The Swedish economy has experienced times of hardship as well as times of success and growth. The growth of the Swedish economy can be largely attributed to its efforts in globalization. From technological advances to international trade, domestic and foreign corporations alike have benefited from this shift towards globalization. Native and foreign workers, however, have had a difficult time adjusting to these changes throughout the decades. With high unemployment rates, low wages, and outsourcing, service workers have not experienced as many advantages from the economy. Large corporations based in Sweden have restructured their businesses to benefit the environment and continue the growth of the Swedish economy, though. It is because of these efforts that Sweden is so successful in the exports market.

Technology

Since the rise of ecommerce, products can be bought by consumers or businesses online with one click. Because of the introduction of this technology, international trade has had a similar restructuring. As a result, many domestic businesses in Sweden have reached markets that were not as easily accessible thirty years ago. These include the clothing and footwear industries, those of which exports grew at a rate of 2% versus the world market’s average of -4% in 2015 (Business Sweden Communications, 2017). With the major market share being leather footwear (“Footwear – Sweden | Statista Market Forecast”), this means that businesses like Swedish Hasbeens has an advantage over large foreign manufacturers. This is even more true because their shoes are made of vegetable leather (Hasbeens, 2015). Not only does this set them apart, but it also has allowed them to tap into a profitable niche market. H&M, a Sweden based clothing company that branched into over 4,000 companies worldwide, also experienced major revenue growth of over 300% in the last decade (Statista, 2018). Both of these companies, as well as countless others, benefited significantly from the limitless online shopping market.

Because of technological advances in information and communication, new business models have been rapidly adopted by internationally and domestically funded organizations. Current business models in Sweden emphasize sustainability and open communication, both of which have been popular topics in the recent decade. Volvo has been a leader in this shift of environmental consciousness in the last ten years, with their main focuses being social, economical, and environmental issues (The Local, 2018). International managers have continued their movement toward individualism and how they can better society as a whole, instead of only focusing on the market caps for their MNCs. This means that managers are carefully analyzing the negative effects of globalization in order to reduce the company’s carbon footprint.

Technology’s effect on outsourcing

The ease of technology promoted more outsourcing and as a result increased the unemployment rate of unskilled workers in Sweden. According Ulf Jakobsson, author of “The Globalisation of Swedish Economy” (2007), “The fraction of workers not employed among those without upper secondary school has increased from 61% in 2006 to 66% in 2016” (p.7). Since many manufacturing companies in the service industry need a multitude of workers to perform simple tasks, many companies choose to outsource the work to countries like India or China where labor comes at a lower price. According to a study by The Local (2014), Sweden’s average hourly labor cost of 40.1 Euros is the highest in the EU. The average Chinese factory worker, however, makes an equivalent of 1.20 Euros per hour (Kavoussi).  If an unskilled worker can complete the step in