The Swedish economy is entirely built on imports and exports. Its major export commodities are; industrial machineries, paper products, textiles, furniture, automobiles, steel and iron products (World of Information, 356). Sweden has a highly skilled and technologically savvy labor force that is inventive and innovative, excellent external and internal communication that coordinates well with markets for its products, good climates for growth of forests which produces natural resources like timber. It’s also highly industrialized, technologically advanced and has good social infrastructures. These give the country a competitive advantage in the export industry across Europe. Most of Swedish exports are sold in Germany, U.K, Norway, Denmark, USA, France, Netherlands, Belgium and Finland (Scott Hacker, 80).
While in the import trade, the country imports primarily food products like coffee and tea, textiles, petroleum/petroleum products, consumer electronic, chemicals, semi-manufacturers and raw materials like steel and iron for industries, and motor vehicles(World of Information, 356). Scott Hacker (80) notes that the major reasons why countries like Germany, Norway, Denmark, Russia, and France among others export goods to Sweden are as follows; Sweden is a rich and stable consumer markets. Swedish consumers are normally open to trying new goods. Their purchasing power is also very strong. Besides having stable and strong powers to purchase, the major consumer of Sweden imports is the industrial sector. This is because most of the imports are raw materials or semi-manufactured goods needed by the local industries in the manufacturing processes. Last but not least, the Swedish trade policies are import-oriented. Sweden is among the few countries in Europe that have adapted policies that incorporate private sectors well with the government, and this has developed a positive attitude to suppliers and exporters from abroad.