Sweden'S "Abandonment" Garment Industry Is On The Way To Change.

Sweden used the opportunity of not being involved in the two World War and became one of the richest countries in the world.

Similarly, this Nordic rich country faced two challenges in the last 30 years of the last century, and made two major strategic adjustments in its development, thus laying a solid foundation for maintaining economic prosperity after twenty-first Century.

Drastic adjustment of industrial structure

In the 60s of last century, Sweden was the fastest growing economy after the war, with an average annual economic growth rate of over 5%.

However, high speed economic development also lurks a crisis.

With the rise of new industrialized countries, the traditional industries that have brought industrialization and economic prosperity to Sweden, such as steel, shipbuilding, iron ore, textile and clothing, have been more and more impacted by labor intensive industries.

Especially after the two oil crisis that occurred in the world in 70s, the Swedish economy almost fell into a stagnant development.

In the face of this severe challenge, what should the Swedish economy do? Is it to reform on the basis of the existing industry, or to make drastic adjustments to the whole industrial structure?

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With the adjustment of industrial structure, great changes have taken place in the whole economic structure of Sweden.

In the 20 years from 1970 to 1990, the share of the third industry has risen from 53% to 64%.

The proportion of public utilities has grown particularly rapidly.

From 1970 to 1990, the proportion of employment in the public sector increased from 20% to 30%.

Increasing investment into global trend

Since the end of the 1980s, under the pressure of the increasingly collectivization of the global economy, Europe has also accelerated its pace towards economic integration.

The Swedish economic community will not let go of this opportunity, thus causing another climax of economic globalization in Swedish history.

There are two forms of expression: one is to link up with large enterprises in other countries and form a new super large scale pnational group; the two is to invest heavily and establish subsidiaries in other countries as the bridgehead to enter the country and region.

In the boom of marriage, the most striking is the merger of Asia Ge Corp and Brown Boveri, Switzerland, making up the largest electric manufacturing company in the world, ABB.

At the same time, Swedish enterprises are making foreign investment hot.

In 1986, Sweden's foreign direct investment increased from 14 billion kronor in the previous year to 25 billion kronor.

By 1990, Sweden's foreign direct investment amounted to SEK 84 billion in just a few years.

It was not until Sweden decided to join the European Union that its foreign investment began to decrease.

The member states of the European Union are the main investors of Swedish enterprises.

As of 1990, about 84 billion of kronor's foreign investment in 60 billion was invested in the European Union's 12 member countries.