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

2. 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

3. Demographics Spain has an area of 504,030 km² 2 nd 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

4. 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.

5. Spanish Cuisine Mediterranean Spain- Seafood Dishes Inner Spain- Thick Soups Atlantic Spain- Vegetables and Fish based stews

6. Sports Running- Fermín Cacho Ruiz Football – Best football clubs in Europe Basketball Tennis Cycling Handball Golf Skiing

7. 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

8. Spain vs. United States

9. Population and Size Land in Square Kilometers 504,030 km2 About ¾ the size of Texas Population

10. GDP comparison Spain – Ranks 9 th in the world – 1.403 trillion United States – Ranks 2 nd in the world – 14.26 trillion Spain’s Top Industries: Textiles Apparel Food and beverages Metals Chemicals Tourism (2 nd in the World)

11. Religion Spainvs.US

12. 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

13. 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

14. 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%

15. Political, Legal, and Regulatory Climate King Juan Carlos I and Queen SofiaPrime Minister Jose Rodriguez

16. Political, Legal, and Regulatory Climate In 2008, Spain was the 7 th largest economy in the world – Dropped to 9 th 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%

17. Political, Legal, and Regulatory Climate Economic Minster Pedro Solbes Industry Minister Miguel Sebastian

18. 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

19. 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

20. 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

21. 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

22. 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

23. ANY QUESTIONS????