Business infrastructure
The business infrastructure in Spain is fairly developed. There are direct services by air to most cities in the United States from Barcelona and Madrid. The travel network between both Barcelona and Madrid is well developed as there are bus services that operate between the airport and Madrid and Barcelona. There is availability of taxis in most cities of Spain. The transport network is also reliable as there is good network of highway in the country that makes transport easy. To the North-West part of the country, in Asturias and Galicia, secondary road network is poor. There is an expansive and extensive railroad system in Spain. There are fast trains that operate from Madrid to the two areas of Malaga and Sevilla. The railway system between Barcelona and Madrid is efficient and well developed. Buses in Barcelona and Madrid may be found to be crowded during rush hours but they are fast and efficient.
The communication to and from Madrid can be compared to those in major United States cities. There is a direct dial-up telephone system that links Spain with the United States and most countries of the world. The calls that are made to the United States may get charged and billed by international card companies like ATT, ACM and Sprint. With the use of these calls, it is possible to get directories to the various locations by dialing 025. There are changes that were made to the telephone network of this country which make older telephone numbers to be incorrect and invalid. There is a need to have correct telephone numbers for it is effective. From 1998, there was the introduction of provincial codes which begin with 9. It was not until 1999 that the first digit of mobile phones was changed to 6. The public phones in this country accept the use of coins and Telefonica debit cards. This makes communication easier and simpler in this country. Electricity is readily available and the electricity infrastructure has been well developed. Electric current is 220V of AC, 50 cycles. Most electrical equipment and gadgets from the United States will need a transformer and plug adapter in order to use Spain power.
Ease of doing business
The index of registering of new companies in Spain is 2.92 as of the year 2009. The highest value that it has gone is 5.42 which were recorded in the year 2006. The lowest value is that of 2009. New business registration is seen to be deteriorating by the day. The index includes new registration of limited liability companies. The delay that one has to wait in order to get electrical connection is 9.30.This was taken and recorded in 2009. This measure is the time it takes for one to get electricity after applying for this connection. In the same breath, the time it takes to get electricity connected permanently is 101.00. This is the measurement to gauge the delay that one has to wait in order to get a permanent connection of power. This is the median that the provider and user indicate should be ideal to wait to get electricity. The rate of firing costs of a worker who is considered to be redundant is 56.00. This is the highest and lowest rate. This is recorded in weekly basis. Informal firms in Spain are ranked at a value of 18.33. These are firms which do not report all the sales that they have made for fear of tax being applied to them. The rate of firms which are expected to give gifts to officials of taxes stands at 14.34. Informal gifts are the gifts that are given when the firm meets the tax officials. The labor tax contributions in Spain stand at 36.70. These are the taxes and contributions that are mandatory to be made on labor. Profit tax in Spain stands at 1.20. This is the tax that is charged at the profits obtained from a given company.
Trade barriers
There are trade barriers that could hinder the start of businesses in Spain. One of the trade barriers that hinder the start of business in Spain is biotech corn which is not allowed to be sold in Spain. Companies that deal with agricultural biotechnology products could be passed. This is law which does not allow close proximity of organic, conventional and biotech crops. The distance that has been passed between them is 220-meters. Construction firms from other countries, notably from America have not been able to win public road construction contracts in Spain. This is not the case with Spain road construction firms in America which have won large public road construction contracts. Although the issue of discrimination has not come out significantly, this is something that seems to be taking toll in Spain. There are efforts, though, between the United States and European Union that is aimed at fostering harmony and ability to do work together. The two countries agreed on 30th of April 2007 to create Transatlantic Economic Council that would foster the agreement and economic cooperation between the two countries. Spain has been seen to foster the talks to EU regarding this issue.
The parliament of Spain adopted EU Television without any further regulations required from them. While importing items, there is a requirement to have documentation regarding this importation.
Risk safety
The rate of risk safety in Spain, especially the corruption aspect is seen to be high. There is higher corruption index in Spain compared to other countries. The rate of corruption is comparable to developing nations which have authoritarian regimes. This trend has been seen to be going on for a period of four years. This corruption comes from the local government authorities. This is seen in the way they handle business transactions. When compared to America, this seems to be lower in terms of integrity. Municipal councils in Spain are known to have a higher corruption index when compared to other sectors of the economy. Corruption seems to be emanating from this area.
Economic freedom is the basic right of every individual to have control of their own labor. In a society where there is free economic freedom, the people are able to work, invest and produce goods the way they deem fit. This freedom is protected by the state and also unconstrained by the same state. In such economic free societies, governments will allow the flow of goods and labor free. The index is measured in a scale of 0 to 100 where 100 represents maximum freedom. The index of economic freedom in Spain is 68.0 in the year 2013. This is lower than 2012 which was recorded at 69.1.
Percentage of middle class
The percentage of middle class in Spain is seen to be 59.4. The growth in the middle class group of people stated in 1970. The social conditions of the rural workers fell, which diminished the power of big land owners. The rise in the technical and educational institutions has led to the increase in the middle class population in Spain. This class is seen to be slipping because of the hard economic times which have led to the betterment of cheaper standards of living in Spain. This theory has not been proven yet but it is something which can be observed.
Coefficient
The coefficient in Spain is seen to be standing at 0.339 which is the same figure it stood in the year of 1995. This is the same figure that Europe average stood at. The figure is made worse when a comparative analysis is made against such countries like Germany and France which have this figure in the range of 0.292. The eruption of the economic crisis which was experienced in 2007 there were many effects that affected the economic well being of this country. This led to the deterioration of the many benefits that country was experiencing.
Government regulations
There are government regulations which are experienced in Spain. The aspect of importation is guided by the government. While importing items, there is a requirement to have documentation regarding this importation. This is a requirement that is a regulation for importing goods.
References
Abou-Zeid, E.-S. (2007). Knowledge management and business strategies. Group Inc (IGI).
Bryman, A., & Bell, E. (2007). Business research methods. Oxford: Oxford University Press.
Markus, S. (2010). Business Process Transformation. M.E. Sharpe.
Welman, J., & Kruger, S. (2001). Research methodology for business and administrative sciences. Oxford: Oxford University Press.
