Download Foreign assets regulations

Foreign Assets Regulations.
Sweden.
International trade is a very complex network for it relates to many forms of currency,
hence the reason why foreign asset regulation is such an important issue. Major issues are
fluctuating currencies, unfavorable trade balances, and regulation of one’s economy. Almost
any unfavorable imbalance faced by developing states can be detrimental to their fragile
economies.
Sweden is an economically stable nation, currently experiencing an economic boom.
Sweden has experienced economic growth of up to 4.6% in recent years. As for inflation or
trade deficits, Sweden has experienced a period of inflation in the early 1900s but the
situation has since stabilized (with the annual inflation rate at about 1.5% in 2006), and
Sweden has experienced a trade deficit in the past, but has since recovered; Sweden now
has an annual growth in GDP at around 2.5%. Sweden follows the similar trade policies of
other members of the European Union. In 2003 the nation of Sweden was able to turn their
deficit into a surplus, which has since continued to increase.
Sweden maintains a favorable trade balance. The Swedish economic system is export
oriented, (about 50% of everything manufactured in Sweden is exported). Sweden, though
not a member of any free trade unions / zone, is a supporter of free trade. Sweden itself has
a 76.6% free economy. Sweden does utilize protections policies such as tariffs. The
average tariff rate were 1.7% in 2006.
Sweden, though a member of the European Union, does not use Euros as their
currency. We use the Krona (kr). In the past, it had a fixed exchange rate but it is now a
floating currency. The currency’s exchange rate is primarily dependent upon monetary
policies set by the central bank of Sweden (the Sveriges Riksbank). Due to the fact that
Sweden’s economy relies heavily upon exports, if another currency such as a Euro were to
spike, it will benefit the economy because it will be cheaper for other European nations to
import from Sweden. If the Euros was to decline in value, it would be cheaper for Sweden
to import from these nations. Due to the make-up of the Swedish economy, either a spike
or decline in other currencies can be beneficial to our economy.
The nation of Sweden is quite liberal in it’s views on investment. With an 80%
investment freedom, foreign companies can easily be established in Sweden, and residents
or private businesses are free to invest abroad. The only type of restrictions on investments
is that permits are required for non-residents to purchase land in Sweden.
Naturally, the United Nations does not regulate foreign exchange markets, and they
should not. This would impose upon a nations sovereignty. There is a need for global
economic stability, and one way to attain this is by free trade. The UN should work to help
developing states with their economic situation as opposed to interfering with free trade.
Government or UN meddling in free trade can only create instability. Solving trade and
currency issues will only bring us closer to achieving our Millennium Development Goals,
because it would help us be one step closer to the eradicating poverty. Macroeconomic
policies can aid in eradication of poverty, if the right forms of macroeconomics is applied
to corresponding economic problems.
http://www.economist.com/countries/Sweden/profile.cfm?folder=Profile%2DEconomic%20
Structure
http://ekonomifakta.episerverhotell.net/en/Sweden_today/
http://www.traveldocs.com/se/economy.htm
http://www.state.gov/r/pa/ei/bgn/2880.htm
http://heritage.org/research/features/index/country.cfm?id=Sweden