SPAIN AS A TARGET MARKET

QUESTION 1 : Discuss the advantages of doing business in all of these five countries: Spain, Morocco, Russia, China and Czech Republic. (See Table in appendices’ section)

Before doing business with a country, investors need to take several factors into account. Indeed, the global health of the country in particular areas are determinant as far as the future of the investment is concerned. In our present case, we will have a look at five main criteria that are the political stability, the currency stability, the domestic growth, the labour qualification and the exports potential. This criteria will be studied on 5 countries : Russia, Czech republic, China, Spain and Morocco.

In terms of political stability, China and Spain are the best placed countries. China is especially in a good position considering the fact that it will need to strongly prove its stability because of the Olympic games that it will organise in 2008. Spain’s main problem in this area is to deal with the 17 regions and the ETA actions that tend to divide the country more than bringing a unification. Moreover the terrorists attacks of 2004 really harmed the government. For the Czech Republic the stability is questionned because of the recent changes that happened in the government and the failure of the last one in place. Finally, Morocco would not be the best because of its strong corruption problem, and the government may be easily disturbed with unemployment and poverty issues. Finally, Russia is out of the ranking, as the country has very tense relationships with the US a lot of conflicts inside the government.

As far as the currency stability is concerned, countries using the euro currency are favoured because of the good stability of the euro, and its position with the US dollar. Spain is then considered as being the safest money to invest in. Chineese’s Yuan, the Czech Republic’s Krone and Russian’s Rouble are stable, and at least in line with their