Colombia

Colombia

Introduction

Colombia's overview will be focused on its political system, monetary system, economic system, as well as its natural resources, because with these things combined it will help guide this investment. Colombia is located in South America, bordering the Caribbean Sea, between Panama and Venezuela, and bordering the North Pacific Ocean, between Ecuador and Panama, which gives accessibility to ports for imports and exports opportunity. The country shares borders with Brazil, Ecuador, Panama, Peru, and Venezuela. Colombia territory is 1,138,910 square kilometers and population is 45,239,079 as of July 2012 noted by the Central Intelligence Agency. Colombia's official language is Spanish, religious practice Roman Catholic, and major ethnics groups are mestizo, white, mulatto, and other smaller groups. The political system is republic which originated from Chilean civil law. The President and head of government is Juan Manuel Santos Calderon, and Vice President Angelino Garzon. The political system is similar to the United States. The president and vice president are elected by popular vote for a four-year term (eligible for a second term) and Colombia election was last held on 30 May 2010.

Central Intelligence Agency states “Colombia's consistently sound economic policies and aggressive promotions of free trade agreements in recent years have bolstered its ability to face external shocks”. The gross national income growth rate has shown constant long run growth over the last 5 years. The gross national income records in US dollars are 2347.3 in 2000, 3281.4 in 2005, and4894.7 in 2009 (UN Data, 2013). The latest gross national income as of 2011 is 6070 US dollars which shows a spike in Colombians income once again (World Bank, 2013).

The globalization of markets affords our company the opportunity to increase revenues by tapping into a new market location in South American. In the past, the US and European economies lead the way in economic growth, while Latin Americans struggled to maintain stability within their economies. The US and Europeans markets suffered a drastic decline during periodical recessions from 2001 to 2012, causing a reduction of the monetary value and Foreign Direct Investment for US and European countries. Within the past 10 years, countries in South America have seen economic prosperity. In the article “South America Economy” published 2010 website EconomicWatch.com notes “Although South America has not escaped the economic crisis of 2008-2009…”, and “The rate of recovery is projected to be significant in 2010, as trade with China and the US is expected to reach massive proportions. Also, countries such as South Korea, Vietnam, Russia and India are targeting Latin America as a viable investment and development proposition”. In addition, the article focus on South America leading countries Argentina, Brazil, Chile, Colombia, and Peru which states “Colombia's economy is known to encourage free markets and private participation. Being a key foreign investment destination for the US,” (EconomyWatch.com 2010). The opportunities for Bar Construction Company will be endless, by having a foot hole in the new market empire. Bar Construction Company should acquire a construction company in Colombia via Foreign Direct ...