The people working in the drug trade are a prime example of this. Farmers are paid only $100-200 to process cocaine that is shipped to, and sold in the United States, for millions of dollars. $100 is a lot of money to these farmers and they are completely unaware how much what they make is being sold for. Colombia’s economic development has seen an increase in the last two decades. However, it has come at a great cost. In the late 1990’s major companies moving into Colombia looking for a cheap labor force ran into problems with the unions.
However, the Colombian military had an answer for this. Government controlled death squads were dispatched by the government to get rid of anyone that was outspoken against the government’s actions or the companies moving in. “Over half the trade union leaders murdered in the entire world in 1997 were located in Colombia. ” (Hermann, Zarate-Laun. 1999). Farmers have been pushed off of their land as logging, mining and oil companies moved in. This led to one of the increases in pollution. The pollution came from the burning of the rain forests.
The rain forests are being burned at a rate of 1 ? acres every second. While the companies moving in are creating jobs for the locals they are causing greater problems in the loss of animal habitat and land for indigenous tribes. “Rainforests once covered 14% of the earth’s land surface; now they cover a mere 6% and experts estimate that the last remaining rain forests could be consumed in less than 40 years. ” (The Disappearing Rainforests, 2010). The pollution has also been a problem in the urban areas as well.
Coca-Cola opened bottling plants in Colombia when they expanded their operations into South America. This meant that more people would be commuting causing more pollution. This pales in comparison to the pollution produced by the plant itself. In most developing countries pollution is one of their least concerns. As in Colombia, the government and the workers were so happy to be working the pollution created was overlooked. While this pollution has been one of the negative effects on Colombia and its citizens the jobs it has created has given them a higher standard of living.
This is one of the great debates regarding markets in emerging countries. Is working long hours for a menial wage better than not working at all? Pollution has also increased as more people have moved out of the jungles due to the increasing danger from para-military groups and the drug trade. This migration into the cities has put a strain on public and social services. As more people move into an area the crime rate will go up and those that have migrated from other countries looking for work may be taken advantage of.
All of this will put a much greater strain on the police force. The increased pollution will also begin to put a strain on hospitals as more people present with health problems associated with the increased pollution. Colombia, like any other country, has made trade agreements with other nations. However, the United States has yet to approve an official trade agreement. “The United States-Colombia Trade Promotion Agreement (CTPA) was signed on November 22, 2006. Colombia’s Congress approved the CTPA and a protocol of amendment in 2007.
Colombia’s Constitutional Court completed its review in July 2008, and concluded that the Agreement conforms to Colombia’s Constitution. The United States has not yet approved the TPA” (Colombia, n. d. ). Even though there is no formal agreement in place trade between the U. S. and Colombia is bigger than ever. In the 1990s the U. S. gave Colombia temporary trade preference. In 2002, this preference was expanded to Colombia’s textile markets. The Andean Free Trade Agreement exists between Colombia and Peru in order to promote free trade between the two nations.
Under President Evo Morales, Bolivia refused to join the agreement. Attempts were made in 2003 to expand the North American Free Trade Agreement (NAFTA) into the Andean region but failed. Regardless of the agreements in place trade exists between South American countries. Whether through formal agreements or the government turning a blind eye it continues. Colombia, unlike countries like India, has not seen a great deal of outsourcing from foreign companies. One of the major problems with outsourcing is that the parent company generally moves people to the area to set-up operations.
In Colombia these people become prime kidnapping targets for the Revolutionary Armed Forces of Colombia (FARC). Until the Colombian government is able to get better control, or negotiate a truce with the FARC, foreign businesses will continue to be hesitant to move operations to Colombia. This will continue to have an impact on the nation’s economy. While present, technological advance in Colombia have been slower than other developing/emerging countries. The largest area of advancement has been in telecommunications.
Discussion:Aminah MGT 201
In chapter 5 , we discussed the importance of understanding the immediate environment surroundin the focal firms. In that matter, SOWT analysis can be used by defining organization`s the strengths , weaknesses , opportunities , threats.
In this discussion, you are required to choose a company whether it is local or international ( Saudi Companies are more desirable) , apply SOWT analysis by using your critical thinking , and what we have covered in the class.