Foreign Direct Investment:: Country Risk Assessment of Spain

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Foreign Direct Investment:: Country Risk Assessment of Spain

By | July 2002
Page 1 of 19
Table of Contents

Pages

A.Introduction 3
B.Political Indicators 4-11

C.Economic Indicators 12-18

D.Social Indicators 19-23

E. Overall County Total 24

F.Works Cited 25

A. Introcution

Spain's powerful world empire of the 16th and 17th centuries ultimately yielded command of the seas to England. Subsequent failure to embrace the mercantile and industrial revolutions caused the country to fall behind Britain, France, and Germany in economic and political power. Spain remained neutral in World Wars I and II, but suffered through a devastating Civil War (1936-39). In the second half of the 20th century, it has played a catch-up role in the western international community. Continuing concerns are large-scale unemployment and the Basque separatist movement.

Spain's population density, lower than that of most European countries, is roughly equivalent to New England's population density. In recent years, following a longstanding pattern in the rest of Europe, rural populations are moving to cities. Spain has no official religion. The constitution of 1978 disestablished the Roman Catholic Church as the official state religion, but still recognizing the role, it plays in Spanish society. More than 90% of the population is at least nominally Catholic.

Through out the risk assessment, ratings are given before the risk indicator summary. These rating are given for current status and a status five years from now. Please keep in mind that the scale is measured from 1 – 7, 1 being the best and 7 being the worst.

B. Political Indicators
1.Political StabilityCurrent Rating:2
Forecast 5 Years:3
Right now under the Jose Maria Aznar Lopez's administration free market enterprises are being advocated to boost the economy. The government intends to make further progress in changing labor laws and reforming pension schemes, which are key to the sustainability of both Spain's...

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