Texas – A Key State in the U.S. Presidential Election and a Magnet for Swedish Business

In 1789, George Washington was elected the first President of the United States. The election is conducted through an Electoral College system firmly rooted in the U.S. Constitution, in the same way as the right to “keep and bear arms,” which became part of the Constitution through the Second Amendment in 1791. Texas, which we visited, holds 40 electoral votes, making it one of the most influential states. This can be compared to California, which has the most with 54 votes.

The U.S. presidential campaigns are now in their final stages, focused on the so-called "swing states," but other campaigning is also ongoing at the state level. The U.S. Congress consists of the Senate and the House of Representatives. Texas has 38 seats in the House, and those representatives are also running for election, as is Texas’ Republican Senator, Ted Cruz, who is seeking a third term in the Senate. Television ads from the various parties and candidates focus on issues such as abortion rights and gun rights. Over time, Texas has become more of a “purple” state. This is most evident in the “Texas Triangle” – Austin, Dallas, Houston, and San Antonio – where migration from more liberal states has been significant. Still, despite growing Democratic support in the cities, Texas remains a Republican “red state” in presidential elections.

There are approximately 400 million firearms in the U.S. (source: Small Arms Survey). Federal law does not require a gun license, though many states impose various licensing or registration requirements. In Texas, for example, “open carry” is permitted – meaning that individuals over the age of 21 who have no criminal convictions may carry firearms openly in public holsters. During our visit, the deep-rooted gun culture in Texas was clear. This is “gun country.” In Houston, shooting ranges are found throughout the city, used for everything from handguns to automatic weapons.

The Texas state flag, adopted during its time as an independent republic before joining the United States, holds high symbolic status. Both the “Lone Star Flag” and “The Stars and Stripes” are powerful symbols, and in Texas, people recite pledges of allegiance not only to the U.S. flag but also to their state flag:
“Honor the Texas flag; I pledge allegiance to thee, Texas, one state under God, one and indivisible.”

In simple terms, Texas – the Lone Star State – might be summed up as the land of cowboys, cowgirls, rodeos, ranches, and cattle. A wealthy oil and gas state with low taxes. At the same time, Texas is a major producer of agricultural goods and attracts entrepreneurs in IT, defense, space research, and more. These influxes of talent and technology have contributed to Texas’s rapid economic growth. One example is that Elon Musk moved Tesla’s headquarters to Texas this year. Meanwhile, SpaceX, also founded by Musk, launched a Starship rocket from its site in the state during our visit.

Ericsson, which has operated in the U.S. for over a century, has also established an advanced smart factory outside Dallas. This facility produces 5G equipment for the U.S. market and complies with the “Build America, Buy America” (BABA) requirements, meaning that products must be manufactured with domestic resources to support the American economy. The company’s North American headquarters is also located in Texas. All this illustrates how Texas offers an attractive business climate that continues to draw investment.

However, cities like fast-growing Houston are also among the country’s largest polluters. Heavy traffic, extreme heat that requires constant air conditioning, and oil-based industries contribute massively to greenhouse gas emissions. We saw no bikes or recycling bins, for that matter.

In the U.S., the Sarbanes-Oxley Act (SOX) applies to listed companies, and this law also affects Swedish firms listed on U.S. stock exchanges. SOX was introduced to restore trust in public companies after several accounting scandals. It aims to strengthen internal controls and enforce strict accounting standards to ensure the accuracy of information disclosed by companies. In Sweden, we have the Swedish Corporate Governance Code, which, like SOX, is based on the principle of ownership:
“Good corporate governance is about ensuring that companies are run sustainably, responsibly, and as efficiently as possible on behalf of shareholders.”

For Swedish companies, it is important to adapt to both American business culture and communication styles. Anyone who has spent a year at an American high school knows that communication is essential in this country. Students are trained to debate and express their views through debate clubs and classroom discussions. Americans have learned to argue their case. To build trust and credibility, it is essential to back up your claims with evidence, often referred to as “proof points.” Americans may come across as boastful, but it is perfectly acceptable to ask for sources during conversations to balance the discussion. If a company claims to be a market leader, they are expected to provide third-party validation.

Americans are also skilled at social networking. Business gatherings are often stand-up receptions where guests mingle and interact with as many people as possible, rather than seated dinners. It is best to avoid discussing politics, as the country is deeply polarized and bringing it up could jeopardize business relationships. Patriotism runs deep, and you gain nothing by boasting about how great Sweden is.

We cannot generalize about the U.S. – the country contains many cultures and approaches that must be considered when entering the American market. What works in Houston cannot necessarily be copied and pasted in New York. It is good to keep that in mind.

Helena Nordman-Knutson

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