During 2003, Swedish exports to Central and South America were only 1,9% of the total Swedish exports; furthermore, Swedish imports during the same period to Central and South America were 1,1% of total Swedish imports. The figures show how Swedish trade with Latin American countries is very low. The only Latin American country that in 2003 made part of the main 30 Swedish trade partners was Mexico, in the 22nd position. Swedish exports to Mexico…
Contents
1 Background
1.1 Swedish Trade with Latin America
1.2 Swedish Direct Investment in Latin America
1.3 International Trade Theories
2 Problem Description
2.1 Research Questions
2.2 Purpose
2.3 Audience
3 Method
3.1 Data Collection
3.1.1 Qualitative Research
3.1.1.1 Interviews
3.1.2 Literature Study
4 Theoretical Background
4.1 The Internationalisation of the Company
4.1.1 The Product Life-Cycle Theory
4.1.2 The Establishment Chain
4.1.3 The Internalisation approach
4.1.4 The Eclectic Theory
4.1.5 The Network Approach
4.2 Foreign Direct Investment Theory
4.2.1 Horizontal Foreign Direct Investment
4.2.1.1 Transportation Costs
4.2.1.2 Internalization theory
4.2.1.3 Following Competitors
4.2.1.4 The Product Life Cycle
4.2.1.5 Location-Specific Advantages
4.2.1.6 Horizontal Foreign Direct Investment: A Decision Framework
4.2.2 Vertical Foreign Direct Investment
4.2.2.1 Market Power
4.2.2.2 Market Imperfections
4.3 Major Problems that Companies Face when Doing International Business
4.3.1 Financial Risk
4.3.2 Political Risk
4.3.3 Government Intervention
4.3.4 National Institutions and Resources
4.3.5 Cultural Diversity
4.3.5.1 Cross Cultural Management Theory
4.3.5.1.1 Hofstede’s Model
4.3.5.1.2 Trompenaar
4.3.5.2 Problems Relating Culture in International Business
4.3.5.2.1 Understanding of the Culture
4.3.5.2.2 Language and non-verbal Language
4.3.5.2.3 Gathering Information about the Culture
4.3.6 Transaction Costs Theory
5 Perception of the Problem by the Business Community
5.1 Interviewed Companies
5.1.1 MediTeam Dental AB
5.1.2 ReadSoft
5.1.3 Hörnell International AB-3M
5.1.4 Elof Hansson
5.1.5 AGA – Linde Technische Gase
5.1.6 Trelleborg AB
5.1.7 Åkers AB
5.1.8 Electrolux Group
5.1.9 ITT Flygt AB
5.2 Results
5.2.1 Market Potentiality
5.2.2 Main Obstacles
5.2.2.1 Distance
5.2.2.2 Cultural Differences
5.2.2.3 Language
5.2.2.4 Relations with the Customer
5.2.2.5 Other Problems
5.2.2.6 Development of Further Agreements among Governments
5.2.3 Evaluation and Availability of Information
5.2.3.1 Assistance of the Swedish Government
5.2.4 Complementary Aspects
6 Analysis of the Results
7 Conclusions
References
Appendix 1: Questionary
Author: Paola Apolinar
Source: Blekinge Institute of Technology
Download URL 2: Visit Now