Globalisation in Ecuador
Globalisation is “the process enabling financial and investment markets to operate internationally, largely as a result of deregulation and improved communications". In other words. It is the process of increasing the connectivity of the world’s markets and businesses. In the last two decades this process has had a huge impact around the world. For example, as technology advances make it easier for people around the word to travel, communicate and do businesses around the world. Ecuador’s Background
Ecuador is a democratic republic in South America, bordered by Colombia on the north, Peru on the east and south, and by the Pacific Ocean to the west. Main spoken language is Spanish. However, the Native Indian Ecuadorians have their own language which is “Quichua”. Ecuador's economy has heavily depended on exporting resources such as petroleum, fish, shrimp, timber and gold. In addition, it has rich agriculture: bananas, flowers, coffee, cacao, sugar, tropical fruits, rice, roses, and corn. Ecuador’s population according to the last census is of 14 million and has an area of 272,046 km2 (105,038 sq. mi). Its capital city is Quito, which was declared a World Heritage Site by UNESCO in the 1970s for having the best preserved and least altered historic centre in Latin America. However, the biggest city in Ecuador is Guayaquil and it is where all the Economic system of the country is controlled. International Business in Ecuador.
There are excellent financial opportunities in Ecuador for commercial and foreign investors. The major businesses to be considered are: telecommunications, mining, energy programs, highways, oil, fishing, tourism as well as eco/ethno tourism, pharmaceuticals and financial services. Ecuador is a good country to do commercial business because it also has a Democratic Government and four major characteristics of advantage for international business in Ecuador:
1. International Trade/Free Zone:
a. Free trade zones with Andean Neighbours
2. Financial Benefits:
b. Investors are entitled to transfer abroad, in freely convertible foreign currency their net returns from their international investments without limits, taxes, liens or encumbrances. c. Free access to stock market and national finance system to obtain credit lines. Prices are set by the market with little Governmental intervention. 3. Labour Benefits:
d. A large number of medium and higher- skilled employees available 4. Guarantees:
e. Investment guarantees for US investors are provided by the Overseas Private Investment Corporation (OPIC). Globalisation’s positive and negative impacts in Ecuador
* Positive Impacts:
* First, improving the quality of life. Globalisation has improved many aspects. For example: Education and Medicine. * European interests for business agreements, world trade. * Opportunity to enter the global market by importing and exporting goods. * Improve of technology.
* Rising Economy.
* Negative Impacts:
* People believe that opening our market to the world could bring a serious low demand on country products because population would prefer foreigner products. * Terrorist have access to sophisticated weapons and to communicate via Internet. * Local industries are being taken over by foreign multinationals. Analysis
There are no doubts that Globalisation have been more positive than negative in Ecuador when it comes to analyse and criticism International Business. Ecuador has emerged in the world by itself thanks to the huge numbers of relevant sources Ecuador possess like: Oil, shrimp, bananas, cacao, rice, roses, gold, etc. However, this doesn’t mean Ecuador should not adopt Globalisation. If we look on the past, around 1998 Ecuador suffered a very devastating nature event which was “El Nino”. A warm current of water, is a temporary change in the climate of the Pacific...
Please join StudyMode to read the full document