Spanish foreign direct investment, transnationals and the redefinition of the Spanish business realm

Spanish outward direct investment grew substantially during the 1990s, transforming some Spanish businesses from national players to transnationals and adding a distinctive Latin American dimension to an essentially European economy. More broadly foreign investment contributed towards further globalisation. This paper examines the process of outward direct investment, the logic behind it, and some of its implications for the Spanish economy. It concludes that a number of Spanish businesses are now transnationals and that there is an interdependence between the Spanish and Latin American economies. Moreover, the Spanish business realm has emerged from the isolation of much of the twentieth century to re-establish itself in Latin America.