International Businesses In Colombia And Its Relationship With The World Context

International businesses in Colombia and its relationship with the world context

The context in which international businesses are developed is of a fragile and changing environment, where political, climatic, cultural, legal and state of the economies of the different countries affect the decisions of the companies, in addition to the accelerated diffusionof information due to globalization and implementation of ICTs (information and communication technologies) makes it an environment that these changes are even more accelerated. It is undeniable that the human being is currently involved in a world dominated by technology and connections with other countries, communication tools such as social networks and the Internet, generates that people are informed or in the same wayDisappointing, which is why your expectations on business depends on the perception they have of the world economy, and because the conditions in which they develop are so volatile, a phenomenon per child that may seem to be, can generate by saidSituation that investors decide to use their capital in one or another specific economic activity, either at the local level or make investments in another country.

It is for these reasons to analyze the global context in which productive transactions are developed becomes a fundamental factor when talking about international businesses, thus the review of global phenomena is the main pillar of this analysis, due tothat can be clarified in more detail the consequences that they have in the global economy and therefore how they affect the expectations of companies and investors, and thus how they are reflected in their decisions.

A political, relevant and quite sound phenomenon in the media in recent years is Brexit, or the departure of Great Britain from the European Union Treaty, which would generate a change in the conditions not only policies, but also economic, commercial, cultural, migratory among others, but the most important thing is that if there is no pre -agreement between the parties, the fiscal measures imposed by the agreement would disappear for the United Kingdom, which would make more attractive to investors from other countries, butIn the same way, commercial and migratory privileges would be eliminated, increasing controls, as certificates and licenses, reducing trade and tourism between the parties. On the other hand, the consequences of Brexit can be beneficial, because the British island would have greater freedom to trade with other countries, which opens the doors to new commercial treaties, and in the case of Colombia, the conditions should be evaluatedunder which the countries traded, because once the United Kingdom leaves the European Union, the transactions of goods between countries will be affected, therefore the need for raw materials could be supplied by Latin American countries among them Colombia.

Another global phenomenon that greatly affects the environment in which investors and companies carry out international businesses, the commercial war between the United States and China, because this situation generates uncertainty about the future and tension between multinational companies, decreasingThe volume of commerce, generating a series of changes in the world context, so investors take a preventive attitude and prefer to invest their capital in their own countries, so foreign investment in vulnerable countries decreases, that is why there isA capital exit, so there is a devaluation of the currency of these countries, in addition to generating an economic slowdown worldwide, because the volume of trade in both countries is very affected,

For a country in development such as Colombia this could be beneficial, because there could be an increase in the demand for goods and raw materials to Latin American countries by the United States, in addition that imported goods of Chinese origin of Chinese originThey will arrive in the country at a low price, which is why some of these goods would enter the Colombian market to favor both producers and national consumers, it is also true that it would affect the Colombian industry because more products would enter to compete to the market to alower price, so the growth of the country can be affected due to the increase in the consumption of foreign goods, as stated by economist Anna Tuitareba;"Eurozone exports to the United States have remained constant thanks to the solid growth of the US economy, however, towards China they have declined" (Titareba, 2019).

Over time the uncertainty that has been presented against world economic growth, according to one of the latest reports issued by the World Bank, it is stated that by 2018 and 2019 world growth was projected by 3.9% but factors such as commercial tensions between the United States and China have not allowed this projectionof both luxury and necessar for the 21st century.

On the other hand, there are tensions and uncertainties with regard to emerging economy markets such as Venezuela, this type of distrust occur because in these countries certain inconsistencies have been evidenced in these countries in their fiscal and monetary policies, this triggers a “Crisis ”world in terms of investment and trust levels that could have countries with greater economic consistency.

Colombia is not very exempt from this phenomenon, it is already one of the most risky countries for investors and businessmen who would like to enter the market, this phenomenon is presented due to the precarious conditions of political and commercial trust offered by the Colombian government, in addition to thisThe devaluation of the Colombian weight and the high prices index in some products thus contributing to the world growth is not expected.

In another context, it is not surprising that Germany has been shown for long years as the engine of Europe, in the last periods of time an alert has been issued in terms of the economic slowdown through which the country is going through, this economy is characterizedBy its strength in the automotive industry, but taking into account the implementation that came with respect to the emission of automotive gases it has become a barrier to market dynamism, case that is of high interest because this one of the sectors with the mostInfluence in the GDP of the German economy.

According to the Expansion magazine, casualties have been detected in industrial production, which for the month of June of the current year presented a 1.5 %drop, a much higher percentage that was predicted, because according to studies already published the estimatedof the reduction of monthly production would be 0.4%.

The strong fall in the automotive market that for this year presents a 50% reduction in sales are forcing companies to make cuts in their expenses, mainly in salaries, therefore more than seven thousand workers who are located in this industryThey got fired. When cutting jobs, the consumption of families is directly affected, one of the variables with great weight in the dynamism of the economy and when facing such a low consumption and investment it can be affirmed that Colombia is in an economic recession accompanied by commercial tensionswhereby they are crossing two world powers already indicated above as their decisions affect both center and periphery of the world.