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This book considers the question of the impact of multinationals on Sweden. Based on extensive original research the book examines the benefits and drawbacks of multinationals for Sweden. It relates the Swedish case of multinationals to theories of multinational enterprise and to theories of industrial change. It reviews the extensive debate within Sweden on the question and discusses the policy options available to Sweden. It argues that the mix within a multinational and the spatial distribution (either at home or abroad) of production, research and development, marketing and central functions is important in determining whether a multinational has a beneficial or adverse effect on a country like Sweden. As a small open economy which is considerably affected by movements in international trade Sweden provides the rest of the world with a unique example of the impact of multinational enterprises in terms of both outward and inward foreign direct investment.