International Business

Market Entry Project: Spain

Amber Goodnough
Savannah Shiflet
Colin Walters
Marissa Wilson
 Country Overview
Spain is a magnificent country located in southwestern Europe. Neighboring countries of

Spain include Portugal to the west and France to the north. To the southeast of Spain is the

Mediterranean Sea and to the northwest is the Atlantic Ocean. It has a land area of 195,124

square miles along with a coastline of 3,084 miles (about education). Currently, Spain has a

population of 47,921,693 people; 23,672,033 are male and 24,249,660 are female. The

population density of Spain is 94.7 people per square kilometer as of April 2016 (Country

meters). Population numbers are projected to dramatically increase due to migration reasons.

A larger number of people are moving into Spain than the number of people moving out.

The main industries of Spain are as follows: textiles and apparel, food and beverages,

metals and metal manufacturers, chemicals, shipbuilding, automobiles, machine tools, clay and

refractory products, footwear, pharmaceuticals and medical equipment (about education).

Industries are mainly concentrated in the region of Madrid where large textile, automotive

parts, and electronics manufacturers are located in Catalonia and Valladolid, and rich natural

mineral resources are exploited from Valencia, Asturias and the Basque Country (infoplease).

The main natural resources of Spain include iron, coal, and zinc. Canning fish is also a large

industry along the Atlantic Coast. Lastly, agriculture is important in Spain, but unfortunately

many areas lack mechanization by insufficient irrigation and have soil exhaustion and erosion

(infoplease). Products produced from the agriculture industry include grains, vegetables, olives,

wine grapes, lemons, oranges, strawberries, sugar beets, citrus, beef, pork, poultry, dairy
products and fish. Aside from the industries in Spain, tourism is a major part of the economy

and income.

Cultural Analysis

Many people think of Spanish culture as Flamenco music and dance, bullfighting, exotic

food, sunshine and beaches. Spain has much more to offer than the typical Spanish culture and

is rich in art and history. Spain has an extraordinary artistic heritage and the Toledo-based artists

El Greco and Diego Velazquez had dominant figures of the Golden Age (donQuiiote). The art

world in the early 20th century was influenced by a remarkable group of Spanish artists: Pablo

Picasso, Juan Gris, Joan Miro and Salvador Dali, ambassador of the artistic culture in Spain

(donQuiiote). A large amount of art and history can be discovered in museums around Spain. The

Prado Museum in Madrid is one of the most famous museums in Spain and visitors can view

many masterpieces there. One important masterpiece, of many, in the museum is the Las

Meninas painting by Spanish painter Diego Velazquez. There are other important museums in

Madrid where Picasso masterpieces and other famous artwork can be viewed (donQuiiote). Aside

from museums in Madrid, there are several museums throughout the country that have equal

importance and historical material for individuals to admire.

In Spanish culture there are traditional meanings to several colors. Red symbolizes

bravery and indicates strength, vitality and passion. Green mostly stands for life and vitality but

can also mean energy, youth, and renewed life. Yellow encompasses generosity, love and can

give feeling of peace and rest. Lastly, blue has a meaning of loyalty and loyal love. The colors are

incorporated into the traditional folk dance and their dress while they dance (Spain).
 Spanish music is extremely essential for any fiesta in Spain. Rock and pop music is

popular with young Spaniards and there are many excellent home-grown bands. Madrid has the

most lively and varied music scene, although the Catalans are recognized as Spains most serious

music lovers, particularly with the regard to opera, jazz, and Catalan song (Spain). Rock, jazz,

flamenco, and classical are the most popular music types in Spain. There are often many jazz

festivals in multiple cities along with classical music concerts staged in Madrid, Barcelona and

Valencia. Also, there are often festivals of religious music.

In the business world of Spain, like other countries it is important and courteous to be on

time or early. There are often agendas for meetings, but do not have to strictly be followed.

Therefore, agendas are important as a guideline but not so strict to be followed exactly. Efficiency

is important in Spain. To achieve efficiency during business, documents are often distributed in

languages other than just Spanish so everyone attending the meeting can comprehend meeting

content (Passport to Trade). Although business people of Spain have a strong work ethic, business

is put second to family.

Spanish communication can be extremely confusing, but important to know when

engaging in conversation with someone in Spain. When introducing oneself to a Spaniard for the

first time, it is courteous to say good day or good evening along with shaking hands (Spain).

After around 3 oclock in the afternoon until 9, good afternoon is used instead of good day and

good night is used when someone is going to bed or leaving late at night (Spain). Before and

after a casual meeting or a formal meeting, men shake hands. When it comes to communicating

with friends and younger people, hi or hello is an appropriate introduction to a conversation

followed by how are you?. Another important component of communication in Spain is when

someone thanks a person; it is polite to reply with de nada which translates to of nothing.

Although the culture in Spain is usually open and tolerant to other cultures, some issues

are best avoided in casual conversation or business encounters. These sensitive issues of Spain

include: discussion about the Franco regime, concentration camps and prisons, the Spanish Civil

War, partisan politics, religion, conflicts between regions of Spain, homosexuality, personal

finances or questions of deep personal nature. Other topics to avoid include bullfighting,

machismo and feminism (Passport to Trade). Excessive gestures win the initial phase of a business

relationship, such as hugging or backslapping, should also be avoided (Passport to Trade).

Cultural change is not something people of Spain are voluntarily adaptive too. There is a lot of

history in Spain and the Spanish people are extremely proud of the particular region where they

come from (Passport to Trade).

Most often, men and women in Spain dress casual and have a modern outlook on clothes.

Style, fashion and quality are important in Spain. Its advisable to dress conservatively when

doing business or visiting government offices on official business. There are few occasions when

formal clothes are necessary and there are very few dress rules in Spain (except in respect to

places of worship) (Spain). Surprisingly, Spaniards do not consider bikinis, flip flops, and skimpy

tops to be street clothes. Instead, they are strictly meant for the beach or a swimming pool.

Initial business meetings in Spain begin with focusing on relationship rather than business.

Both parties will ask questions about background and family to become more acquainted with

each other. Once the initial meeting has already occurred, during next meetings it is unlikely for
business people to stick closely to the agenda. Business negotiations in Spain tend to be open

with one party taking the lead, although, agreements may be flexible (Strong).

In Spain, business people do not usually give gifts to each other. However, gifts are

sometimes offered at the end of a successful negotiation or to say thank you for a favor (Passport

to Trade). Obviously, gifts should not be viewed as bribes and therefore should not be too

expensive. Gifts are open as they are received and it is advisable to offer high-quality gifts. A

bottle of whisky or brandy is an alternative gift idea if there is nothing else to offer. When it

comes to giving flowers as gifts, it is frowned upon to give dahlias, chrysanthemums, white lilies

or red roses due to cultural associations (Passport to Trade). Also, it is important to give flowers

in odd numbers but they cannot add up to the number thirteen.

Spanish men have a reputation of having a macho attitude towards women. Instances

where women dress skimpier, men whistle or make comments towards them on the street.

Opposed to other countries, the whistling and comments are not viewed as disrespectful in Spain.

Instead, women who dress skimpier in Spain are often seeking attention from the men.

Although there are a few religions practiced in Spain, the majority of the population is

Catholic. Citizens of Spain have the right to freedom of religion guaranteed under the Spanish

constitution, but some extremes are prohibited (Spain). Spain is known for its historic churches

and cathedrals which many are in desperate need of restoration. Compared to other countries,

Spain also has seen attendance numbers of church dramatically dropping off. Also, it is difficult

to find new recruits to priesthood and therefore they have to resort to importing priests from

Latin America (Spain).

 A few holidays that are celebrated in the United States are also recognized in Spin. Major

holidays that are celebrated in Spain are New Years Day, Epiphany, Easter Holidays, Labor Day,

Assumption of Mary and Hispanic Day. Epiphany is celebrated on January sixth and is connected

with Christmas that observes the brining of gifts to baby Jesus by the Wise Men (Sexton). Some

cities are better-known for bigger celebrations on Easter Sunday. The biggest celebrations are

usually held in Seville (Sexton). On August 15, the Assumption of Mary is a holiday that celebrates

the ascension of Mary into heaven. Fireworks, a procession through the streets and images of

the Virgin Mary mark the holiday (Sexton). Hispanic day is celebrated on October 12 and is a

commemoration of the historic day in which Christopher Columbus landed in the New World

(Sexton). This holiday is huge in Spain and there is usually a marching parade.

Religion
Freedom of religion is guaranteed by the Spanish Constitution, similar to the U.S.

Constitution. Spain is dominated by Catholics. Catholicism became the state religion in 1851,

when the Spanish government signed a Concordat with the Vatican that committed Madrid to

pay the salaries of the clergy and to subsidize other expenses of the Roman Catholic Church.

The overwhelming wealth of cathedrals, churches and other religious institutions throughout

Spain gives the visitor a pretty clear idea about religion in Spain. Roman Catholicism is the clear

frontrunner in Spain's religious scene, with polls placing the percentage of self-identifying

Catholics at anywhere between 81% and 94% of the population (Religion). Other religions also

practiced in Spain include Islam, Judaism, Protestantism, and Hinduism, all of which have places

where to conduct their rituals.

 Holidays and festivals in Spain are very popular. Las Fallas is one of the more impressive

festivals in Spain. This event takes place each March in the Mediterranean city of Valencia. The

celebration lasts for a week and includes nonstop fireworks and noisy fanfare. Huge papier-

mch effigies satirizing Spanish and world celebrities fill the city's plazas, turning the town into

a veritable wonderland. The tradition started as a holiday to pay tribute to Saint Joseph,

Valencia's patron saint (Holidays). The southern city of Seville hosts two of the biggest

celebrations of the year. First is Semana Santa, a week of feasting and Roman Catholic

processions leading up to Easter. Holy Week in Seville features masked parades and enormous

floats with Roman Catholic figures. This somber spectacle is followed up by La Feria de Abril, a

much jollier event. Hundreds of tents and amusement park rides are set up for Seville's week-

long Feria (Holidays). One of Spain's other major celebrations is La Tomatina, a "tomato war"

held in the town of Buol outside Valencia. Tourists and locals gather on the last Wednesday of

August each year to stage a tomato-chucking battle of epic proportions. This event is part of a

week-long festival in honor of Buol's patron saint. As with most other Spanish holidays, street

parties and parades are customary (Holidays).

Personal Communication

One of the reasons that Spain is so well known is because of the Spanish language that is

spoken in Spain. Spanish, or Castilian, is one of the languages with the largest number of

speakers in the world. The Spanish language from Spain has a rich heritage and a long

history of evolution that over centuries has developed into the many variations of Spanish

that exist today throughout the world. Although Castilian Spanish is the official language of

Spain, it is not the only language used in Spain. The different regions of Spain also have
 regional dialects and co-official languages that are an important part of the Spanish cultural

patrimony. Galician, Catalan and Basque are just some examples of the regional languages

that exist in Spain and contribute to the rich cultural diversity that the country enjoys

(Official Languages).

Education

Learning the education system in another country can be a scary task. There are many

things that make this challenging language barriers, and cultural differences. However the

education system that Spain has adopted has improved tremendously over the past 20 years.

Good education and skills are important requisites for finding a job. In Spain, 55% of adults

aged 25-64 have completed upper secondary education, much lower than the OECD average of

75%. This is slightly truer of women than men, as 53% of men have successfully completed

high-school compared with 56% of women. In terms of the quality of the educational

system, the average student scored 490 in reading literacy, math and science in the OECDs

Programme for International Student Assessment (PISA), lower than the OECD average of 497.

On average in Spain, girls outperformed boys by 2 point, lower than the average OECD gap of 8

points. Literacy rate, adult total (% of people ages 15 and above) in Spain was 97.89 as of 2012.

Its highest value over the past 31 years was 97.94 in 2007, while its lowest value was 92.81 in

1981. Literacy rate, youth total (% of people ages 15-24) in Spain was 99.67 as of 2012. Its

highest value over the past 31 years was 99.70 in 2011, while its lowest value was 98.64 in 1981

(Spain-Literacy).

Physical and material environments

 Most of the topography of Spain consists of flat plains that are surrounded by rugged,

undeveloped hills. The northern part of the country however is dominated by the Pyrenees

Mountains. The highest point in Spain is located in the Canary Islands with Pico de Teide at

12,198 feet (3,718 m). The climate of Spain is temperate with hot summers and cold winters

inland and cloudy, cool summers and cool winters along the coast. Madrid, located inland in the

center of Spain has an average January low temperature of 37F (3C) and a July average high of

88F (31C) (Geography).

III. Political and Legal Analysis

Political Ideology

Spains Constitution was adopted in 1978 and was focused on basic rights, public

liberties, duties of the citizen, principles of social and economic policy, structure of the partial

monarchy and parliament. This constitution served as a means for the transition to the Spanish

democracy (Spain: Government). The form of government in Spain is a parliamentary

monarchy, which is a social representative, democratic, constitutional monarchy in which the

monarch is the head of state. The prime minister is the head of government, his official title is

President of the Government.

Political Stability

The global financial crisis has effected Spain as well as many other countries around the

world. A number of structural adjustments have enhanced the recovery for these countries.

Here are some statistics that can give you a better understanding of the stability of Spains

economy. Spains 2016 economic freedom score is at a 68.5, compared to the world average
which is a 60.7. The economic freedom status is considered to be moderately free. Spain ranks

43rd in the global ranking. It was noted that some of the success Spain has achieved is due to

open markets, and monetary freedom. Although there has been some progress, large fiscal

deficits and high levels of public debt necessitate a greater commitment to sound public

financial management and a return to a sustainable level of government spending. Corruption

continues to undercut respect for the rule of law (Spain: Economy).

Legal System

Spanish legal system is hierarchical, so laws of lower jurisdiction cannot conflict laws of

a higher jurisdiction. The rank, from higher to lower level, is:

Organic Law

Ordinary Law

Decree Law

Legislative Decree

Regulation

Government exercises the legislative power on behalf a bill. Bills are approved in the

Council of Ministers which shall submit them to the Congress accompanied with an exposition

of motives and the antecedents. Once a bill has been approved by the Congress it will be

delivered to the Senate that may, through a message explaining the reasons, veto or introduce

amendments into it.

The bills proposed by Government or the proposals of law issued by the Senate are discussed at

Congress in a Plenary Session in order to be accepted or to be tabled veto or amendments.

Proposals of law from the Congress and from popular initiative pass directly to the next step.

The practice of any legal profession or representation requires a law degree (LLRX).

International Relations

The United States and Spain are strong allies in the fight against terrorism. Spain also

has strategic partnerships with France involving aerospace and railroads. Germany and Spain

are joined in a strategic partnership involving the automotive industry, aerospace, and

renewable energy. Spain also has strong ties with the U.K. In theory Portugal, Italy, Ireland, and

Greece could be political allies for Spain, however they are economic competitors. Spain shares

common interests with Greece and Italy on European immigration policies. Spain and Canada

are both committed to protecting global security, democratic values, and human rights. Both

countries support international development policies especially in the sectors of health and

education. Spain and Canada are admirable partners at the multilateral level and work together

within the United Nations (UN), the North Atlantic Treaty Organization (NATO), the

Organization for Security and Cooperation in Europe (OSCE), the Organization for Economic Co-

operation and Development (OECD) and the World Trade Organization (WTO), among other

institutions (Government of Canada). Furthermore both countries participate in numerous

different multilateral peace and security operations. Spain is considered to have mid-range

powers in the U.N.

IV. Economic Analysis

A. Economic System
 Spain is described as a mixed capitalist economy. In 2008, like The United States, Spain

was affected by a severity in the housing market which punctured their economy. Between

then and now Spain has been strengthening their economic position globally as they are

constantly entering new affairs and building foreign relationships. After falling into the

European Sovereign debt crisis they have suffered from high unemployment rates and strict

housing procedures. Fortunately, Spain has a solid infrastructure that contributes to the trading

market. Spain also has a large draw for tourism which aids their GDP (World Economy Team).

Since the late recession in 2008, Spain has had a harder time borrow from the United

States Money Markets and is having to resort to the European centralized banks instead.

Citizens being able to borrow money from banks proves that these banks interest rates are

going down which allows more people to put more money into the economy in order to

stimulate it again.

A fiscal policy Spains economy has targeted in order to encourage growth and job

creation is A Royal Decree Law. The goal of this fiscal policy is to reduce taxes therefore citizens

will have more disposable income. Essentially, it is a more equitable tax system that plans to

take higher than present reductions for social benefits for families with children and/or

disabled members. Since the second half of 2015, when the policy went into effect, there has

been a very positive progress of collection (Presentaciones).

On a scale of 0 to 100 Spain scored a 67.2 in economic freedoms. Their world rank is 49th

and their regional ranking is 22nd of 43 European countries in 2014. In a one year span from

2013 to 2014 the index score dropped 0.8 points due to the mismanagement of government
spending primarily (Heritage). Over a twenty year history Spain has improved their global

position by 4.4 points. They have shown the most improvement from market openness and

freedom from corruption. Overall, Spain is only considered moderately free (Heritage).

B. Economic Development

Trading Economic reported in 2014 the gross domestic product in Spain was worth

1381.3 billion US dollars. Spains share of GDP is worth 2.23% of the world economy. Also

reported by Trading Economics in 2014, the GDP per capita was measured at 25617.55 US

dollars.

C. Financial Market

Madrid is the capital city of Spain, the 3rd largest city in the European Union, as well as

the financial center for Spain. Madrid is also the home of many headquarter companies. The

city has a population of 3.3 million people, being the most populous city in Spain. Barcelona,

Spain is another highly populated areas that is one of the leading tourist destinations in the

world. Malaga and Granada, other major cities in Spain, contribute greatly to the connection of

the developing economy.

According to Trading Economics, the IBEX 35 is a benchmark stock to measure the

performance of the 35 most liquid stocks on the Bolsa de Madrid. Spain IBEX 35 index dropped

.07% on April 15th of 2016. As the economy in Spain is rebuilding itself in the more recent years

you dont see a very stable growth in the charts. Just within the last 12 months the index lost

23.8%.
 The euro is most currently valued at 1.13 which is fairly moderate in comparison to the

history of the euro. By viewing the chart below you can see that the currency has not remained

entirely consistent in a few decades at least.

In 1999 Spain, along with numerous other European Union counties was anxious to introduce

the Euro. Today the Euro is their sole official currency. Interest rates for the euro are

determined by The Governing Council of the European Central Bank (Trading Economics).

D. Participation in Monetary System

The International Monetary fund poses as a mentor for global economies, advising and

guiding them. Spain is a part of the European Union, whom the IMF advises regularly though

Spain, and other countries of the EU receive an annual consultation.

Spains strong economy is also active in the Organization of Economic Cooperation and

Development (OECD) and The World Trade Organization (WTO). The OECD website predicts
that Spains economy will continue rebuilding during 2016 and 2017 . It reports that slow paced

reforms will result in business confidence and success for the country.

Trade is one of the largest impacts on the countrys economy since it is over 50% of the

countrys GDP. It is expected that by the end of 2016 Spains GDP will increase by another 2.3%

meaning there is finally a somewhat tangible growth in the countrys economy after the

recession they have faced (Economy Watch).

Banco de Espana reported their external debt (in EUR millions) in September of 2015

was 1.817.895 and in December of 2015 it was 1.815.216. Since Spain has been recovering from

the recession they have suffered the ability to stabilize their economy financially.

Section V. Trade and Investment Analysis Colin Walters

Role of Trade in the Economy

 Like most wealthy first-world countries, trade is an important part of Spains economy.

Spain runs a trade deficit, with that deficit shrinking by 8.1% in January 2016. (Trading

Economics) Trade of merchandise makes up 49.5% of their GDP as of 2015. (The World Bank)

Their largest trading partners are France and Germany. France accounts for 11.9% of imports

and 16.2% of exports, and Germany accounts for 13.4% of imports and 10.7% of exports. (CIA

World Factbook)

The main exports of Spain are motor vehicles, machinery, foodstuffs, oil, electronic

equipment, pharmaceuticals, plastics, iron or steel products, clothing, and other consumer

goods. As of 2015, the exports were valued at $277.3 billion, which was down from 2014s

estimate of $317.1 billion. The countries primary imports are machinery and equipment, fuels,

chemicals, semi-finished goods, and measuring and medical control instruments. Imports were

valued at $298.3 billion in 2015 and $345.6 billion in 2014.

National Comparative Advantage: Basic Attributes

Spain holds a comparative advantage in a few items. The chart below paints a clear

picture of a few items they hold an advantage in, and a few that they dont. Transport

equipment could also be labeled as high speed rail, as that is an important part of

transportation in the country.

 An item not on this list, but still very important to their economy, is tourism. Spain is a

very popular tourist destination, and it accounts for 6.4% of their GDP. We can say they have an

advantage here because Spain was ranked #1 in 2015 of the Travel and Tourism

Competitiveness Ranking. (World Economic Forum) Their neighbor, France, was a close second.

Governments Intervention in Trade

As with nearly every nation, one of the governments key roles is to protect jobs in the

economy. With Spains unemployment rate at 22.7%, job protection and creating is a very

important topic. While the economy has been turning around lately, people have called on the

government and their social partners to create a plan to decrease this massive unemployment

rate. Despite having no real plan of action yet, the unemployment rate has fallen about 2%

since 2014. (International Labor Organization)

 When it comes to national security issues regarding trade, it is primarily covered under

the EUs trade policies. National security is obviously a concern for every EU nation, and their

Common External Tariff policy is a collective agreement on not only how much of an item can

be brought it, but can also tell what is brought in. However, once it is allowed into one country

in the EU, it is allowed to freely travel among them all. This could potentially be a concern if an

item is considered dangerous or deceptive to the people of one nation but not another.

With the EU common trade policy, compromises between the 27 countries had to be

made. This will of course leave some countries unhappy no matter what happens. Spain is

considered a powerhouse of the EU, and would like to increase that. They also are keen on

expanding fair and regulated trade in emerging markets such as China, India, and Brazil. (Prarie)

Spain does not typically complain of unfair trade, and seem to be leaders in expanding trade

between the EU and other nations.

A great example of Spains economic motives is shown in investments in emerging

industries. Spain has donated money in the past to aid developing nations to finance technical

assistance. In 2001, 100,000 euros were donated to the WTO to be distributed to Latin

American companies. (World Trade Organization)

Trade Restrictions

When it comes to tariffs for trade in Spain, they use the European Unions Common

External Tariff. As a benefit to the states of the EU, there are no tariffs, so goods can flow freely

between them. When an item is being imported into Spain or another European Union member

nation, the item only has to clear customs once, and is then allowed to freely move within the
common customs area. (Europedia) The Common External Tariff is considered a massive

achievement among the nations, as many compromises had to be made in order for this to

work.

As with tariffs, Spain must also follow the EUs policy on import quotas. The various

quotas used by the EU are preferential, autonomous, management, and agricultural.

Preferential quotas are applied when a pre-determined amount of a good can be imported

from a select country with a given tariff. Autonomous quotas are designed to stimulate the

economy by promoting competition. These are low tariffed goods, normally granted to raw

materials. Management quotas have a first come first serve system. And agricultural quotas

typically vary depending on the specific good being imported, and can often involve high tariffs.

(European Commission)

There is complete freedom in currency exchange regulations in Spain. However, Spain is

authorized to limit certain transactions of non-residents if events could negatively affect

Spanish interests or businesses. A popular benefit of being a resident of Spain is that they can

freely hold bank accounts in other countries or currencies. The only cases where transactions

need to be disclosed are under request from the Bank of Spain.

International Organization Involvement

In addition to being a member of the European Union, Spain has also been a member of

the World Trade Organization since 1995 and a member of the General Agreement on Tariffs

and Trade before that since 1963.

 Spain believes EU trade policy should ensure it delivers its positive effects in boosting

growth, creating more jobs and responding to environmental challenges. As regards growth and

employment, there is a strong economic case for free trade. (International Labor Organization)

Spain has also been known to help developing countries among the WTO, in order to finance

technical and environmental assistance.

Foreign Direct Investment

The most detailed information of Spains FDI comes from 2014, where they had an

inflow of $22,904 million in USD. The top investing countries were Luxembourg, The

Netherlands, France, UK, Mexico, USA, Portugal, and Germany. Luxembourg takes up more

than twice that of the second investor with 36.6% of the FDI inflow. The main invested sectors

were commerce, real estate, financial intermediation, manufacturing, construction, electricity,

and communication. (Santander)

At the end of 2013, Spains outward investment was measured at $643.2 billion USD.

Primary destinations for Spanish investments are the United States, the UK, Germany, the

Netherlands, and France. The current balance of trade is at -2.3 billion EUR and their current

account is at -664 million EUR (Trading Economics).

VI. Summary

Spain is located in the southwest part of Europe. Spain is surrounded mainly by

international waters. The countries France and Andorra cover the north-west portion while
Portugal is on the western side. The Bay of Biscay lays entirely north of Spain, the Balearic and

Mediterranean Seas are on the east side and the Atlantic Ocean is on the western most side of

the country. Spain has a population of 47, 921,693 female dominant. The country has a land

area of 195, 124 square miles with approximately 3,084 miles of coast line. A few of Spains

main industries are textile, food, metals and automobiles.

Spain is rich in cultural history, especially in art, the country is well renowned for their

abundance of museums to learn about their culture. The Spanish flag is red and yellow, with an

image of the Spanish coat of arms pictured on it. Red symbolizes bravery, strength, vitality and

passion. Yellow symbolizes generosity, love and a feeling of peace or rest.

Even with a strong work ethic the Spanish culture values business second to family.

Although they do not abide by strict agendas, theyre goal is to achieve efficiency during

business ventures. There is a handful of subjects to avoid while conducting business with Spain

counterparts, some examples being: The Franco regime, Spanish Civil War, politics, religion,

homosexuality and personal finances. Most business deals are built from personal gatherings

which colleagues get to know each other on a more personal basis.

The most predominantly practiced religion in Spain is Catholicism. The country is well

known for their history of churches and cathedrals spanning the country. The churches

population has seen a tremendous plummet in recent years and the buildings are in serious

need of rehabilitation and restoration due to the lacking population.

 Since Spain faced hardships in 2008 theyve had a hard time completely stabilizing the

economy again. While their maintaining good international relationships still theyre struggling

to recuperate things within their own proximities.

We highly recommend that MESP Corporation expand their business into Spains market

place. Our group feels that because Spain has a mixed economy that could be an advantage to a

new international enterprise. Spain has a moderate level of freedom which should ease the

process of entering a foreign market. Also, in comparison to other competing countries Spain is

maintaining their financial position. The GPD per capita ranked appropriately. Based on our

findings Spain would be a great market to enter!

Top management will have many things to consider before deciding that they will enter

Spains economy with MESP corporation. A few particular things they should pay attention to

though is the relationships they gain while meeting with foreign investors, as that is primarily

what a business deal is first based off of. The difference of legal matters and the exchange rate

on currency will also be major impacts that could either become a burden or help succeed the

corporation. Import laws, tariffs and quotas could all be determining factors when making a

decision too. Ultimately, we believe that this will be a very successful plan of action!
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