International business

Transcription

1 International business Foreign owned enterprises 1998 Figure 1 Number of employees in foreign owned enterprises and as share of the total business sector Employees Per cent Number of employees Share of the business sector (%) S 2001:002

2 1 Foreign owned enterprises 1998 Contents Table of contents 1 List of tables 2 Summary 3 Results of survey 4 Tables 8 Facts on survey 24 List of activities 26 OFFICIAL STATISTICS IN SWEDEN Swedish Institute for Growth Policy Studies Statistics Sweden Box 574, S STOCKHOLM, SWEDEN Structural Business Statistics Facsimile S ÖREBRO, SWEDEN info.sthlm@itps.nu Facsimile Contact: Anne-Christine Strandell, phone Contact: Cecilia Hertzman, phone , Kristina Ekman, phone ITPS Statistics ISSN X Translation: Owen Winrow Publisher: Sture Öberg, ITPS

3 2 List of tables Table 1 Table 2 Employees in foreign owned enterprises by industry and country of origin 1998 Foreign owned enterprises and employees by country of origin 1998, 1997 and 1990 Table 3 Foreign owned enterprises by industry 1998 Table 4A Foreign owned enterprises and employees by industry 1998 Table 4B Foreign owned enterprises and employees by industry 1997 Table 4C Foreign owned enterprises and employees by industry 1990 Table 5 Table 6 Table 7 Table 8 Table 9 Table 10 Table 11 Foreign owned enterprises and employees 1998 by industry, less aggregated than table 4A Foreign owned enterprises and employees by size of enterprise 1998, 1997 and 1990 Employees in foreign owned enterprises by size of enterprise and industry 1998 Employees in foreign owned enterprises by county and municipality in Sweden and by country of origin1998 Employees in foreign owned enterprises by county and municipality in Sweden and by industry 1998 Establishments in foreign owned enterprises by county and municipality in Sweden 1998 Foreign owned enterprises and employees by county and municipality 1998, 1997 and 1990

4 3 Summary At the end of 1998 there were foreign owned enterprises in Sweden that had employees. The foreign owned enterprises accounted for about 15 per cent of the total employment in the business sector. In 1998, employees were working in enterprises owned by the EU-countries. USA is still the largest country of origin with employees. Finland is now the second largest country of origin, followed by Switzerland, the Netherlands, the United Kingdom and Norway. About 50 per cent of the increase in number of employees ( out of ) in foreign owned enterprises between 1997 and 1998 took place in the service sector. Half of the total number of employees in foreign owned enterprises, employees, were employed in the mining, quarrying and manufacturing industries, and were employed in service industries. In the mining, quarrying and manufacturing industries, foreign owned enterprises account for 22 per cent of the total number of employees in these industries, whereas in service industries they account for 13 per cent. Nearly 60 per cent of the employees were working in the three counties where the largest cities in Sweden are situated. The county most dependent on foreign owned enterprises is Västmanland county, where 26 per cent of the total number of employees in the business sector work in foreign owned enterprises. 64 per cent of the employees in foreign owned enterprises work in enterprises that can be considered large (more than 250 employees) 10 per cent of the employees work in small enterprises (less than 50 employees). This report provides data on foreign owned enterprises in Sweden. A foreign owned enterprise is defined as an enterprise where foreign owner have voting right exceeding 50 per cent. The total number of employees in foreign owned enterprises is affected both by purchases and sales of enterprises and by the development whitin the enterprise. In this survey Asea Brown Boveri s (ABB) business activity in Sweden is defined as a foreign owned enterprise, since the business activity is controlled by the parent company in Switzerland (which in turn is owned to 50 per cent by ABB Norden Holding AB). In previous published data on foreign owned enterprises, data for SAS (Scandinavian Airlines) have been accounted as Danish. From 1996, the SAS data have been divided between Norway, Denmark and Sweden. It means that only 2/3 of SAS are seen as foreign owned.

5 4 Results of Survey Figure 2 Mode of market entry Large increase in number of foreign-owned enterprises The number of enterprises in which majority ownership is held by foreign investors continued to increase in 1998 and now stands at enterprises, a net increase of 266 compared with Of the foreign-owned enterprises, 742 were new enterprises while 476 disappeared from the survey, either because of a change in ownership structure or because they were no longer active. The net increase of new foreign-owned enterprises between was considerably smaller, i.e. 74 new enterprises. The number of employees working in foreign-owned enterprises also grew during The increase in employment was individuals. In total, persons were employed in foreign-owned companies. The share of employment by foreign-owned enterprises in relation to total employment in Sweden also continued to increase and stood at 15 per cent in This share has doubled since 1980 (see figure 1). Figure 1 Number of employees in foreign owned enterprises and by share of the business sector Employees Per cent Number of employees Share of the business sector (%) Acquisitions dominate In the register, 53 per cent of the enterprises have become foreign-owned via acquisitions, making this the most common mode of market entry. The second most common is via greenfield investment (22 per cent - see figure 2). Of the new entries to this survey, 31 per cent became foreignowned via acquisition and 15 per cent via greenfield investment. 50 per cent of the new entrants to the survey did not reply to this question. Ownership of foreign-owned enterprises still dominated by EU-countries EU-countries accounted for 58 per cent of employment in foreign-owned enterprises. At the end of 1998 there were employees in enterprises where majority ownership was in the hands of one of the 15 EU-countries No answer 18% Other 3% Greenfield investment 22% Merger 4% Acquisition 53% Definition of a foreign-owned enterprise In this survey an enterprise is defined as foreign-owned if a foreign owner holds more than half of the voting rights of the enterprise in question. If an enterprise belongs to a Swedish enterprise group where the parent company is foreign-owned this enterprise is also counted as foreign-owned. If there is a chain of ownership in an enterprise group, it is the ultimate owner in this chain, i.e. the origin of the parent company that is not controlled by any other, that determines the country to which all firms in the Swedish enterprise group belong. The nationality of a foreign-owned enterprise in Sweden depends thus on the country of origin of the ultimate benificiary owner. (excluding Sweden), up from in Enterprises with majority ownership in Finland and Denmark accounted for 23 per cent of employment in foreign-owned enterprises while non-nordic countries accounted for the remaining 35 per cent. Finland the second largest country of origin As far as the European Union is concerned, Finland is currently the largest country of origin for foreign-owned enterprises in Sweden, having taken over first place from the Netherlands (in 1998, employees in Finnish enterprises, employees in Dutch enterprises). Finland is not only the country of origin that has increased the most among EU-countries, but also the country (for the second year running) that has increased the most in total. The number of employees in Finnishowned enterprises increased by 33 per cent compared with 1997, making Finland the second largest country of origin after the USA. The increase to a large degree can be explained by the merger between two paper and pulp enterprise groups Sweden s Stora Kopperbergs Bergslags AB and Finland s ENSO OY. The Nordic influence has also increased somewhat since the last survey in per cent of employment in foreign-owned enterprises were from the Nordic countries. However, this figure is lower than the 34 per cent share of all employment in all foreignowned enterprises in 1990.

6 5 Foreign ownership concentrated to a small number of countries Foreign ownership of enterprises in Sweden is concentrated to only a few countries. The nine largest countries of origin account for 95 per cent of total employment in all foreign-owned enterprises, which is the same as in the previous two years (see figure 3). In 1998, the USA was still the largest country of origin with employees. The share of the number of employees in enterprises owned by American investors has thus continued to increase. In second place comes Finland, which has overtaken both the Netherlands and Switzerland. Finnish-owned enterprises employed persons in In third place was Switzerland with employees and in fourth the Netherlands with The share of employment in both these countries has decreased somewhat since After the countries mentioned above follow, in order: the United Kingdom, Norway, Denmark, France and Germany. Finland saw the largest increase in employment, with new employees (see figure 4). After Finland followed the USA (approx ) and France and Norway (with increases of around employees each). Employment largest in service sector In 1998, the service sector employed individuals, an increase of employees. Thus, of the total increase in employment in foreign-owned enterprises, the service sector accounted for just over half. Of total employment in foreign-owned enterprises around half were employed in the manufacturing sector in the mining, quarrying and manufacturing industry there were employees. The remaining employees in foreignowned enterprises were associated mainly with the construction industry. Figure 3 Foreign owned enterpises 1998, 1997 and 1990 by country of origin Number of enterprises USA Netherlands Norway UK Finland Germany Denmark Switzerland France Japan Other Figure 4 Employees in foreign owned enterpises 1998, 1997 and 1990 by country of origin Of foreign-owned enterprises 72 per cent belonged to the service sector and 23 per cent to the mining, quarrying and manufacturing industry, which was unchanged from the previous year. Most of the foreign-owned enterprises (1 224 enterprises) were in wholesale trading. The group of enterprises in the service sector that employed the most persons were those associated with wholesale trading ( employees). Research and development and other business activities as well as transports followed this industry. Number of employees USA Finland Switzerland Netherlands UK Norway Denmark France Germany Japan Other In the manufacturing industry most employees were involved in the manufacture of fabricated metal products, machinery and equipment ( employees). As in 1997, machinery, which is part of this industry, was the largest employer with employees (an increase of 104 persons). Thereafter followed chemicals and petroleum products, rubber and plastic industries with

7 6 employees. The electrical and optical equipment industry employed persons. The industry that has grown the most since 1997 is the pulp and paper industry where the number of employees has increased by persons. The employees in foreign-owned enterprises in the service sector in 1998 accounted for around 13 per cent of total employment in the service sector in Sweden. This is an increase of 2 per cent on the previous year. The largest share of employment by foreign-owned enterprises was in the wholesale trading industry (27 per cent). Within wholesale trading, foreign enterprises dominated employment in fuel trading (78 per cent of all employment) and wholesale of electrical and optical equipment (59 per cent of all employment). After wholesale trading followed data consultancy, where 20 per cent of all employees were employed by foreign-owned enterprises, research and development and other business activities (16 per cent) and hotels and restaurants (15 per cent). The smallest share was in real estate, with only 1 per cent of employment in foreign owned enterprises in relation to total employment in the service sector. In the mining, quarrying and manufacturing industry there were employees working for foreignowned enterprises, which accounts for 22 per cent of total employment in this sector. Chemicals and petroleum products, rubber and plastic industries had the largest share of employment in foreign-owned enterprises. In this industry 45 per cent of all employees worked for foreign-owned enterprises. In the same industry foreign-owned enterprises dominated employment within the manufacture of refined petroleum products and the manufacture of basic chemicals (91 per cent and 64 per cent, respectively, of employment in each industry). Other areas where there was considerable foreign influence were in the manufacture of other non-metallic mineral products (40 per cent), the manufacture of machinery (31 per cent) and the basic metal industry (30 per cent). The least share was in the manufacture of fabricated metal products except machinery and equipment, where only 6 per cent were employed by foreign-owned enterprises. The countries of origin that had the greatest presence in manufacturing activities were Austria and Italy with 89 per cent and 67 per cent, respectively. Other countries of origin with considerable manufacturing activities were Finland, Norway, the Netherlands and Belgium/ Luxembourg. Countries with a low level of activity in the manufacturing industry were Japan and Denmark (25 per cent and 26 per cent, respectively) as well as France (29 per cent). Japanese-owned enterprises were primarily involved in wholesale trading (45 per cent of employees in Japanese enterprises were active in wholesale trading) while Danish and French enterprises were to a large extent involved in the group other business activities (60 per cent and 63 per cent, respectively). Figure 5 Number of employees in foreign owned enterpises as a percentage of all employees in the industry in Sweden 1998 Chemicals and rubber Non - metallic mineral products Machinery Basic metals Wholesale trade Food Electrical and optical eqipment Data consultancy Other manufacturing Pulp, paper, printing, publishing Research and other business services Hotels och restaurants Textiles Transports Financial services Motor vehicles Wood and wood products Mining and quarrying Travel agencies, post/telecom Motor vehicle trade Other services Metal products Retail trade Construction Per cent

8 7 Most employment in a few enterprises Of the foreign-owned enterprises active in Sweden, 73 per cent were defined as small (< 50 employees). These enterprises, however, only employed 10 per cent of employees working in foreign-owned enterprises. Instead, most employment occurred in large foreign-owned enterprises. Only 7 per cent of foreign-owned enterprises were defined as large (> 250 employees), but their share of employment in all foreign-owned enterprises was 64 per cent. Medium-sized enterprises ( employees) comprised 20 per cent of foreign-owned enterprises and their share of employment was 26 per cent. In respect to the whole of the Swedish business sector, foreign-owned enterprises were most influential in employment terms in company sizes employees (30 per cent) and employees (22 per cent). The employees of larger foreign-owned enterprises were mainly active in the manufacturing sector while smaller foreign-owned enterprises had most of their employees in the service sector. Of the foreign-owned enterprises with at least 250 employees, 70 per cent of employees were involved in mining and manufacturing, while for the smallest enterprises (< 50 employees) the comparable figure was only 4 per cent. The latter enterprises had most employees in wholesale trading, i.e. 27 per cent of employees worked in this industry. Larger counties dominate Almost 60 per cent of employees in foreign-owned enterprises were situated in the larger counties ( the counties of Stockholm, Skåne and Västra Götaland). In these three counties there were employees, of which almost half were based in Stockholm. Although most employees were based in the county of Stockholm, the area with the greatest dependency on foreign-owned enterprises was the county of Västmanland. This, to a large extent, is because Asea Brown Boveri (ABB) is based there. Of the total number of employees based in Västmanland, 26 per cent were employed in enterprises that were foreign owned. Other areas where foreign-owned enterprises had a relatively large influence were in the county of Värmland (24 per cent) as well as the counties of Blekinge (20 per cent) and Dalarna (19 per cent). In almost all counties a large share of employment was found in foreign-owned enterprises involved in the mining, quarrying and manufacturing industry. In the counties of Stockholm, Norrland and Jämtland most employment in foreign-owned enterprises was within the service sector.

9 8 Tables

10 9 Table 1 Employees in foreign owned enterprises by industry and country of origin 1998 Country of origin 1) Total 1998 Number of Share of Mining, Manufacturing Wholesale trade Other industries employees employ- Number of Share of Number of Share of Number of Share of ees (%) employees employ- employees employ- employees employees (%) ees (%) ees (%) Nordic countries Finland Denmark Norway EU15 (excl. Swe, Fin, Den) Netherlands UK France Germany Austria Belgium / Luxembourg Italy Other EU Central and Eastern Europe NAFTA USA Asia Japan Other countries Switzerland TOTAL EU15 (excl. Swe) ) Regions Nordic countries: Denmark, Finland, Norway, Iceland EU15: Denmark, Finland, Belgium, Netherlands, Luxembourg, Germany, Austria, UK, Ireland, France, Spain, Portugal, Italy, Greece. Central and Eastern Europe: Bulgaria, Croatia, Lithuania, Poland, Russia, Slovakia, Czech Republic, Hungary NAFTA: USA, Canada, Mexico Asia: Cyprus, United Arab Emirates, Hong Kong, India, Indonesia, Israel, Japan, China, Kuwait, Malaysia, Pakistan, Saudi Arabia, Singapore, South Korea, Syrian Arab Republic, Taiwan,Thailand, Turkey

11 10 Table 2 Foreign owned enterprises and employees by country of origin 1998 and 1997 Country of origin 1) Number of Number of Share of Number of Number of Share of enterprises employees employ- enterprises employees employees (%) ees (%) TOTAL EU Nordic countries NAFTA Asia USA Finland Switzerland Netherlands UK Norway Denmark France Germany Japan Cyprus Austria Belgium / Luxembourg Singapore Canada Saudi Arabia Italy Kuwait Australia Liechtenstein Panama Bermuda Spain Central and Eastern Europe Ireland South Korea Taiwan Czech Republic Hong Kong Netherlands Antilles South Africa Other countires Country not specified TOTAL ) Regions Nordic countries: Denmark, Finland, Norway, Iceland EU15: Denmark, Finland, Belgium, Netherlands, Luxembourg, Germany, Austria, UK, Ireland, France, Spain, Portugal, Italy, Greece. Note that Denmark and Finland are included in the Nordic countries and EU15. Central and Eastern Europe: Bulgaria, Croatia, Lithuania, Poland, Russia, Slovakia, Czech Republic, Hungary NAFTA: USA, Canada, Mexico Asia: Cyprus, United Arab Emirates, Hong Kong, India, Indonesia, Israel, Japan, China, Kuwait, Malaysia, Pakistan, Saudi Arabia, Singapore, South Korea, Syrian Arab Republic, Taiwan, Thailand, Turkey Note.. The information is not avaliable

12 11 Table 2 (continues) Foreign owned enterprises and employees by country of origin 1990 Country of origin 1) 1990 Number of Number of Share of enterprises employees employees (%) TOTAL EU Nordic countries NAFTA Asia USA Finland Switzerland Netherlands UK Norway Denmark France Germany Japan Cyprus Austria Belgium / Luxembourg Singapore Canada Saudi Arabia Italy Kuwait Australia Liechtenstein Panama Bermuda Spain Central and Eastern Europe Ireland South Korea Taiwan Czech Republic Hong Kong Netherlands Antilles South Africa Other countires Country not specified TOTAL ) Regions Nordic countries: Denmark, Finland, Norway, Iceland EU15: Denmark, Finland, Belgium, Netherlands, Luxembourg, Germany, Austria, UK, Ireland, France, Spain, Portugal, Italy, Greece. Note that Denmark and Finland are included in the Nordic countries and EU15. Central and Eastern Europe: Bulgaria, Croatia, Lithuania, Poland, Russia, Slovakia, Czech Republic, Hungary NAFTA: USA, Canada, Mexico Asia: Cyprus, United Arab Emirates, Hong Kong, India, Indonesia, Israel, Japan, China, Kuwait, Malaysia, Pakistan, Saudi Arabia, Singapore, South Korea, Syrian Arab Republic, Taiwan, Thailand, Turkey Note.. The information is not avaliable

13 12 Table 3 Foreign owned enterprises by industry 1998 Industry NACE 1998 Rev. 1 Number Number Share of Number of Foreign owned of enter- of em- enterprises enterprises enterprises of prises ployees of all foreign- in the busi- all in the industry owned enter- ness sector 2) in Sweden (%) 3) prises 1) Agriculture, forestry, fishing electricity, gas, water supply Mining, manufacturing Mining and quarrying Food, beverages and tobacco Textiles Wood and wood products Pulp, paper Chemicals, rubber, plastic prod Non- metallic mineral products Basic metal industries Machinery and equipment Fabricated metal products Machinery Electrical and optical equipment Transports Other manufacturing Construction Services Sales of motor vehicles Wholesale trade Retail trade Hotels and restaurants Transports Travel agencies, post/telecom Financial services Real estate Data consultancy Research and development and other business services Other services Not classified by industry TOTAL )The share of enterprises refers to foreign owned enterprises in the industry in proportion to the total number of foreign owned enterprises. 2) Business sector: Enterprises, enterprises interest organisations etc., branch offices to foreign owned enterprises, banking, other financing institutes, insurance institutes and unregistered firms. 3) The share of foreign owned enterprises refers to foreign owned enterprises in the industry in proportion to the total number of enterprises in the industry in Sweden.

14 13 Table 4A Foreign owned enterprises and employees by industry 1998 Industry NACE 1998 Rev. 1 Number of Number of Share of Number of Employees enterprises employees employees employees of all in the of all in in the busi- industry in foreign owned ness sector 2) Sweden (%) 3) enterprises 1) Agriculture, forestry, fishing electricity, gas, water supply Mining, manufacturing Mining and quarrying Food, beverages and tobacco Textiles Wood and wood products Pulp, paper Chemicals, rubber, plastic prod Non- metallic mineral products Basic metal industries Machinery and equipment Fabricated metal products Machinery Electrical and optical equipment Transports Other manufacturing Construction Services Sales of motor vehicles Wholesale trade Retail trade Hotels and restaurants Transports Travel agencies, post/telecom Financial services Real estate Data consultancy Research and development and other business services Other services Not classified by industry TOTAL )The share of employees refers to employees in foreign owned enterprises in the industry in proportion to the total number of employees in foreign owned enterprises. 2) Business sector: Enterprises, enterprises interest organisations etc., branch offices to foreign owned enterprises, banking, other financing institutes, insurance institutes and unregistered firms. 3) The share of employees refers to employees in foreign owned enterprises in the industry in proportion to the total number of employees in the industry in Sweden.

15 14 Table 4B Foreign owned enterprises and employees by industry 1997 Industry NACE 1997 Rev. 1 Number of Number of Share of Number of Employees enterprises employees employees employees of all in the of all in in the busi- industry in foreign owned ness sector 2) Sweden (%) 3) enterprises 1) Agriculture, forestry, fishing electricity, gas, water supply Mining, manufacturing Mining and quarrying Food, beverages and tobacco Textiles Wood and wood products Pulp, paper Chemicals, rubber, plastic prod Non- metallic mineral products Basic metal industries Machinery and equipment Fabricated metal products Machinery Electrical and optical equipment Transports Other manufacturing Construction Services Sales of motor vehicles Wholesale trade Retail trade Hotels and restaurants Transports Travel agencies, post/telecom Financial services Real estate Data consultancy Research and development and other business services Other services Not classified by industry TOTAL )The share of employees refers to employees in foreign owned enterprises in the industry in proportion to the total number of employees in foreign owned enterprises. 2) Business sector: Enterprises, enterprises interest organisations etc., branch offices to foreign owned enterprises, banking, other financing institutes, insurance institutes and unregistered firms. 3) The share of employees refers to employees in foreign owned enterprises in the industry in proportion to the total number of employees in the industry in Sweden.

16 15 Table 4C Foreign owned enterprises and employees by industry 1990 Industry NACE 1990 Rev. 1 Number of Number of Share of Number of Employees enterprises employees employees employees of all in the of all in in the busi- industry in foreign owned ness sector 2) Sweden (%) 3) enterprises 1) Agriculture, forestry, fishing electricity, gas, water supply Mining, manufacturing Mining and quarrying Food, beverages and tobacco Textiles Wood and wood products Pulp, paper Chemicals, rubber, plastic prod Non- metallic mineral products Basic metal industries Machinery and equipment Fabricated metal products Machinery Electrical and optical equipment Transports Other manufacturing Construction Services Sales of motor vehicles Wholesale trade Retail trade Hotels and restaurants Transports Travel agencies, post/telecom Financial services Real estate Data consultancy Research and development and other business services Other services Not classified by industry TOTAL )The share of employees refers to employees in foreign owned enterprises in the industry in proportion to the total number of employees in foreign owned enterprises. 2) Business sector: Enterprises, enterprises interest organisations etc., branch offices to foreign owned enterprises, banking, other financing institutes, insurance institutes and unregistered firms. 3) The share of employees refers to employees in foreign owned enterprises in the industry in proportion to the total number of employees in the industry in Sweden.

17 16 Table 5 Foreign owned enterprises and employees 1998 by industry less aggegated than table 4A Industry NACE 1998 Rev. 1 Number Number of Share of Number of Employees of enter- employees employees employees of all in the prises of all in in the busi- industry in foreign owned ness sector 2) Sweden (%) 3) enterprises 1) Agriculture, forestry, fishing electricity, gas, water supply Mining, manufacturing Mining and quarrying Food, beverages and tobacco Food and beverages Food Other food products Textiles Made up textile articles Other textiles Wood and wood products Pulp, paper and paper products Publishing, printing chemicals, petroleum, rubber and plastic products Refined petroleum products Chemicals Basic chemicals etc Pharmaceutical products Rubber and plastic products Non- metallic mineral products Basic metal industries Machinery and equipment Fabricated metal products Machinery Office machinery Other electrical machinery Radio, television, communication equipment Instruments Motor vehicles Other transport equipment Other manufacturing Furniture )The share of employees refers to employees in foreign owned enterprises in the industry in proportion to the total number of employees in foreign owned enterprises. 2) Business sector: Enterprises, enterprises interest organisations etc., branch offices to foreign owned enterprises, banking, other financing institutes, insurance institutes and unregistered firms. 3) The share of employees refers to employees in foreign owned enterprises in the industry in proportion to the total number of employees in the industry in Sweden.

18 17 Table 5 (continues) Foreign owned enterprises and employees 1998 by industry, less aggegated than table 4A Industry NACE 1998 Rev. 1 Number Number of Share of Number of Employees of enter- employees employees of employees of all in the prises all in foreign in the busi- industry in owned enter- ness sector 2) Sweden (%) 3) prises (%) 1) Construction Service sector Sales of motor vehicles Wholesale trade Electrical household appliances, radio and television goods Pharmaceutical goods Other household goods Solid, liquid and gaseous fuels Wood, construction materials and sanitary equipment Office machinery and equipment Other machinery Retail trade Hotels and restaurants Transports Travel agencies post/telecom Supporting, transport activities and of travel agencies Travel agencies Financial services Real estate Data consultancy Research and development and other business services Law and business firms, holding companies Architectural and engineering activities, testing and analysis Advertising Industrial cleaning Other business activities Other services Not classified by industry TOTAL )The share of employees refers to employees in foreign owned enterprises in the industry in proportion to the total number of employees in foreign owned enterprises. 2) Business sector: Enterprises, enterprises interest organisations etc., branch offices to foreign owned enterprises, banking, other financing institutes, insurance institutes and unregistered firms. 3) The share of employees refers to employees in foreign owned enterprises in the industry in proportion to the total number of employees in the industry in Sweden.

19 18 Table 6 Foreign owned enterprises and employees by size of enterprise 1998, 1997 and 1990 Size of enterprise/ Number of Number of Share of Share of Number of Number of Share of Share of Number of enterprises employees employees employees enterprises employees employees employees employees 1) (%) in the (%) in the business business sector (%) sector (%) TOTAL Size of 1990 enterprise/ Number Number Share of Share of Number of of enter- of em- employ- employees employees prises ployees ees (%) in the 1) business sector (%) TOTAL ) The size-class 0-49 is regarded as small enterprises, as medium-sized enterprises and 250- employees as large enterprises. Table 7 Employees in foreign owned enterprises by size of enterprise and industry 1998 Size of Total 1998 enterprise/ Number of Share of Mining, Manufacturing Wholesale trade Other industries Number of employees employ- Number of Share of Number of Share of Number of Share of employees ees (%) employees employ- employees employ- employees employees (%) ees (%) ees (%) TOTAL

20 19 Table 8 Employees in foreign owned enterprises by county and municipality in Sweden and by country of origin 1998 County / Municipality Total 1998 Number of Share of Nordic countries EU15 (excl. Fin, Den) Other countries employees employ- Number of Share of Number of Share of Number of Share of ees (%) employees employ- employees employ- employees employees (%) ees (%) ees (%) County 01 Stockholm Västra Götaland Skåne Västmanland Värmland Östergötland Dalarna Jönköping Örebro Västernorrland Kalmar Blekinge Uppsala Södermanland Kronoberg Gävleborg Halland Västerbotten Norrbotten Jämtland Gotland TOTAL Municipality Stockholm Gothenburg Malmö Other municipalities TOTAL

21 20 Table 9 Employees in foreign owned enterprises by county and municipality in Sweden and by industry 1998 County / Municipality Total 1998 Number of Share of Mining, Manufacturing 1) Wholesale trade 1) Other industries 1) employees employ- Number of Share of Number of Share of Number of Share of ees (%) employees employ- employees employ- employees employees (%) ees (%) ees (%) County 01 Stockholm Västra Götaland Skåne Västmanland Värmland Östergötland Dalarna Jönköping Örebro Västernorrland Kalmar Blekinge Uppsala Södermanland Kronoberg Gävleborg Halland Västerbotten Norrbotten Jämtland Gotland TOTAL Municipality Stockholm Gothenburg Malmö Other municipalities TOTAL ) The number of employees is calculated by the industry of the establishment and not the industry of the enterprise as in table 1.

22 21 Table 10 Establishments in foreign owned enterprises by county and municipality in Sweden 1998 County / Municipality Total 1998 Number of Share of Number of Share of establish- establish- establishments establishments ments ments (%) 1) in the business- in the business sector 2) sector (%) 3) County 01 Stockholm Västra Götaland Skåne Västmanland Värmland Östergötland Dalarna Jönköping Örebro Västernorrland Kalmar Blekinge Uppsala Södermanland Kronoberg Gävleborg Halland Västerbotten Norrbotten Jämtland Gotland TOTAL Municipality Stockholm Gothenburg Malmö Other municipalities TOTAL )The share of establishments refers to establishments in foreign owned enterprises in the county in proportion to the total number of foreign owned establishments. 2) Business sector: Enterprises, enterprises interest organisations etc., branch offices to foreign owned enterprises, banking, other financing institues, insurance institutes and unregistred firms. 3) The share of foreign owned establishments in proportion to the total number of establishments in the county.

23 22 Table 11 Foreign owned enterprises and employees by county and municipality 1998 and 1997 County / Municipality Number of Number Share of Share of Number of Number Share of Share of establish- of em- employ- employees establish- of em- employ- employees ments ployees ees (%) in the ments ployees ees (%) in the business business sector (%) sector (%) County 01 Stockholm Västra Götaland 1) Skåne 2) Västmanland Värmland Östergötland Dalarna Jönköping 1) Örebro Västernorrland Kalmar Blekinge Uppsala Södermanland Kronoberg Gävleborg Halland Västerbotten Norrbotten Jämtland Gotland Älvsborg Skaraborg Kristianstad TOTAL Municipality Stockholm Göteborg Malmö Other municipalities TOTAL ) From 1998 all the municipalities (except Mullsjö and Habo) in the county of Älvsborg, Skaraborg along with the county of Gothenburg- and Bohus have formed a new county with the name the county of Västra Götaland. The municipalities Mullsjö and Habo are found in the county of Jönköping from For the years 1990 and 1997 the accountancy is however made according to the former county division. 2) The county of Skåne is from 1997 a union of the county of Kristianstad and Malmöhus.

24 23 Table 11 (continues) Foreign owned enterprises and employees by county and municipality 1990 County / Municipality 1990 Number of Number of Share of Share of establish- emplyees employ- employees ments ees (%) in the businesssector (%) County 01 Stockholm Västra Götaland 1) Skåne 2) Västmanland Östergötland Värmland Dalarna Jönköping 1) Örebro Kalmar Västernorrland Södermanland Blekinge Kronoberg Uppsala Halland Gävleborg Västerbotten Norrbotten Jämtland Gotland Älvsborg Skaraborg Kristianstad TOTAL Municipality Stockholm Gothenburg Malmö Other municipalities TOTAL ) From 1998 all the municipalities (except Mullsjö and Habo) in the county of Älvsborg, Skaraborg along with the county of Gothenburg- and Bohus have formed a new county with the name the county of Västra Götaland. The municipalities Mullsjö and Habo are found in the county of Jönköping from For the years 1990 and 1997 the accountancy is however made according to the former county division. 2) The county of Skåne is from 1997 a union of the county of Kristianstad and Malmöhus.

25 24 Facts on Survey This section presents the methodological and quality aspects of the survey. The survey is described in respect to the scope, method of selection, some important definitions, sources, publication and quality. Background and Objective Reports on foreign-owned enterprises have been published in statistical reports since Starting in 1994, the category Foreign-owned enterprises was included in the statistical specification International business, with NUTEK as the responsible government authority. In connection with this the scope of the report was broadened. As of 1st January, 2001, the Swedish Institute for Growth Policy Studies, ITPS is responsible government authority for official statistics on International business. The surveys include foreign owned enterprises in Sweden, Swedish enterprise groups having subsidiaries abroad and the structure of the total business sector according to the degree of internationalisation. The Swedish private business sector is to a large and increasing degree internationalised. Since the end of the 1980 s, the term globalisation has been used to describe the process of new and more complex relationships between trade and direct investment, as well as the increased interdependence between a company s, or companies, activities in different countries. The aim of these statistical reports on foreign-owned enterprises is mainly to examine and analyse the extent and changes in foreign ownership over time. Extent of survey The survey is directed towards all companies that according to our records or via other sources fit the definition of foreign-owned enterprises described below. The survey of foreign-owned enterprises is voluntary. Records of foreign-owned enterprises are available from the year 1980 onwards. The survey contained questions about the country of origin of a foreign-owned enterprise and the ownership shares of both direct investors as that of the parent company. The home nation of the parent company determined which country a foreign-owned enterprise belonged. In this Statistical Report only operating enterprises are analysed, i.e. enterprises that are registered at the Swedish Patent and Registration Office and at the Tax-authority. An operating enterprise should also be registered as employer or for VAT. There are also questions about mode of market entry. Number of employees is based on the Business Register at Statistics Sweden. If there is no information about the country of origin of an enterprise the enterprise in question is classed as unspecified country. What is a foreign-owned enterprise? By foreign-owned it is meant those enterprises where more than half of the voting rights are held by one foreign owner, which is the definition used by the OECD. This means that in those enterprises where up to 50 per cent of voting rights are held by non-swedes are still considered Swedish enterprises. There can be a large difference between the ownership of a number of shares in a company and the possibility to influence the business activities of a company that has more than one shareholder. A foreign investor with more than 50 per cent of the voting rights in an enterprise has an undeniably powerful influence over the business activities of an enterprise. In those cases where the share of the voting rights is smaller it is more difficult to judge how strong the influence of that particular shareholder is or actually carries out in practice. Before 1996, the accounts of the airline company SAS were rendered entirely in Denmark. Since SAS is a Scandinavian company and the three governments in Denmark, Norway and Sweden each have equal say in the business activities of the company the home nation of SAS has been redefined. One third of the employees and number of companies are accounted for in Norway and another third in Denmark. The accounts of the remaining third are rendered in Sweden and thus are not included in the statistics covering foreign-owned enterprises. Adjustments have been made for the year 1990 in this Statistical Report. Statistical units In most of the tables the enterprises themselves are used as accounting units. This is not valid for the regional tables, where the establishment (actual place of work) is the accounting unit. Thus, the totals for each industry in the regional tables are not the same as those where actual enterprises are used as the accounting units. In the survey, the branches of foreign-owned enterprises are also included. This accounts for around 7 per cent of all enterprises, but only 2 per cent of all employees in foreign-owned enterprises.