ETLA Discussion Papers, The Research Institute of the Finnish Economy (ETLA) 917
The study examines the reasons behind foreign companies' decisions to locate in Finland. In addition, the operations of foreign subsidiaries as a part of a multinational group are examined. The study examines the views of companies' management regarding the future business prospects in Finland as well as the factors influencing these prospects. Furthermore, international expansion intensions of the companies are examined together with the views on Finland's strengths and weakness as a business environment. The paper is based on a survey conducted during March-April 2004 and targeted to the leaders of foreign-owned subsidiaries in Finland. The findings suggest that the motives of companies have changed relatively little between 1995-1999 and 2000 to present. The development of acquired companies has been promising after the change in ownership, measured by the extent and profitability of operations. Sectoral differences in factors affecting future prospects are relatively significant. However, the views on Finland's strengths and weaknesses as an operating environment are seen in a more similar way regardless of industry. The foreign subsidiaries' plans for enlargement from Finland during the next few years are regionally focused primarily on Russia, the Baltic countries and Eastern Europe.
inward foreign direct investment in Finland internationalization of business foreign companies