The U.S. – an overview

• 30 times larger than Sweden
• 280 million people
• 41 times the GDP Economic environment

Economic environment

The U.S. has a powerful, diverse, and technologically advanced economy. With a per capita Gross Domestic Product of US$31,500 it is one of the richest countries of the world, and its per capita GDP is the largest among the major industrial countries. The economy's strength lies in its size and diversity: it has a variety of natural resources, including substantial petroleum and natural gas reserves; a vast agricultural sector, producing a variety of crops and livestock; a strong and well-developed industrial base; an advanced service sector; and a highly educated and skilled labor pool.

Moreover, strong traditions in competition and enterprise have helped to drive the technological innovations that have made the US the world's leader in computers, software, electronics, and communications technology. The US Dollar is the most widely used currency for international trade and plays an important role to the world's smaller economies as many peg their own currencies to the dollar. The United States is in the middle of an 8 and half-year economic upswing. The economy of the U.S. has grown at a 4 percent pace for three consecutive years. Private consumption and investment are major reasons for this outstanding performance. The rapid growth of private domestic demand has offset the slackening in exports provoked both by the Asian crisis and an appreciation of the dollar due to increased capital flows. The increase in imports has contributed to the external current account that grew to 2 3/4 percent of GDP.

Source: US Chamber of Commerce

U.S. Exports & Imports

• Exports: Total value $714.5 billion (2003 est.)
• Export commodities: Capital goods, automobiles, industrial supplies and raw materials, consumer goods, agricultural products
• Exports partners: Canada 23.4%, Mexico 13.5%, Japan 7.2%, UK 4.7%, Germany 4% (2003 est.)
• Imports: Total value $1.26 trillion (2003 est.)
• Import commodities: Crude oil and refined petroleum products, machinery, automobiles, consumer goods, industrial raw materials, food and beverages
• Import partners: Canada 17.4%, China 12.5%, Mexico 10.7%, Japan 9.3%, Germany 5.3% (2003 est.)

Source: CIA World Factbook 2004

Sweden's Trade Balance with the U.S. in 2003

The U.S. has a long history of being an important trade partner to Sweden and at present time the American market is Sweden's most significant export market. In 2003, the Swedish export to the U.S. rose with 2% and was estimated to approximately SEK 94 billions, which is equivalent to 11.5% of Sweden's total export. Sweden mainly exports cars, pharmaceuticals, telecommunication products and energy related products to the US; food and beverages is an increasingly important sector.

Tips on Doing Business in the U.S.

The size and complexity of the market and American culture impacts on the way Americans conduct everyday business.

For example:

• American business people tend to be very busy. Requests, demands, and dealings with Americans should be brief, succinct, and to the point.
• When making initial contact with an American business, often a telephone call is more effective than a letter. There is a likelihood that a letter will languish on a busy person's desk beneath a stack of other papers and go unanswered.
• Faxes are widely used. Try to respond to faxes from the U.S overnight. Non-response is seen a lack of interest by American businesses.
• Appointments should be arranged with U.S. businesses well in advance to ensure that key personnel are available and can work you into their often-tight schedules.
• Business is often conducted over breakfast, lunch or dinner. Do not hesitate to initiate such invitations.
• Americans tend to be less formal and less reserved on first contact than many. The use of first names, even between managers and subordinates, is common.
• Business dress in the western U.S. tends to be more casual than in the eastern U.S. However, you will never be out of place with a business suit, and when in doubt about the dress standard, a suit is the best option.
• Tipping is normal and expected in restaurants (15-20% of the bill) and taxi cabs (15% of the fare). If a porter at an airport or a bellhop at a hotel helps you with your bags, you should tip at least $1.00 per night.

Source: US Chamber of Commerce