Foreign Direct Investment:: Country Risk Assessment of Spain

The Spanish were the first to take advantage of the New World’s riches by forging an intense national unity that enables it to dominate Europe as well as the New World wall France and England were preoccupied with political disputes and religious conflict. The treasures seized from Mexico and Peru added to Spain’s military and economic power. The single-minded focus on gold and silver also tempted the Spanish government to live beyond its means. Between 1557 and 1662, the kings of Spain were forced to declare bankruptcy 10 times.

Throughout history, as we study Spain we can clearly recognize high and low points in their success. In the fifteen hundreds Spain had no influence on European affairs, Spain essentially vanished out of Europe. However, within one complete century Spain had become not only a leading power but they also had a great sense of effectiveness in Europe. Spain experienced a Golden age with many social, economic, political aspects. On the other hand, within

During the 15th century, many considered Spain insignificant. However, within a century it became a world-dominant power in Europe. Although Spain only took a brief time to rise, it was also short-lived. The rise of Spain was due to its flourishing culture, stable political system and successful voyages to the New World. On the other hand, its decline was due to religious control, resistance from other countries and inflation.

They had bases to attack between Rome and Carthage. With the fall of the Roman Empire, Spain was overcome by successive barbarian invasions. During the early middle ages, Spain saw the country forming the front line in a battle between both Christian and Islamic forces in the Mediterranean. The 16th and 17th centuries marked the peak of Spanish power, which they called, “Spain’s Golden Age.” Spain acquired vast empire by defeating the centralized states of the Americas, and colonizing the Philippines. The Spanish empire had tercio units, which was a Spanish military unit. The tercio units were supported by gold and silver which were both dominant in Europe. It was not until the years after The Thirty Years' War that Spanish military power began to fade. Even then, supported by a strengthened navy, Spain remained a major military power throughout the 18th century, in competition with Britain and France on the global stage. The Spanish empires had fought a lot more people for example, 237-218 BCE Barcid conquest of Hispania, 218–217 BCE Roman conquest of Hispania, 181–179 BCE First Celtiberian War, and, lastly, in 155-139 BCE The Lusitanian War (History

From the election of a new middle class government and the declaration of the Second Spanish Republic in 1931 until the outbreak of the Spanish Civil War in 1936, Spanish society struggled to establish a stable, representative democracy for only the second time in its long political history. With the spread of industrialization, the rise of a new working class, and the emergence of a new era of political movements, ideals, and philosophical ideologies or “isms” throughout Europe and the United States—communism, socialism, marxism, anarchism, fascism, etc., Spanish society grappled to find common ground between more traditional and conservative political groups—the Catholic church, the

In 1936, when Spain collapsed into its long and bloody civil war, the issues and underlying tensions in the European state system were becoming increasingly obvious and pressing. Long before the birth of the Spanish civil war, Europe, due to the `balance of power' arrangement held between the continents main power brokers, was in a state of diplomatic congeniality. Inefficient governments with no desire for reform reigned supreme under this system. However this period of political stagnation was blown asunder by the `Great War'. Following years of death and destruction and an apparent inability to recover fully, people began to question their governments and call for reform. These popular calls for reform gave birth to a number of radical groups and seen an explosion in their numbers as they resolved to provide strong rule. Dictatorships and political extremes sprouted throughout Europe. These include groups on both sides of the political divide; in Germany the Nazi Party, in Italy the fascists, in Russia the communists. Smaller instances of both can also be seen to have

The Conservatives appointed a strong central authority someone who would be a voice of the party. The Conservative party made every effort to unite Spain through politics, and religion but the opposing party did not

After a long history of mutual hostility, independence supporter have declared Catalonia has a new state and Spain has rejected the declaration by establishing direct rule on the autonomous region. Years of tension over the level of autonomy Catalan had under Spain’s constitution triggered a surge towards independence. On October 27, Catalonian parliament, where majority rule are separatist representatives, announced independence and imposed Spain, a constitutional monarchy, to transfer legal rights to the independent region. In response, Spain has announced the arrest of Catalan President Carles Puigdemont and his cabinet and disbands the regional parliament. Internationally, the EU and member states have responded to this conflict has an internal Spanish affair despite brutal actions of Spanish authorities on the Catalonian independence referendum.

A candor and vigil man, there is unlike any dictator in history than Francisco Franco. His reign commenced in 1939, and it prolonged until his death in 1975. He had a bewitching characteristic to his leadership: warlike. Military surged through his veins since he was an infant. Born in a naval town of northwestern Spain in 1982, his father came from a paternal lineage of naval officers. He, too, wanted to appertain in this “long, ancestral line.” Unfortunately, the naval academy in his hometown closed when Franco was able to apply. He, instead, enrolled in The Military Academy in Toledo in 1907 (Hicks, par. 3). After twenty years of service, Franco became the chief-of-staff of the Spanish army. Francisco Franco was not a politician. He was a military man. Having a compass that was distinctly militant and an authoritarian boast in his actions made for a long reign of forty-plus years for Franco.

Throughout a good amount of time in the 20th century, Spain was an unstable nation due to quite a few reasons; even some that carry over from the 19th century. From three different assassinations on the Prime Ministers within a span of 24 years, bombings, labor strikes, social/political uprisings, and of course military repression. When many thought there was a light at the end of the tunnel…there was not. The monarchy was changed into a hybrid of a monarchy and a dictatorship followed by the Second Republic. The victory of the right wing led to the start of what was known as, “Bienio Negro”, or the two black years, as the right reestablished itself in power. In the years 1936-39, there was a Spanish Civil War following a failed military coup led by Francisco Franco and the other generals. Once his faction received

The Spanish Civil War was a war that caught the eyes of the politicians, media and creatives around the world. What began as a Spaniard’s war was co-opted by Fascists and Communists of the world seeking to show the merit their might, a proto-cold war (…). The seed of this war was planted prior to the reign of the communism and fascism. They were planted far before, in the nineteenth century. The nineteenth century was a turbulent time for Spain. The opposition to the monarchy resulted in the pushes for the constitutional rights, liberalism, and even the short-lived republic. Combined with the destruction of their empire, by the United States and the revolutionaries,

The Spanish Civil War left the country with enormous economic problems. Foreign exchange had been wiped out, especially with the outbreak of WWII, which rendered supplies unavailable (Prados de La Escosura, Rosés y Sanz Villarroya 3) Even after WWII, aid was inexistent because of the cost of the war. Neighboring European countries were not keen on including them in a recovery program either, due to the Nationalist victory in the Civil War. Thus, for about a decade after the Civil War, Spain’s economy was still in severe depression (Solsten).

There has been rising tensions in Spain as a region of it wants to secede putting economic growth in jeopardy. Harriet Alexander points out that Catalonia initially was an independent nation, with its own set of language, laws and customs. However their prosperity lasted till the reign of King Philip V. where, The War of Spanish Succession declined with the defeat of Valencia in 1707, then of Catalonia in 1714, and ending with the last of the islands in 1515. The conflicts that it inflicted promoted the birth of modern day Spain. Moreover she states that the Catalonia is the industrial core of Spain and considers it to be the most wealthiest regions. It contributes 19% of Spain’s GDP and can cost 20% of Spain’s economic output if secession

Primo de Rivera’s fate resumed in the landowners deserting him while he attempted to introduce arbitration committees for worker’s wages and conditions. On one hand, it can be argued that the unfairness and failure to address the diverse concerns of its people had caused the Spanish Political system to lose the elections of April 1931. On the other hand, the gains that liberals and socialists made in the 1931 elections had aided their popularity in Spain. The king was advised to abdicate by the military and Spain became a republic once again, over the short period of half a century. Preston argues that Spain’s social tensions had grown in the period between the two republics, yet nobody was anticipating a civil war in the April of 1931.

After long consideration from our management team, we have decided to introduce a contingent set of initiatives corresponding to “Foreign Direct Investment” in Ethiopia. There has been a considerable rise of FDI opportunities recently within Ethiopia. The following document will discuss; cultural, political, as well as economic trends and patterns that influenced our outlook on FDI into Ethiopia. Moreover, this memo will analyze the potential risks and or barriers to entry, foreign firms could encounter when attempting FDI to Ethiopia. Lastly, our team will aim to outline a proposed plan relating to FDI in Ethiopia for our organizational business partners. There were many sources of information which influenced our “Foreign Direct Investment” conclusion for Ethiopia such as; research on cultural, political, and economic factors ongoing currently in Ethiopia. Additionally, our group is a combination of “Foreign Direct Investment” specialists including two Ethiopian counterparts residing within Ethiopia. Hence, a part of our investment plan includes first-hand direct insider Ethiopian research, conducted from Ethiopia. Accordingly, the strategies developed, by our management team, for FDI in Ethiopia have been formulated using high business acumen and business analytics pertaining to present Ethiopian economic conditions. Seemingly, one will see from these proposed FDI initiatives that Ethiopia is one of the most stable countries for