Project in colombia Essay Example | Topics and Well Written Essays - 1000 words

Project in colombia - Essay ExampleHowever, since 20110, the ethnic and policy-making violence has significantly reduced thereby developing a business environment. The United States entered the bare disdain agreement with Colombia in an attempt to develop the previously small economy thereby possibly creating rough stability. The agreement that allows both Colombian and the Statesn nationals ease of movement mingled with the two countries has so off the beaten track(predicate) benefited both countries. Colombia produces cotton and is a great exporter of the same to the United States. The free trade agreement allows for the unregulated growth of the resources in the two countries by nationals from either country. While the country exports such large do of cotton, she still suffers from massive levels of unemployment with the rate estimate at ten percent. It is consequently in the spirit of the free trade agreement that the come outs seeks to set up a textile guild in the re public of Colombia. The project is likely to benefit Colombia in a number of ways while the investors target a veritable profit margin. With an unemployment rate of ten percent, it is more probable that Colombia has cheaper labor than the United States, the company will therefore solicit the readily available labor, coupled with lower rates of cotton in the country and the company is more likely to make great profits. The free trade agreement protects the investments of nationals from either country in case of any insecurity incident. Additionally, to obtain better protection the republic of Colombia has a number of restitution company most of which are American based offering American tariffs in the country (Pickton & Broderick, 2005). The victor of the bilateral trade between the two countries relies on their efforts in upholding the terms of the agreement. The agreement benefits both the countries and they subscribe to it owing to its lucrative nature and the possibility of d eveloping the countries. In the spirit of the country, the two countries have good tax schemes to investors and goods produced in either country as though are in the mother country. This prevents exploitation of investors. Additionally, it prevents the mistreatment of foreign nationals in the countries. The Americans therefore access Colombia markets as though Colombians and vice versa. Additionally, the countries should coexist peacefully. Peace favors investments consequently growth. Inter country squabbles destroy the diplomatic relations between countries thus stunts growth and creates animosity between the countries thereby eliminating any business possibilities (Bahreini, Willis & Primack, 1988). The American textile industry therefore has a number of winner possibilities key among which is the effective management of the available resources in the republic of Colombia. With readily available cotton retail at the local market value and cheaper labor, the company is more like ly to make more profit. In setting up in Colombia, the company forgoes the cotton transportation and importation duties. Besides, the country has reliable besides cheaper electricity a fact that implies that producing the textiles in Colombia is cheaper than a similar production in the United States of America (Petrickv& Quinn, 1997). To maximize profits, the company should access both the