Contry Analysis of Colombia

Topics: Investment, Foreign direct investment, Illegal drug trade Pages: 4 (1474 words) Published: March 5, 2013
Assignment 1: BUSI 2701D

Business Report – Country Analysis of the Republic of Colombia

Executive Summary
Although the Republic of Colombia’s economy is growing, the costs and risks outweigh the benefits of expanding foreign operations within this country. Getting into a free market economy that is just beginning to grow, with a 5-6% GDP increase per year, is a great investment and Colombia could have a vast market in tourism considering its climate. However, their economy is still not ready for major investments. An increase in education, healthcare, infrastructure and overall quality of life would allow the residents of the country to become more innovative and specialize in certain skills. Before any company should invest in this country, the government especially needs to control the violence and drug trafficking. Even though the country has seen a decrease in these areas, I do not believe any company should put a substantial amount of money into this country with these risks. Country’s Macro Environment 25.5/40

The Republic of Colombia is unfortunately a very poor country, with approximately 45.5% of the population living in poverty and unlawful conditions, the government still continues to struggle with income disparities and insufficient social services available. Corruption has been an ongoing battle for Colombia, especially as they are mostly known as one of the world’s largest drug trafficking countries. In 2008, Colombia was said to be responsible for close to half the world’s production of cocaine, however, in recent years, Colombia has seen a 57% decrease in cocaine production. There had also been violence from a four-decade long conflict mostly against the Revolutionary Armed Forces of Columbia (FARC), a group primarily funded by the illegal drug trade. Although there are still attacks against civilians and areas of the country are under FARQ influence, they do not have the proper military or support to take over. To aid the economy,...
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