Industrial Structure and Country Risk in a Nordic Perspective

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Abstract

Foreign investors in the Nordic countries are most likely to find country risk arising from problems on the supply side, as in corporate structural changes. Such changes manifest themselves in a tendency toward concentration and internationalization on the macroeconomic level. Country risk can be divided into political risk and the risk of suspended payments, both of which are directly related to a country's economic development. Any assessment of country risk must start with an evaluation of the longer term survival potential and competitive strength of the companies in the country concerned. This requires analysis of the industrial structure in terms of: 1. production and organization at the national level, 2. the conceptual content of production, and 3. the degree of diversification of production. Organization should be assessed in terms of: 1. ownership structure, 2. degree of concentration and internationalization, and 3. degree of diversification. The indicators are analyzed for Sweden, Finland, Denmark, and Norway, revealing a pattern of risk on the supply side.

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Subject classification (UKÄ) – MANDATORY

  • Business Administration
  • Economics and Business
Original languageEnglish
Pages (from-to)99-111
JournalUnitas Quarterly Review
Volume56
Issue number4
Publication statusPublished - 1984
Publication categoryResearch
Peer-reviewedYes