Spain´s role in the relations between Asia and Latin America

1440.jpgJanuary 2008. By Gonzalo Garland, Professor of Economic Environment at IE Business School.

Some analysts believe Spain is playing a key role in building relations between Asia and Latin America. That may be so, but we need to examine some aspects of this role in greater detail.

Recently, certain analysts have commented on the possibility of Spain becoming an important player in the relations between Asia and Latin America. They talk about a “triangulation” between the three geographical and economic areas that can be compared with Spain´s role in the European Union in the relations between the latter and Latin America. To a certain extent, it could also be compared with the important role Spain plays in the region when the interlocutor is the United States. However, there are significant differences that question whether or not Spain´s role can be so relevant in the case of Asia as it has been in the past in the cases of Europe or North America.

No one doubts Spain´s importance in the region of Latin America due to its history, language and culture and to the presence of Spanish enterprises in the local countries. In the European context, this clearly gives Spain and Portugal a privileged position as interlocutors for these countries in the context of the Union. The idea of the Ibero-American summits followed by the creation of the Secretaría General Iberoamericana (SEGIB) constitute two indicators of this trend. We could say that even the geographical location of the Iberian peninsular in the context of Europe makes the relations “natural”. Indeed, some European enterprises with interests in the region manage their operations better from the Iberian peninsular.

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IE Business School invites you to live the IE experience in real-time with a member of our world-class faculty. Enjoy a case discussion with Prof. Gamaliel Martinez, Professor of Operation Management with more than 20 years of experience in consulting in industries like Shipbuilding, Automative, Agrofood, Pharma. You can actively participate debating about the general…

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IE Business School invites you to live the IE experience in real-time with a member of our world-class faculty. Enjoy a case discussion with Prof. Gamaliel Martinez, Professor of Operation Management with more than 20 years of experience in consulting in industries like Shipbuilding, Automative, Agrofood, Pharma. You can actively participate debating about the general…

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Students from IE Business School, Universidad Complutense de Madrid and Hamline University have won the second edition of JPMorganâ??s Good Venture Competition. The competition focuses on developing philanthropic non-profit organisations. This year 77 socially responsible teams from 48 universities and business schools pitched for $25,000 of direct funding from JPMorgan. Ultimately nine teams were selected…

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FUND MANAGEMENT: Real life gets in the way of BSM certainty

The following article was published in Financial Times on December 10, 2007 and written by Pablo Triana, Director of  the Centre for Advanced Finance at IE. If you wish to learn more about our finance related programs, please visit http://www.miaf.ie.edu/.

The recent debate on the Black-Scholes-Merton options pricing model continues to make waves. Research by veteran option traders and authors Nassim Taleb and Espen Haug claims that BSM was not really an original invention, that its real-world popularity has been greatly exaggerated, and that there may be no mathematical models behind option prices, with simple supply-demand interaction claiming authorship instead.
Such bold statements, while a welcome contribution to the search for truth, may deprive us of something that seemed valuable. BSM, for all its flaws, offered quantifiable light where before there was only unknown darkness. By “losing” BSM, we would lose such certainty, albeit misplaced.
The most obvious certainty that the model offered was a precise number for the value of an option. This it did in a quite ingenious way. Everyone would tell you that an option should cost money because it gives you the right to enjoy a potentially large pay-out while limiting the possible losses if things do not go your way. But who ensures that that right has value per se? That value is supposed to come from the probability assigned to the option expiring in-the-money. So who guarantees that the probability of making money on the option is non-zero? Who can honestly claim to know the exact distribution governing financial assets? Pricing options based simply on probabilistic assumptions sounds a bit fishy.

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Thanks to China Economic Review saying “we are VERY MUCH INTERNATIONAL in spite of Spanish origin”

12月4日China Economic Review发表了题为FT puts IE Business School at No. 5 in Europe 的文章。 值得一提的是,文章强调IE商学院虽然发源于西班牙,但却是一所非常国际化的商学院,教学机制和运作与北美商学院类似。作为IE的校友,对这位老记第一次这么大声地在中国媒体为在西班牙的IIE挣“international”的名份,惊喜之情难以言表。 以下是全文,以飨诸君。 IE Business School (the IE stands for Instituto de Empresa showing its Spanish origin but it is very much a Business School in the American tradition) is ranked No. 5 in Europe and No. 1 in Spain in the latest…

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Dual Degree in Logistics with MIT

In todayâ??s business environment, companies must produce innovative products at a low cost and effectively deliver them to customers around the world. Globalization has driven supply chain management and logistics to the forefront of business strategy and created the need for a new kind of business leader. In recognition of this development, IE Business School…

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