Columbia Business Environment

According to (Walter, J. (2006), any business worthy its salt must carry out a business analysis sack upvass before venturing into expansion plans. This often saves an organization time and resources which would be missed if the decision to expand or relocate business is not ground on sound business practices. The case below analyses the business environs in Colombia, by addressing the semipolitical, cultural, sparing, and domestic and industry analysis of the unpolished.Fin totallyy the makeup gives a verdict based on the findings of the analysis which is basically a recommendation on the economic investment options for a business aiming at venturing into the Colombian market place. Location. Colombia, neighbors Caribbean Sea, Panama, Venezuela, a intumesce as North Pacific Ocean. With a population of about 40 million plurality, the country has a dear(p) domestic market. Colombia enjoys a mixture of humours such as coastal- tropic climate as wellhead as in the easte rn plains it also has sang-froid amplylands climate suitable for agricultural activities. Political environmentMajor political parties currently include, Democratic Alliance, Liberal society, Patriotic Union, and Social Conservative Party (Kline, & Harvey, 1985). Political leaders include the president, Carlos Franco Echavarria, Antonio Navarro Wolff, Otty Patino, Carlos Alonso Lucio, Jose Fernando Bautista, Aida Abella and Dr. Eugenio Merlano de la Ossa. The country has democratic ties with the US and has embassador in the US as well as hosts an ambassador from the US. In terms of religion the people are largely roman type Catholics, which constitute over 90% of the population with other religions forming the 10 percent. currently the country is grappling with civil riots, poverty, lawlessness, depreciating currency as well as un electrostatic political environment. The country has been faced with civil engagement for the past 40 years something which has led to the displacem entum of over 200,000 people internally (Amnesty Inter issue, 2002). Currently, the presidency is from right wing and many pundits pick up predicted that, as long as he continues to favor socialist ideals, the long waited reforms particularly those addressing the plight of the poor in Columbia will continue unresolved. economic conditions.The economy is predicted to grow at a rate of 6. 1something attributable to stable domestic consumption as well as favorable surreptitious investment slip. In the year 2005 the gross domestic product was 5. 13 and a 6. 1 growth this year is appositive indicator of a favorable economic environment. The best performing sectors are trade, infrastructure and industry. Columbias GDP has been growing at a rate of 3. 1 to 3-6 in the last-place 3 years that is from the year 2004 to presently. Improved global economic environment is the reason behind a lot of economic activity universe experienced in Colombia (Bagley, & Michael, 1987).In addition, th e domestic market is growing in a sharp contrast to the impoverished people. The growth rate can be termed as encouraging with the country experiencing steadfast and predictable transmute rates, as well as low and favorable interest rates. On top of the to a higher place, the credit conditions have improved significantly as compared to the situation in the 90s. Major economic sectors include textiles, oil exploration, beverages, chemicals, cement as well as minerals like gold, coal, and emeralds (Thoumi, Francisco 1987). Labor conditions.The labor market in Colombia is ready and oversupplied. However major challenges lay ahead because of the bad labor movement conditions in that country. In a nut pound it is evident from the in stock(predicate) literature that, labor organizations are non operational in Colombia, joining trade union is equitable to courting death something which has greatly affected the labor relations in the country. On top of that, employees morale in the c ountry is on an all-time low due to the particular that, the workers in that country do not have a strong bargaining power (Peeler, &John, 1976).The situation becomes more complex due to the booking of military root words which besides being armed, seem to operate undeterred by law enforcement agencies. There have been reported numerous abductions, threats and assassinations all outright related to labor issues something which calls for great planning on the side of a foreign company wishing to invest in Colombia. The above have had a negative effect on the economic environment of the country and have been the leading causes for investors shunning from investing in the country.Besides the above named conditions of crime, there has been of late a wave of economic crime such as hijackings of shipments, ransom demand kidnappings, counterfeit goods trade, all of which have do production costs to go up due to high risks. Colombia is wide awake in regional and international organiza tions such as UN, Andean community, the Rio group and OAS (Martz, & John, 1962). The countrys political system is a democracy of bicameral congress and independent executive as well as judiciary. The biggest political parties are the Liberal and Conservative currently the president is, Alvaro Uribe.The people give tongue to their ethnic languages of their respective ethnic groups but Spanish is the official and national language, such ethnic groups and languages include Mestizo, Whites, Blacks, mulatto and Amerindian. The literacy level is very high with 91% of the population being literate which implies that skilled labor is readily available in the country. The people are known to be hospitable and seldom has there been reported animosity related to foreigners. Evidently, Colombia is not a politically stable country something which has resulted from continued guerrilla warfare as well as paramilitary activities.Urban crime rate is very high as well as the insecurity conditions i n the whole country. turpitude is reported to be very high couple with drug trafficking and all other manner of social crimes. It is correct to say that Columbia is nonpareil of the most unsafe places to invest in and so the business should dodge its expansion plans in Colombia and perhaps relocate to other neighboring countries with selfsame(prenominal) strategic business advantages as Columbia but less risks and therefore operational costs..