The purpose of this case study is to describe the traditional Swedish model of industrial policy and FDI (foreign direct investment) policy, to discuss why the trade unions were so positive towards Swedish investment abroad, and to speculate about the reasons for the changes that have occurred, or are under way. In doing this, some of the channels through which governments and institutions influence the globalization of private firms are also illustrated. After an introduction, the second section of the chapter discusses the role of inward and outward investment for the Swedish economy. The third section looks at Swedish industrial policy, and its role in the globalization of Swedish industry. The fourth section focuses on the Swedish labour movement's (trade unions’) attitudes towards FDI, and the fifth concludes the chapter by discussing why the Swedish model of FDI policy began to fade away in the late 1980s.
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