Implementation Of International Strategies In Spain

2298 words - 9 pages

1.INTRODUCTIONSpain is a Western European country, situated in the Iberian Peninsula with a population of nearly 40 million. For centuries, Spain has been considered a second rate country, lacking the natural, human and monetary resources of their rich northern neighbors. Every time Spain tried to catch up with those powerful countries the lack of capital, entrepreneurial tradition or able politicians have keep this nation in the second international row. During the past century a civil war followed by international isolation due to the dictatorship established in Spain kept this country far away from the western prosperity. During the years of dictatorship the country started an industrialization process that brought some prosperity to the country but protectionism and no international perspective slower its growth. During the last decade several factors helped to change the situation. A young, well-educated generation of managers with international background helped companies to became more competitive and aggressive against foreign competitors. A new right-liberal government freed Spain from its traditional protectionist policies towards a more freed economy. Privatization of government owned companies, former monopolies, created private, well managed, outstanding giants able to compete in a free market economy. All these factors made the Spanish economy one of the strongest and with the highest growth rate of Europe. After securing its national market, national companies attempted to go international focusing primarily on the South American market, closer to the Spanish in language and corporate culture. The implementation of the European currency, the Euro, provided those companies with the capital resources of a whole continent making possible for them to expand their business therefore acquiring the size they needed to compete in a one-to-one basis with the European corporate giants.2.THE YEARS OF DICTATORSHIPThe Spanish Civil War (1936-1939) marks a sharp stop to the industrialization process which begun in the last decades of the XIX century. After the war the country was entirely devastated with a much lower industrial and agricultural output than in 1935. Gold reserves were used during the war by the republican government to pay for war expenses. There was no way of financing the reconstruction of the country in the current international environment, World War Two (1939-1945). There was a shortage in food and raw materials and an enormous inflation rate due to the great amount of money in circulation. The sympathy of Spain towards the axis powers during the war led to animosity between the Allies and Spain, keeping the country away from any international relationship until 1951.The government tried to rebuild the industrial might focusing on what they called "National Interest Industries" taking into consideration only political considerations to decide which industry was subject to help. It wasn't until 1951 when the U.S. signed...

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