One of the major political changes that paved the way for the expansion of Telefonica globally was the deregulation and privatizations carried out by the government. The political environment in Latin America and Europe was limited to a certain degree of trade restrictions. Besides, there was also a strong presence of political stability in the areas where the company expanded its markets. It is also clear that Telefonica took advantage of foreign trade policies and adjusted its marketing policies to respond to their legislation.
Furthermore, from Spain to the other nations where Telefonica expanded, several economic factors were critical to its fast growth. One such factor was the economic growth levels that were high in Latin America, Brazil, and Argentina. Besides, businesses and consumers in those regions, due to their disposable income, could spend on its services and sell their companies to Telefonica.