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Spain
Presented By:
Justin Harris-Shaw
Erin McBride
Bradley Orr
Location
• Located in Southwestern Europe on Iberian
Peninsula
• Mainland is bordered by Mediterranean Sea
• To the north- France, Andorra, the Bay of
Biscay
• To the West- Atlantic Ocean, Portugal
Demographics
• Spain has an area of 504,030 km²
• 2nd largest country in Western Europe and
European Union after France
• Approximately 40,525,002 people
• Capital- Madrid
• Birth Rate- 9.71 births to 1,000 people
Religion
• 76% of Spaniards are Catholic
• 2% are of other religions
• 20% do not identify with religion
• Most Spaniards will not participate regularly
in religious services.
Spanish Cuisine
• Mediterranean Spain- Seafood Dishes
• Inner Spain- Thick Soups
• Atlantic Spain- Vegetables and Fish based
stews
Sports
•
•
•
•
•
•
•
•
Running- Fermín Cacho Ruiz
Football – Best football clubs in Europe
Basketball
Tennis
Cycling
Handball
Golf
Skiing
Holidays
• Can have up to 14 public holidays a year
• Up to nine of these holidays can be chosen by
the government. At least two holidays can be
chosen locally.
• Holidays: 1. New Years Day
2. Good Friday
3. Labor Day
4. Assumption of Mary
5. Hispanic Day
6. All Saints Day
7. Constitution Day
8. Christmas Day
Spain vs. United States
Population and Size
Population
Land in Square
Kilometers
•504,030 km2
•About
¾ the size of Texas
GDP comparison
• Spain
– Ranks 9th in the
world
– 1.403 trillion
• United States
– Ranks 2nd in the
world
– 14.26 trillion
Spain’s Top
Industries:
•Textiles
•Apparel
•Food and beverages
•Metals
•Chemicals
•Tourism (2nd in the
World)
Religion
Spain
vs.
US
Business Etiquette
• Greeting- Kissing on both cheeks is the norm
• Business Meetings- Will want to get acquainted before
proceeding with a deal
• Lunches- arrange ahead of time. Time of relaxation and
enjoyment.
• High on Conversation
• Recognize regional differences - 17 regions in Spain
• Be on time
• A smoking nation
• Common to give gifts after a successful deal- flowers, dessert,
wine
• Dress Important
Political, Legal, and Regulatory Climate
• Socialist economy
under Dictator
Francisco Franco (19391975)
– Took control following
Spanish Civil War
– Experienced stagnation;
lagged behind other
Western European
Nations
– State ran utilities, banks,
agriculture, and industry
Political, Legal, and Regulatory
Climate
• Slow, peaceful transition to Democracy and an
economy based in Capitalism
– Franco named Juan Carlos I as his successor prior to his
death in 1975
– Heir to the throne of Spain
– Emerging from stagnation
– Took necessary steps to join the European Union
– Joined EU in 1986
– Economy grew drastically between 1994 and 2007 with
annual GDP growth between 3% and 4%
Political, Legal, and Regulatory
Climate
King Juan Carlos I and
Queen Sofia
Prime Minister Jose Rodriguez
Political, Legal, and Regulatory Climate
• In 2008, Spain was the 7th largest economy in the world
– Dropped to 9th in 2009
• Government Activity
–
–
–
–
Pedro Solbes; Economic Minister
Miguel Sebastian; Industry Minister
Economic Stimulus
Directed toward public works and decreasing unemployment
• Strong Banking System
– Large-scale banking reform between the 1980’s and 1990’s
– Bank of Spain regulated by European Central Bank
• Ensures free circulation of capital between all EU member
nations based in the Euro
– What about mortgage-backed securities?
– Prime lending rate currently around 9.54%
Political, Legal, and Regulatory
Climate
Economic Minster
Pedro Solbes
Industry Minister
Miguel Sebastian
Political, Legal, and Regulatory Climate
• National, Regional, and Global Markets
– IBEX 35, IGBM, LatibexTOP, IBEX TOP
• Spain’s 4 main stock indices
• located in Madrid, Barcelona, Bilbao, and Valencia
– The EU has an “Internal Market” among its member
nations
• This ensures free movement (no tariff, duty, or tax) of goods,
services, currency, and people throughout all member nations
• Main EU trade partners are France, Germany, Portugal, Italy, UK,
Netherlands
– World Trade Organization Member
• The EU handles all matters directly pertaining to Spain and the
WTO
• Major WTO partners; US and China
Political, Legal, and Regulatory
Climate
• Economic Risks and Threats
– 2008 Global Economic Crisis
• GDP shrunk from 3.7% in 2007 to 1.2% in 2008
• Unemployment grew from 8.3% in 2007 to 13.9% in
2008
• 19.8% (est.) below poverty line
• Inflation rate up to 4.1% in 2008 from 2.8% in 2007
– Banking problems
• Delinquint and outstanding loans
Political, Legal, and Regulatory
Climate
• Economic Risks and Threats Cont’d
– Cost of Living
• Very expensive to live in urban areas
• High demand for living space in cities causes housing
prices to be artificially inflated
– average price of owning a home in Spain was
200,000 U.S. Dollars (185,000 Euros) in 2004
– Owning a 110 square meter home in Madrid costs
around 300,000 U.S. Dollars
– Government Spending
• High government spending has created large budget
deficits in the 2008 and 2009 FY’s
Political, Legal, and Regulatory Climate
• Economic Risks and
Threats Cont’d
– Terrorism
• Basque Fatherland and
Liberty (ETA)
– Established in the
Basque region of Spain
in 1959
– ETA has declared two
cease-fires
– Spanish and French
cooperation
Political, Legal, and Regulatory
Climate
– Terrorism Cont’d
• Al Queada in Spain
– 10 bombs planted on
commuter trains
– detonated within
seconds of each
other on March 11,
2004
– 191 killed
– Spain later withdrew
its support as a
coalition member in
the war in Iraq
ANY QUESTIONS????