Sweden finally establishes institute in the border (7)

'sweden' is the definition.
(synonyms)

'finally establishes institute in the border' is the wordplay.
'finally' suggests the final letters.
'institute' becomes 'i' (common abbreviation as in MIT).
'in' indicates putting letters inside.
'the border' becomes 'verge' (verge is a kind of border).
The final letter of 'establishes' is 's'.
'i' put into 'verge' is 'verige'.
's'+'verige'='SVERIGE'