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City Guide - Madrid - Business | ||
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Business Business Profile: In addition to being the administrative, political and transportation hub of the country, Madrid is also Spain's financial centre. Over half of Spain's companies have headquarters in Madrid, along with foreign banks, insurance companies and prestigious business consultants and auditing firms. The national stock exchange (Bolsa) is also based here. However, rival Barcelona is rapidly overtaking Madrid as the favoured location of international companies. The financial, insurance and real estate sectors in Madrid have a market price Gross Added Value (VAB) of 2,467,366 billion Pesetas and are thus the most significant contributors to the city's economy. These activities are supplemented by other successful service industries, including transport and communications (958,580 billion Pesetas), media and publishing (872,92 billion Pesetas), and leisure and tourism (541,292 billion Pesetas). As well as their vital economic contribution, these sectors are the main sources of employment in the city, with 149,900 people employed in the transport and communications sector alone. The most important industrial sectors are machinery and electrical materials (353,046 billion Pesetas), paper and printing (332,273 billion Pesetas), chemical and pharmaceutical products (202,147 billion Pesetas) and transport materials (178,567 billion Pesetas). Most industry is located on the southern fringes of the city, where the textile, food and metalworking factories are clustered. Foreign companies with a presence in Madrid include Peugeot, IBM, Siemens, Shell and Proctor and Gamble. Major exhibitions and trade fairs take place within the Campo de las Naciones convention district. The stock exchange and banking headquarters, as well as luxury offices and business complexes, are located along Paseo de la Castellana, which leads to the new business district of skyscrapers in northern Madrid, officially called Urbanización Azca but known to many as 'Little Manhattan'. Madrid is protected from the worst ravages of Spain's unemployment; in September 2000 the level was 11.5% (as opposed to 13.7% on a national level). Business Etiquette: Standard business hours are 0900-1400 and 1600-1900, although in the summer 0800-1500 is quite common. Larger companies and multi-nationals however, are increasingly working through the day in line with the rest of Europe, although smaller and local businesses still take the mid-afternoon break. Promptness is not the norm. Traffic jams are commonly used (and readily accepted) as an excuse for arriving 15 minutes late. Breakfast meetings are popular, perhaps because they are usually accompanied by delicious little cakes and strong coffee. Lunch and dinner meetings are also common. Business cards are vital at initial meetings and smart dress, including a suit (and tie for men), is advisable. Small talk is a vital accompaniment to any meeting as personal relationships must be developed before business can be done: children, grandchildren, the flight to Madrid and the weather usually occupy the conversation before business rears its ugly head. While Madrileños work extremely hard, nothing is of more importance than the family and it is entirely acceptable for an important telephone conversation to be postponed if a family member rings. |