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Investment In Colombia

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Introduction
The purpose of this paper is to analysis the feasibility and risks of a United States foreign direct investment (FDI) into the country of Colombia based on the major current social/cultural, political, and economic environments

Cultural Environment
Cultural Climate Colombia is a Latin American country that has a population of 47.5 million people. The primary language spoken by the people is Spanish and they are a Christian country. Colombia is “The fourth largest country in South America and one of the continent's most populous nations, Colombia has substantial oil reserves and is a major producer of gold, silver, emeralds, platinum and coal.” With these natural resources, the country is ripe for business. However, there is a large drug cartel presence that is a barrier to business success in the country. The country is a large producer of the coca plant which is used to make cocaine. There are “64,500 farming families living off of coca”. The growth of the plant takes place in the remote areas of the country and there is no state regulation of the growth of the plant. The drug cartels use the money made from producing this cocaine to fund a guerilla army that fights against the state when they try to take a …show more content…

186). The Andean Group is also working towards standardization of legislation regarding foreign investment, trademarks, royalties, and the like (Higgins and Higgins, 1979). FDI in Colombia began to increase with the creation of a national FDI-promotion agency, the Colombia Investment Corporation which later merged with Proexpo (Hudson, 2010, p. 187). The United States currently funds the majority of the Foreign Direct Investments in Colombia. In 2011 $15 billion dollars were invested in Colombia via FDI’s due to their economic stability (Embassy of Colombia Washington D.C.,

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