Spain Presented By: Justin Harris-Shaw Erin McBride Bradley Orr

SpainPresented By:

Justin Harris-ShawErin McBrideBradley 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

Land in Square Kilometers•504,030 km2

•About ¾ the size of Texas

Population

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 (1939-1975)– Took control following

Spanish Civil War– Experienced stagnation;

lagged behind other Western European Nations

– State ran utilities, banks, agriculture, and industry


• 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%


King Juan Carlos I and Queen Sofia Prime Minister Jose Rodriguez


• 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%


Economic Minster Pedro Solbes

Industry MinisterMiguel Sebastian


• 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


• 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


• 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


• 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


– 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????

Documents

Spain Presented By: Justin Harris-Shaw Erin McBride Bradley Orr