Eighteenth century: This is a time of political turmoil for Sweden. In 1718, following the death of King Charles XII and defeat in battle, Sweden is forced to give up almost all its overseas possessions. Up to that point, it had been a formidable military power. Sweden then establishes a parliamentary government and drastically reduces the power of the monarch. This period, from 1718 to 1772, is known as the age of liberty. Natural science, culture, and the Swedish economy flourish in the longest period of peace Sweden has known since the second half of the sixteenth century.

Today: Sweden is a liberal parliamentary democracy that has created a high standard of living for its citizens by adopting a mixed system of high-tech capitalism and extensive welfare benefits. Timber, hydropower, and iron ore are the most important elements in the economy, which depends heavily on foreign trade...