Economic External Factors:
Companies need to always take a close look at the external asset now that his one is the one can give a firm threats and opportunities, but to have a good idea of what is happening in the external environment is very important to look at all the variables this contains and how at the moment it can help or affect the various industries and companies including ours and the competition
National Government budget deficits
As seen in the chart taken from the web page “trading economics” the government budget deficit in the last 2014 was in -2.4% this means that the government investment has decreased over the past years now that for example in 2010 the budget deficit was of -3.9%, in 4 years the budget deficit has decreased in about 1.5% showing that the government is decreasing investment and even is decreasing its subsidies for example in the industry of food. If we take a look at the article published by “portfolio” which interviewed the minister of estate Mauricio Cardenas in June of 2015, he said that the deficit for the last trimester of 2015 was going to grow to a 3%, this means an increment of 0.6% from 2014. This gives the brief conclusion that the government is staying in a deficit between the 2% and the 3% that is going to maintain a stable economy and sometimes a decrease on government spending.
http://www.tradingeconomics.com/colombia/government-budget
http://www.portafolio.co/economia/deficit-fiscal-colombia-2015-cardenas-ministerio-hacienda
Gross domestic product trend
As seen in the trending graph published by “world bank” The GNP in Colombia for the last 8 years has had a constant increasing except for the small flop in 2008 caused by the global recession, after this there has been a quick recovery and incrimination until 2013 when it stayed constant with the 2014 GDP which shows that the value of production and value is staying constant with a value of “377,7 million thousand dollars” in a good equilibrium level, this is good news for new companies and for general industries now that they have the opportunity to have a solid market. In the web page of the “DANE” It talks that the “GNP in the third trimester of 2015 incremented by a 3,4%” so this means that the growth is happening by in small scale maintaining the GNP of the country in a constant economic growth.
http://datos.bancomundial.org/pais/colombia
http://www.dane.gov.co/index.php/cuentas-economicas/cuentas-trimestrales
Consumption patterns
Consumption patterns found on web page “iisd” states that greater attention must be given to consumer decision on worldwide standards of production and consumption, also states that any pattern of industrialized countries must not have an adverse impact on the prospects of developing countries. This shows that Colombia is having a natural trend in consumption pattern now that the production and consumption are still in a constant level. Looking at the web page “Euromonitor” which shows the patterns of a certain industries in a specific country, Euromonitor talks about natural food sales growing in a 12% concentrating a lot in middle income consumers and also high income consumers. This also generates by the increment that the country has had in consumer purchasing power allowing health products and general products and industries to have a growth of consumer power
http://www.iisd.ca/vol05/0545003e.html
http://www.euromonitor.com/naturally-healthy-packaged-food-in-colombia/report
Unemployment trends
In the web page of “trading economics” it can be seen first the graph of the past five years on how the unemployment in Colombia has behaved, it can be seen that it is an unstable chart no that I has declined since 2011 from 14% to today to an 8% but it goes upwards and downwards showing two things, the first is that new employment is being created now that new industries open or new work possibilities appear but second, when unemployment goes up it show that the number of closing companies and informal jobs is also rising creating an unstable unemployment chart. It can be seen in the chart of 2015 unemployment began with a 10.3 % and it finished with an 8.6% assuring that nowadays it is going down. In The source of “DANE” it states that during October and December the unemployment rate stayed on an 8% staying just like 2014 also being the lowest for the past 15 years. This assures that unemployment is decreasing and because of this finding good employees with good capabilities will be hard now that the industry is opening a spot for the unemployed.
http://es.tradingeconomics.com/colombia/unemployment-rate
http://www.dane.gov.co/index.php/mercado-laboral/empleo-y-desempleo
Money Market rate
According to “Davivienda”, the bank of the republic opened a quota of 6 bn pesos and the system required 85% of this, the bank of the republic states the same also in a document saying that that majority of the participants in creating monetary market are the same banks, Also in the Bancolombia erb page it is offered types of Repos short term and simultaneous.
http://www.banrep.gov.co/sites/default/files/publicaciones/archivos/re_149.pdf
Shift to a service economy in Colombia:
Services industry employment began leveling off with the onset of the 2001 recession. Growth began accelerating again in 2004, but the rate of growth was well below what we saw in the 1980s and 1990s. Services employment hit its all-time peak in January 2008, the second month of the Great Recession. Services employment is slowly improving, but it remains about 2.6% below the 2008 peak.
Availability of credit:
This factor we can consider that is really important in terms of financial productivity and financing needs, in this case related to small business (as we are starting now in the industry) is very useful to identify patterns of small business financing. By the other side it is so important to take into account that financing flows to small bussiness is a primary factor, that it would determined when a financial crisis or recession is showing on the moment. One example of the different type of resources that financial activity offer is: the credit cards that can supply or work like an alternative to paying expenses by cash or check if a business pays balances on time. They can also be a “substitute for traditional forms of credit when balances are carried month to month. Survey evidence from earlier periods suggests that credit cards are used primarily for convenience”, for that reason is important to recognize the risk that it could be that can bring good management if lla is not made and maintained a balance to cover debts in a proper way.
Level of disposable income:
Take into account the current performance in the industry position, it is considered significantly important for this sector, since it determines an “individual's ability to purchase goods or services. It is calculated by taking income earned from all sources (wages, government transfers, rental income etc) minus taxes, savings and some non-tax payments (e.g. fines, forfeitures and donations) and dividing by the total US population”. At the following we can see the previous chart that indicate the disposable income
Propensity of people to spend:
This factor envolves all the raises in pay that a consumer could be spend on goods or serices, contrary as saving it incomes, it means that in some times people dicide to spend they extra cash, so when it happens industry have the ability to produce more and start satisfyinf needs and wants, toward it in additional spending. So we can find higher for low-income families than for high-income families depending the actual behaviour inside the industry.
Interests Rates:
In this case, refering on interests rates we know that many companies hold their customers' cash in accounts that pay out set interest rates below short-term rates. They profit off of the marginal difference between the yield they generate with this cash invested in short-term notes and the interest they pay out to customers. However, when rates rise, this spread increases with extra income going straight to earnings. This would appears when organization need to apply some things to provide more opportunities of service and demand related to satisfy customers in all sense.
Inflation Rates:
Actually the inflation rate could be appreciate and analyze basis on the latest inflation rate for the United States is 0.7% through the 12 months ended December 2015 as published by the US government on January 20, 2016. The next update is scheduled for release on February 19, 2016 at 8:30 a.m. ET. It will offer the rate of inflation over the 12 months ended January 2016.
Following we can analyze the basic chart that demonstrate de inflation:
http://www.usinflationcalculator.com/inflation/current-inflation-rates/
Monetary polices
The Central Bank is in charge of directing monetary policy, is directed by a system of inflation targeting, where your goal is to achieve and maintain a low and stable rate of interest and so the stability of the value of money remains . And so if it can maintain a high economic growth that could generate more employment opportunities for people and improve the standard of living of the population. The monetary policy decisions are made based on the analysis of the current state
Representative exchange rate market: 3326.82
Term deposit - effective rate: 5.87%
Intervention rate bank monetary policies of the republic: 6%
Monetary policies can affect the industry because if the stability of the value is not maintained can get to be affected the transmission mechanism which leads to inflation in the country
http://www.aldiaempresarios.com/
Price fluctuations
the growth rate of long-term consumption per. Capita have increased between 0.13 and 0.47 percentage points, from 1.4% a year in the fluctuating scenario, at a rate in the range 1.53% -1.87% per annum.
Price fluctuation regarding the exchange rate is also generated, this rate of change measures the amount of pesos paid for a currency, in this country the most important currency is the dollar. This exchange rate may fluctuate depending on supply and demand
This can affect our industry in the sense that the price fluctuation means increased costs and buy more expensive touch it takes to develop our work
http://www.banrep.gov.co/es/contenidos/page/qu-tasa-cambio
Income differences by region by region and consumer groups
We can see that the incomes are generated mostly in Bogota, Antioquia, Meta, Santander and valle, therefore these regions are the major contributors to GDP in Colombia.
Demand shifts for different categories for goods and services
Changes in consumer incomes produce a change in the demand for a good or service.
When income increases consumer demand for products as well. When consumer preference and varies also changes in demand, you can also change if the future price of a good changes. If you expect the price of a good increases, the current demand for that good will increase.
In 2014 there was an increase of 3.66% on goods and services in the basket of the Superior Colombian households in 1.72 percentage points than in 2013
'' In 2014 three groups are above the national average (3.66 percent): Food (4.69%), education (4.12%) and housing (3.69%). The other groups were below average: Health (3.46%), Transport (3.24%), Fun (2.81%), Communications (2.30%) Other expenses (2.21 %) and apparel (1.49%).
In subgroups with higher food price increases were for: tubers and plantains (36.21%), fruits (13.16%) or vegetables (9.32%).
Education subgroups with higher price increases were for: instruction and education (4.48%) and students (1.85%) articles.
In subgroups with higher housing price increases they were for: gas and utilities (6.92%), occupancy cost (3.04%) and cleaning articles (1.90%). '' (El Tiempo, January 5, 2015)
Export of labor and capital from Colombia
according to the Ministry of Foreign Affairs, out of Colombia live five million Colombians, which is roughly equivalent to the total population of Bogota in a position of vulnerability against the national and international legislation.
According to the United Nations Colombia have about 216 million people classified as migrants and 60% of them are part of the workforce. For the local case, there are four million Colombians abroad and more than 120,000 foreigners working in the country (The viewer, July 3, 2012)
In the first half of 2014, about 487 000 879 Colombians left their country in search of a better quality of life and work, according to figures from the Foreign Ministry of that country.
migration was mainly due to economic factors, employment prospects and increase revenue besides being able to get a better quality of life.
http://www.telesurtv.net/news/Colombia-el-pais-suramericano-con-mas-emigrantes-20150223-0029.html
http://www.urosario.edu.co/urosario_files/c5/c5202afa-b5f1-40f2-b49b-326f9eea5c9e.pdf
Worker productivity levels
The term productivity contains a number of definitions, there is a general consensus as to label it as the efficient use of production factors, either of labor, physical capital and / or human capital (Dinero, 2015) .Regarding to labor productivity, each individual part of the industry, in which its workforce is one of the most important for obtaining any kind of objective resources; They are a vital part of any organization.
In Colombia, despite its dynamism in the economy in recent years, and the historic development of the labor market, the country suffers from stagnant levels of competitiveness. One of the main reasons for this lag, and recently captured the attention in public policy debates, is the prevailing low level of productivity in the country. 21 million Colombians employed workers are overwhelmed with long working hours and usually speak of a heavy burden of compliance activities. However, the effort does not match the productivity of the country, which ranked 66th among 144 countries, after the latest measurement carried out by the World Economic Forum. (Machego, 2014)
According to estimates by Rosario Córdoba, president of the Privy Council on Competitiveness in Colombia 4.5 workers are needed to perform the same work activity that makes one American employee. Regarding the labor market, according to the Monthly Survey of Manufacturing, the indicator of labor productivity of the Colombian industry just presented an annual increase of 2% in the first half of 2008 and its 2013 counterpart. (Dinero, 2015). Keep in account the need to start taking action against these cases, because otherwise, the effort made by each worker will be in vain; It is noteworthy that the poor performance is also influenced by the lack of a living wage and different situations such as transportation and travel time to the job site (some workers may spend two to five hours).
Despite these good and sustained winds of the Colombian economy and the labor market, productivity, which is the determinant of the structural behavior of economic growth and wages, it has been stagnating. (Dinero, 2015)
Dinero. (28 de Enero de 2015). Dinero. Recuperado el 5 de Febrero de 2016, de Dinero: http://www.dinero.com/pais/articulo/productividad-laboral-colombia-mas-bajas-america-latina/205142
Machego, M. M. (27 de Septiembre de 2014). El Tiempo. Recuperado el 5 de Febrero de 2016, de El tiempo: http://www.eltiempo.com/economia/sectores/baja-productividad-en-colombia-/14603116
Value of the dollar in world markets
"The US dollar is the world reserve currency and the presence of traditionally strong currencies such as the euro, yen, pound sterling and Swiss franc, which often becomes a refuge in times of turbulence is maintained. The presence of emerging markets reflects the changes we have seen in the global economy. The dollar is still the most used (44% of transactions) currency." (Justo, 2013)
In the last twelve months the Colombian peso has depreciated 42% against the dollar so far this year 22.4%. The currency reached a historic price of $ 3238 and many expected to continue for long, however, it did not. For analysts, the volatility of the dollar will continue on behalf of the decisions or not the Federal Reserve and the direction of oil prices. (El Paìs, 2015)
The rise in the dollar has happened to a bulging business costs bill. The situation is complicated depending on how you are indebted in that currency, especially now that the currency is no ceiling. Companies that have debts in dollars have seen a sharp rise in the cost of its obligations.
"The trouble is not that the dollar is at $ 1,800 or $ 3,000, but it moves so fast that the company can not react in time. If we knew that the dollar weight changes every day, the company could be adjusted. But varies from one day to another $ 30, $ 40, $ 60 or more come tumbling all projections and that unsettles any cash flow, price list or commitments, "explains Luis Fernando Vanegas, Head Trader of CorpBanca – Helm. (Gomez, 2015)
Companies must establish plans or strategies to appease the change in the dollar so that the damage can impair such growth does not affect a large proportion of their money. Companies have chosen mechanisms available in banks and brokerages, such as forwards, swaps, options and standardized derivatives.
In the Sura Group, 43% of the debt is in dollars, specifically a bond issue abroad.
Ignacio Calle Cuartas, vice president of Corporate Finance Group, explains that "in 2012 we structure coverage to eliminate the effect of exchange rate that could eventually result from the payment of coupons. The instrument used is a Cross Currency Swap, which allows us to eliminate the effects of the volatility of the exchange rate on the quarterly flows ". (Gomez, 2015)
While many companies yet to adopt hedging mechanisms in the market are offering banks and brokers, with instruments such as options, swaps, forwards and derivatives, which are contracts in which a future exchange rate is agreed. Hernán Alzate, vice president Proprietary Position of Bancolombia, explains that "the type of hedging instrument used reflects the risk profile of the customer; therefore the strategy to run must meet the particular needs of each company, after analysis of its net foreign exchange exposure.” (Gomez, 2015)
El Paìs. (2 de Noviembre de 2015). Recuperado el 5 de Febrero de 2016, de El Paìs: http://www.elpais.com.co/elpais/economia/noticias/rumbo-tomara-precio-dolar-2016
Gomez, L. (16 de Marzo de 2015). Portafolio. Recuperado el 5 de Febrero de 2016, de Portafolio: http://www.portafolio.co/economia/alza-del-dolar-afecta-las-empresas
Justo, M. (9 de Octubre de 2013). BBC Mundo. Recuperado el 7 de Febrero de 2016, de BBC Mundo: http://www.bbc.com/mundo/noticias/2013/10/131009_economia_moneda_dolar_estados_unidos_mas_utilizada_ap
Stock market trends
In Colombia, the stock market since its inception has had several transformations, which has benefited the exchange of information, allowing the integration of Colombian companies to this market. With the Stock Bogota, Medellin and Occidente, Colombian companies began to integrate benefit the national economy. However, this regional difference produced information problems, which led to arbitrage opportunities.
Therefore, it was thought the unification of these three bags, which concluded giving rise to the Colombia Stock Exchange. Given the new challenges for the domestic market, after the unification of the bags, transactional systems that facilitate the exchange of information and allow for better interaction in transactions carried out were implemented. In terms of global market and taking into account the economic situation, the Colombia Stock Exchange is in the process of unification with the Lima Stock Exchange and the Santiago Stock Exchange, which will allow an expansion in existing markets for three countries and allow for diversification in terms of associated risks (IRC, 2008).
The main objective of the market is that companies and / or the government can get the resources they need to finance, make their projects and grow !. (AMV, 2012)
The trends of the stock market affect the industry in the way when there are too many companies to invest in their different projects, those that possess very weak draws or that do not draw attention to the investor, either for reasons such as lack of confidence in the who can bring profit, the stock market will prevent funding, stagnating growth and contributing to the country does not develop through these. The company is impaired markedly since members must make an economic effort to try to cope with that situation and getting more expenses than income. The activity of the market is very important for the progress and why the Constitution orders the government to defend and care, so that it works properly.
AMV. (2012). Mercado de Valores. ABC del inversionista.
IRC. (2008). Investor Relations Colombia. Recuperado el 5 de Febrero de 2016, de Investor Relations Colombia: http://www.irc.gov.co/irc/es/mercadovalorescolombiano
Foreign countries’ economic conditions
Economic conditions in other countries directly affect Colombia. For example in the case of foreign direct investment (FDI) can apparently the strongest advantages of ColombiAMV. (2012). Mercado de Valores. ABC del inversionista.a to attract FDI would be in its location and its abundant natural resources and labor. Additionally, in some measure the availability of infrastructure and human capital among the elite policy could be considered adequate. And increasingly lesser extent, the access provided to other country markets through its trade agreements could be considered advantageous, but tends to fade over time as competitors multiply yours and erode Colombia (CAN, G-3) or diluted (FTA with EU).
However, the most protruding Colombia disadvantages arise, on the one hand, the high transaction costs of operating in an institutional framework which causes legal uncertainty, lack of transparency in rules and procedures, and difficulties associated with corruption, bureaucracy, tramitomanía , countless administrative obstacles and complex legal regimes with innumerable rules and indecipherable.
On the other hand, there are problems in the complex and unstable structure of its tax system, creating uncertainty and higher tax costs. And finally, insecurity and public policy, at least until 2002.
In this context, the studies consulted stand out as comparative advantages in attracting FDI Colombia its endowment of natural resources and labor (abundant with willingness and in the well-qualified executive spheres), legislation on services, particularly public and financial (Cubillos and Navas, 2000); trade agreements with key markets, its talented human capital, its multiple poles of regional development and its strategic geographic location, suitable for export (Queen and War, 2003); infrastructure (energy and telecommunications) and transport and the average salary (Steiner and Salazar, 2001). As comparative disadvantages, studies frequently mentioned the following factors: tax uncertainty, caused by a fiscal policy with only short-term goals, which has spawned a complex system with high nominal and effective rates low and a large spread in rates ; inadequate regulatory framework for FDI, characterized by excessive and complex regulations, numerous procedures, problems of information and high transaction costs resulting from the variability in the rules; legal instability, the terms of employment (severance costs, price of overtime, "quasi-fiscal" contributions, salary costs of social security), the low degree of openness of the economy, the intellectual property regime, corruption, inadequate infrastructure (Cubillos and Navas, 2000; Queen and War, 2003; Steiner and Salazar, 2001); the law and order situation and insecurity, at least until 2002 (Queen and War, 2003; Steiner and Salazar, 2001); the inefficiency of the public sector (Steiner and Salazar, 2001) and the excessive number of procedures by international standards to create a signature (Echavarria and Zodrow, 2005, and finally the high rate of tax on corporate income (Mesa and Parra , 2006). (Fedesarrollo, 2007)
Fedesarrollo. (2007). IMPACTO DE LA INVERSIÓN EXTRANJERA EN. Bogotà.
Import/export factors
Although Colombia is a major producer of agricultural products and natural resources, the industrial sector is comparatively weak. Colombia imports a number of products that are produced elsewhere. Although the nation has oil and chemical industries, import fuels and chemicals. Colombia also imports heavy equipment and consumer goods. What Colombia's exports are agricultural products or extracted. Coffee may be the most famous export, but it is only one of the agricultural products exported by the country, it is accompanied by bananas and flowers, in addition to oil and coal. Colombia is also one of the producers and exporters of the world's largest emeralds. It also exports garments which are sewn into their clothing factories. (Poretsky)
United States is the largest trading partner of Colombia, absorbing 32.5% of exports and providing 30.6% of imports. Colombia also exports to Venezuela and the Netherlands, representing 17.2 and 4.2% of exports, respectively. It imported from many countries like the United States, China, Mexico, Brazil, France and Germany each made between April 1 and 10% of total imports. In 2009, Colombia exported slightly more than it imported, as estimated the Central Intelligence Agency, US $ 34 billion in exports and US $ 31.5 billion in imports. (Poretsky)
Factors such as imports and exports would bring serious problems; in the case of imports, domestic production would be affected by the non-purchase of various goods or services produced which in truth are of high quality but they are not valued as they should be (they are despised). Exports affect domestic products, since a large amount of good quality products is intended and those with lesser quality are put at the service of the country. Products that are imported and exported, for example when changes occur in the dollar are those who are in precarious conditions; situations where the value of the imported machinery is really expensive and very cheap imported coffee is brought into unbalance the national economy.
Poretsky, S. (s.f.). eHowespañol. Recuperado el 5 de Febrero de 2016, de eHowespañol: http://www.ehowenespanol.com/importaciones-exportaciones-colombia-info_96944/
Fiscal policy in Colombia
Fiscal policy is the use of government spending and taxation to influence the economy. According to the OECD, Colombia is the seventh country more unequal, which means that taxation redistribution by the government has not been enough in some parts of the Colombian territory. However, the Juan Manuel Santos’ administration has tried to reduce that index by investing and giving more resources to those regions.
Nevertheless, the OECD argues that fiscal policies in Colombia have been managed in a wrong way and haven’t worked as well as a tool of economic stabilization, specially thanks to a high presence of corruption and lack of transparence in the public institutions of the country, which don’t allow the resources be invested correctly.
However this is not the only variable that affects fiscal policies in Colombia. Actually, according to the Colombian Central Bank (Banco de la República), Colombian external debt has increased in the last years, thanks to the fall in oil prices; It has affected critically the fiscal policies in Colombia because the government’s budget for 2015 planned that the oil price would be of U$48, but the real price was of U$30, causing a devaluation in the Colombian peso and making that the external debt grows.
On the other hand, the Colombian ministry of Economics and public credit (Ministerio de Hacienda y Crédito público) affirms that Colombian economy will grow approximately 4.6% in 2015, which means $819, 8 of billon Colombian peso but the fiscal deficit will be of 2.2% of the GDP, but says that it won’t affect the actual fiscal policy because the government has searched for new ways of financing like selling bonds in the international marker by 2.600 million dollar and increasing taxes. Likewise, the government plans face this economic issue by implementing a program called “Austeridad Inteligente” (Smart austerity) which consists in reduce unnecessary public spends and cut the budget for other ones.
República, B. d. (2016, February 2nd). Banco de la republica . Retrieved from http://www.banrep.gov.co/es/tags/politica-fiscal
OECD. (2016, February 5th). oecd.org. Retrieved from http://www.oecd.org/eco/surveys/Overview_Colombia_ESP.pdf
Tax Rates
According to the DIAN (Departamento de Impuestos y Aduanas nacionales) and doingbusiness.org taxation rates in Colombia are:
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IVA: The add value TAX: 16%
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Financial Transactions tax: 0.4 % (Often called “Impuesto de 4x1000”)
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Patrimony tax: This tax requires the annual payment of 0.3% of the total patrimony of people with patrimony estimated over 3 billion pesos (about 1.5 million USD)
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Income tax: For foreign and national corporations is 25%.
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Real state Tax (Impuesto predial): 1%
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Fuel TAX: 6%
With information exposed above, according to doingbusiness.com, taxation in Colombia is similar to other countries in Latin America like Chile, Costa Rica or Brazil. However, is one of the countries where companies and people may more taxes and those are more expensive, which produce that investors prefer another countries like Ecuador, Peru or Panama, where taxes are lower.
DIAN. (February 5th of2016). Dirección de Impuestos y aduanas nacionales. Retrieved from http://www.dian.gov.co/
Project, D. B. (February 5th of 2016). Doing Business.org. Retrieved from http://www.doingbusiness.org/data/exploreeconomies/colombia/paying-taxes/
European Economic Community Policies
According to the European commission, those are the most important policies of the European Economic Community:
Common union and single market with a common currency called Euro. Every EU Citizenship who were born in any country member of the European Union can transit freely through the other members. Also exists a Common Security and Defense Policy and Common Customs, which means that I as a foreign citizen just need one visa to live, work, visit or invest in all the countries of the EU.
Likewise, there are Common environmental laws, which punish severally companies and people who contaminates environment above allowed levels. The punishment could include prison. Also, another policy is the European Health Insurance card that is a free card that gives access to medically necessary, state-provided healthcare during a temporary stay in any of the 28 EU countries, Iceland, Lichtenstein, Norway and Switzerland.
Another policies are Social Protection & Social Inclusion. The Europe 2020 strategy for smart, sustainable and inclusive growth sets targets to lift at least 20 million people out of poverty and social exclusion and to increase employment of the population aged 20-64 to 75%. The flagship initiatives of the Europe 2020 strategy, including the Platform against Poverty and Social Exclusion and the Agenda for New Skills and Jobs, support efforts to reach these targets.
Finally another of the most important policies are Rights at work. Every EU worker has certain minimum rights relating to: Health and safety at work (general rights and obligations, workplaces, work equipment, specific risks and vulnerable workers). Equal opportunities for women and men (equal treatment at work, pregnancy, maternity leave, parental leave protection against discrimination based on sex, race, religion, age, disability and sexual orientation). Labor law (part-time work, fixed-term contracts, working hours, employment of young people, informing and consulting employees)
Comission, E. (2016, February 5th). ec.europa.eu. Retrieved from http://ec.europa.eu/priorities/index_en
Organization of Petroleum Exporting Countries policies
Record production from the US and Canada led to the oversupply in the market in 2014 and 2015. As a result, OPEC decided to defend its market share by pumping more oil, which was similar to its actions in the 1985-86 crude oil crash. As a result, crude oil prices fell more than 60% since June 2014. The higher break-even costs and production costs of US oil and gas will push oil companies to shut down production due to lower oil prices.
OPEC. (2016, February 5th). OPEC. Retrieved from http://www.opec.org/opec_web/static_files_project/media/downloads/press_room/Tania_Constable_-__Presentation.pdf
Coalitions of lesser developed countries policies
Colombia is part of many coalitions of lesser developed countries, which goals are set common policies in their economies. One of the most relevant of those is the CELAC (Comunidad de estados Latino Americanos y del Caribe). Its main policies are focused to strengthen humanitarian assistance, cooperation during a natural disasters, culture, productive and industrial development, social development, education, finances, infrastructure, environment, customs, drugs and crime prevention.
