Market (free trade, free investment, financial freedom) Each of these four major freedoms is

individually scored on a scale of 0 to 100

L Rule of law (property rights, freedom from corruption): From 1995 to 2022, Sweden's tule of law index has always been at the top of the global rankings In 2022, property rights ranked 7th and freedom from corruption ranked 5th in the ranking

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sa na _ Lal

L Limited government (financial freedom, government spending): These two indexes have significant changes in 2022, especially the financial freedom index increases from 44 points (2021) to 96 points (2022) From there we see the increasing burden of government imposing including direct taxes on individuals and corporations and the total amount of tax

revenue as a share of GDP

2015 2017 2021

LI Management efficiency (business freedom, labor freedom, monetary freedom):

Sweden's business freedom index is at a high level compared to the world average, but it is on

a downward trend in the past few years: 91 points (2017) and 85 points (2022) as the country increasingly regulates the management process In contrast, the labor and monetary freedom indexes have been on a strong upward trend in recent years

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LI Open market (free trade, investment freedom, financial freedom): Sweden's financial

freedom index has been unchanged over recent years, showing that the level of government intervention has always remained at a low level high (80 points) in the financial sector Leading to a steady decrease in the index of trade and investment freedom During the period 2015-2022 It can be seen that this country is increasing barriers in international trade and

services, and restrictions on domestic and cross-border investment activities However, the

scores of these two indexes are still high compared to the rankings of countries

— Sweden is a mixed economy, its level of economic freedom is always at the top of the global rankings of the economic freedom index Although there is still government

intervention in economic activities, the level of intervention has remained constant in recent

years From 1955 to 2022, the average value of the economic freedom index of Sweden is 70 index points with a minimum of 61 index points in 1995 and a maximum of 78 index points in

2022 The latest value of 78 points in 2022 is 18 points higher than the world average is 60 index points and ranks 12th in the global rankings in 2022

International Business_Group I_ 47K06.1