Chapter 2: Swedish trade and industry Flashcards
Describe the most important structural changes in the Swedish economy, from 1900 to today
In the 1900s, Sweden was an agricultural society and was poor. Sweden industrialized later, but due to not being involved in any world wars, Swedish industrial companies gained an advantage. This led to an increase in exports.
Approx. how large a part of Swedens GDP comes from the private service sector and how large a part comes from the manufacturing industry?
private service sector: ungefär 52%
manufacturing industry: ungefär 26%.
Explain the concept of value added
the difference between the revenues from the finished products and the costs of resources and the production of those same products
What do we mean when we say that the structure of Swedish industry can be depicted as an hourglass?
The “hourglass” in the structure of Sweden’s business sector refers to the fact that there are many people employed in small and large companies, while employment in medium-sized companies is lower.
What are the 3 largest sectors in the swedish industry, in terms of numbers of employees and value added?
Goods production, Business services , Distribution
What types are companies are included in the sector: extraction of raw material?
Mines, natural resources, public services
What types are companies are included in the sector: production of goods?
Goods-producing industry
What types are companies are included in the sector: built environment?
Construction and civil engineering, real estate activities
What types are companies are included in the sector: business services?
Consulting services, labor-intensive business services.
What types are companies are included in the sector: distribution?
Trade, transport.
What characterizes a typical company in the process industry? Give examples of 3 types of companies in the process industry.
paper mills, steelworks, and chemical industries. What characterizes a company in the process industry is large-scale and automated production. They are capital-intensive and sell their products on the global market.
What characterizes a typical company in the manufacturing industry? Give examples of 3 types of companies in the manufacturing industry.
- production of metal goods, machinery, cars.
- involves expertise in building large technical systems.
- Often labor-intensive and convergent -> a large number of components are reduced to fewer final products. There can be subcontractors acting as contract manufacturers.
What characterizes a typical company in the pharmaceutical industry?
Similar to manufacturing, but but developing new pharmaceuticals can take a long time. It involves many tests and approvals from regulatory authorities.
Describe some differences between the construction industry and the real estate industry
The construction industry involves the building of properties, as well as political decisions such as constructing tunnels and roads. The real estate industry involves managing properties once they are completed, renting them out, etc.
Many claim that we are today in a period of radical industrial transformation. What are the main driving forces behind this transformation?
The radical transformation is driven by digitalization, mobility, the internet, e-services, and more.
