Spain - Europe's Rising Star

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Case Details:

Case Code : ECOA103
Case Length : 12 Pages
Period : 2003
Organization : -
Pub Date : 2003
Teaching Note :Not Available
Countries : Spain, Europe
Industry : -

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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Background Note

Spain's present language, religion and laws had originated from the Roman period. The Romans captured Spain in the 2nd century BC and made the region a colony. The last Roman strongholds collapsed only in 7th century AD...

Economic Policies

Spain was one of the faster growing countries in the EU. Between 1997 and 2000, real output grew at over 4% . This created more than two million jobs, bringing the rate of unemployment down from 21.5% to 14%...


The Spanish industry had come a long way in the past three decades. It produced a range of goods including textiles, iron and steel products, ships, automobiles, processed foods, chemicals and various other kinds of consumer and industrial goods...

Foreign Trade

A legislation introduced on 1st February 1992, had eliminated many foreign exchange and capital controls. It provided complete freedom with regard to financial transactions between Spanish residents and non-residents...

Foreign Investments

Foreign investments had played a significant role in modernizing the Spanish economy during the past three decades. Attracted by Spain's large domestic market, export possibilities and growth potential, foreign companies had entered the country in large numbers...

Future Outlook

In early 2003, the Spanish economy continued to do well, as low interest rates fuelled domestic demand. Real interest rates were negative, given the European Central Bank rate of 2.75% and Spain's 4% inflation...


Exhibit I: Spain at a Glance, 2001
Exhibit II: Spain: Macro Economic Indicators
Exhibit III: Comparative Analysis: Economic Indicators, 2001
Exhibit IV: Spain: International Trade Profile, 2001
Exhibit V: The Rise of Spanish MNCs


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