Choice of country as host to foreign direct investment by multinational corporations: three case studies from Sweden

Abstract: Foreign investors being present on the global investment scene are
constantly evaluating the attractiveness of different possible host
countries. In the past decade, Sweden has been one of the leading
attractors of foreign direct investments. This fact clearly demonstrates
the country’s attractiveness on the global investment scene, where foreign
investors are constantly seeking new products, markets, and technologies.

Due to the quick growth in the information technology industry within
Sweden during the late nineties we found it interesting to investigate what
factors influenced multinational companies to establish operations in
Sweden, instead of any other country.

To be able to finish the thesis within the time frame given we had to
narrow down the purpose of the thesis to four research questions. These
research questions covered the parts of human resources, clusters,
proximity to international markets and the level of research and
development within the nation. When collecting the primary data we
conducted interviews with Yokogawa, Hutchison Whampoa / 3 and RSA Security,
all situated in the Stockholm region. One major conclusion drawn in this
thesis is the importance of available, skilled labor when attracting inward
foreign direct investments. Furthermore, we conclude that the existence and
glow surrounding Nokia and Ericsson was a very important factor when the
case study companies in this thesis chose to establish themselves on the
Swedish market.