Foreign ownership shapes trade dependencies

News

Companies with foreign owners trade more with their owners' home countries, which can influence their trade dependencies. This is the key finding of a new analysis by the National Board of Trade Sweden.

The analysis introduces the concept of home-biased trade, which describes the tendency for companies to trade more with their owners' home country in the years around an acquisition.

"We hope our findings will contribute a new perspective to the discussion on economic security and strategic dependencies. By understanding how foreign ownership influences companies' trading patterns, we gain a better picture of how dependencies emerge and evolve over time," says trade policy adviser Ebba Lundqvist.

Read the full interview and download the report
Meet the Parents – dependencies after foreign acquisitions and the role of home-biased trade