s (namely, France, the U.K,
             Germany and Italy), who have a slight competitive advantage due to their
             proximity. In Spain, U.S. products are regarded highly, and imports is a
             growth market, as evidenced by recent trends provided by the U.S. State
             Department: for instance, toiletries imported in 2000 increased a full 88%
             from prior years. Overall imports of cosmetics, perfumes and toiletries
             combined increased 40% between 1998 and 2000.
             The U.S. also benefits from a reputation of having high quality,
             technologically sophisticated products. The U.S. must consider, however,
             when conducting business overseas that its European partners offer add-on
             services tailored towards local needs, like financial assistance, service
             after the sale and niche product segmentation. According to the U.S.
             Department of State, Spain is the fastest growing major industrialized
             country in the world. The cosmetic industry has enjoyed a growth rate of
             8.7% since 1998, and 5.2% in 1999 alone. In recent years, the demand for
             this type of product has risen among the general population. The demand is
             As one of the world's 10 largest economies and one of the fastest-
             growing major industrialized nations, Spain offers many U.S. companies the
             ideal market for potential sales in the cosmetics sector. In recent years,
             Spain has undergone considerable socioeconomic changes as a result of its
             Spain has what's known as a "market economy" which is like other
             European Union countries. In a market economy, capital can move freely and
             transfers can be affected without restriction. Imports of foreign products
             are conducted using an irrevocable letter of credit until a relationship is
             established, whereby other forms of payment can be negotiated between the
             parties. Spain uses the "freedom of contract theory" which allows
             flexibility in terms between parties with the caveat that the terms do not
             v...