globalEDGE Newsletter

January 2008
Vol. 7 - Issue 1

Inside This Issue

  1. Featured Country: Colombia
  2. Poll Question
  3. News
  4. In-Depth Look
  5. gE Business Review Featured Article
  6. Featured Sites
  7. Featured Academy
  8. Newsletter Information

1) Featured Country: Colombia

Once a tightly controlled economy, Colombia has since evolved into a free market bastion in Latin America. A slew of deregulation policies in the early 1990s kick-started an era of economic liberalization in the country, which saw dramatic tariff reductions accompanied by increased privatization. This relaxation of stringent trade restrictions has invited considerable foreign investment into Colombia, with the United States as one of its major contributors. Perhaps aided by industrial diversity and prudent fiscal policies, the country has never experienced any severe economic crises. Conversely, it enjoys constant growth at a rate of 5.1% (2005 est.), and a steady decline in unemployment, from 15.1% in 2002, to 11.4% in 2006. This, coupled with drastic improvements in security, makes Colombia an attractive global business destination.

Learn more about Colombia on globalEDGE Country Insights.

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2) Poll Question

This month's poll question is:

"Should legislation be passed implementing the U.S.-Colombia Trade Promotion Agreement?"

Please click a choice below to vote. You can also vote at our home page.

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3) News

Colombia to Invest $342 Million in Ethanol Plants
Reliable Plant Magazine (January 7, 2008)
http://www.reliableplant.com/article.asp?pagetitle=Colombia%20to%20invest%20$342%20million%20in%20ethanol%20plants&articleid=9878
A new plan released by President Uribe calls for investment into facilities capable of producing 300,000 liters of ethanol per day. Social benefits of the plan include the employment of 1,500 former refugees.

Chávez, China Cooperate on Oil, But for Different Reasons
The Christian Science Monitor, by Sara Miller Llana and Peter Ford (January 3, 2008)
http://www.csmonitor.com/2008/0103/p06s01-woam.html
China and Venezuela complete a $4 billion oil deal, allowing the Chinese to explore in Venezuela's Orinoco region. Venezuela will also increase shipments of oil to China and construct three refineries in China. Chavez views this as a blow to US hegemony, while China sees the investment more pragmatically.

US Business Chiefs Urge Congress on Colombia Trade
Reuters, by Doug Palmer (December 11, 2007)
http://www.reuters.com/article/companyNewsAndPR/idUSN1156152320071212?pageNumber=1&virtualBrandChannel=0
CEOs of the largest US based corporations lobby Congress to pass a US-Colombia FTA arguing it would improve ties, benefit both countries economically, and provide more stability in Colombia. The opposition urges Congress to wait another year to place pressure on President Alvaro Uribe to end violence against trade unionists.

View more News on globalEDGE.

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4) In Depth Look

Extreme Investing: Inside Colombia
BusinessWeek, by Roben Farzad (May 28, 2007)
http://www.businessweek.com/magazine/content/07_22/b4036001.htm?chan=search
In recent years Colombia has seen strong GDP growth while lowering both inflation and unemployment. Despite this positive economic news, the country has not been able to shake off its image as a haven for drug lords and criminals. A closer look into the cities and businesses of Colombia reveals safer streets and more efficient businesses. These improvements have increased confidence among both investors and consumers, though the economy as a whole remains fairly volatile. The mixed signals Colombia is sending paint an unclear picture of the nation's future as an economic hub for Latin America.

'What Are You Giving Away?' The Challenges of Marketing in Asia
Knowledge@Wharton (January 9, 2008)
http://knowledge.wharton.upenn.edu/article.cfm;jsessionid=9a30a33f7d485f592031?articleid=1872
Foreign marketers working in Asia have often been confused by the dissimilarities between Asian consumers and their Western counterparts. Traditional notions of brand loyalty are seemingly non-existent in Asia, creating headaches for marketers wishing to gain faithful customers. To add to the confusion, general patterns of consumer behavior vary drastically from city to city. To operate successfully in Asia, marketers must have a good understanding of their target market, and understand consumers' perceptions of their brand.

View more In Depth Look articles on globalEDGE.

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5) gBR Featured Article

Running a Global Corporation
By Tomas Hult (Volume 2, Number 1, pp. 1-3, 2008)
http://globaledge.msu.edu/newsandviews/businessReviews/gBR2-1.pdf
Executive Briefing: What does it take to run a global corporation? Are there too many environmental and industry forces to think about? What about the strategy and organizational factors? No worries, it can all be paired down to a manageable few.

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6) Featured Sites

This month's Featured Sites:

Colombia: Bogota Chamber of Commerce
http://camara.ccb.org.co/ccbingles/portal/default.aspx
The Bogota Chamber of Commerce supports the entrepreneurial sectors and collaborates with the Colombian national government in the regulation of the business community. Civic and social programs aim to improve the quality of life in Bogota and Cundinamarca. Site includes sections on strengthening business, dispute resolution, and social/cultural programs. English version is somewhat limited but full site is available in Spanish.
Category: Research: Organizations
Country: Colombia

Colombia: Proexport Colombia
http://www.proexport.com.co/VBeContent/home.asp?idcompany=17
Proexport Colombia contains valuable trade information for foreign importers and domestic exporters, mainly about Free Trade Zones in the area. The section for foreign importers is in English, while the section for domestic exporters is in Spanish.
Country: Colombia

WTO: World Trade Report
http://www.wto.org/english/res_e/reser_e/wtr_arc_e.htm
This annual publication by the World Trade Organization summarizes the current state of world trade and global trade policy. Each year, WTO focuses on new developments in world trade or a current issue affecting the world. Report is available for download in complete form as well as by chapter or section.
Category: Publications

View recently added sites on globalEDGE.

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7) Featured Academy

Virtual Developing Country: Zambia
http://www.bized.co.uk/virtual/dc/index.htm
Virtual Developing Country takes users on web-based, virtual tours of Zambia, and its journey as a developing African nation. The exercise is conducted in a manner similar to a guided field trip. It also provides background information about the nation, as well as resources for both teachers and students.
Category: Course Content: Exercises & Simulations

View more Academy Resources on globalEDGE.

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8) Newsletter Information

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