International Spain Business Proposal

International Business Paper

International Spain Business Proposal

              Spain is located in Western Europe, its neighboring countries are Portugal, France, Morocco, Gibraltar and Andorra. Gibraltar is considered an overseas territory of the United Kingdom and Andorra, one of the tiniest countries in the world, is located on the mountainous border between Spain and France. The territorial size of Spain is 195,360 squared miles, which makes Spain second largest country in the European Union. Its population is 47.7 million people.

              Spain’s political system is a democracy organized in the form of a parliamentary government under a constitutional monarchy. Felipe VI is Spain’s Monarch and Mariano Rajoy Brey is Spain’s Prime Minister, who has been in power since 2011. The People’s Party is a conservative and a Christian democratic political party that is in power in Spain since the 2015 general election. The Spanish legal system is a civil law system based on comprehensive legal codes and laws rooted in Roman law, as opposed to common law, which is based on precedent court rulings. Spain has mixed capitalist economy, which means both the state and the private sector directs the condition of the economy.  Spain has a gross national income of 1.525 trillion dollars and its gross national income per capita is 32,030 PPP dollars.

                Spain has a lot of natural resources, its major exports are vehicles, they make up about 18 percent of total exports. Another exports include: machines, engines, pumps, oil, electronical equipment, fruits, nuts. The top export destinations of Spain are France, Germany, Portugal, Italy and the United Kingdom. Major imports of Spain are oil, vehicles, electronic equipment, pharmaceuticals. Most of these major imports come from countries like Germany, France, China, Italy and the United Kingdom. Spain is a member of International Monetary Fund, International Trade Center, World Trade Organization and World Customs Organization. Spain’s currency is Euro. Euro is freely exchanged, as it is the official currency of the Eurozone, it also is the second most traded currency in the world.

Business proposal

           Spain has a comprehensive public health system that accounts for approximately 85-90 percent of the sector’s activity. The market for healthcare technology equipment in Spain is estimated at 9.2 billion US dollars for 2014 and is expected to increase by approximately 2 percent in 2017. Therefore, due to many contributing factors my business proposition would be for Smith’s Medical Supplies to export its medical equipment to Spain.

            As Spain has been experiencing economic issues since 2008 it was not the only country in European union to reduce health spending as governments deal with budget deficits. However, this sector in Spain still relies heavily on imports. Despite difficult economic circumstances and budget cutbacks, imports in 2015 increased slightly to approximately 6.4 billion U.S. dollars. Therefore, if Smith’s Medical Supplies were to export its medical equipment to Spain, it could boost the company’s sales and increase its revenues. Additional sales over long term, once the export development costs are covered will increase overall profitability of the firm.