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So, a result of the crisis was that Spain decided circumstances had changed such that foreigners' cash was needed less than before? Your facts may be right (I
by lovemenot 10y ago
So, a result of the crisis was that Spain decided circumstances had changed such that foreigners' cash was needed less than before?
Your facts may be right (I don't know) but if so, Spanish authorities made a basic economic error in that decision.
- edu 10y agoNo, businessmen realized it's more profitable to process the olives and sell the oil than just selling the olives.
- zb 10y agoNo, you make more money exporting value-added products (like olive oil) than raw ingredients (like olives). Basic economics says you want to move higher up the value chain, and that's what (I'm told) they did. Of course this caused further problems for Greece and Italy, which were already not in good shape.