POLITICAL CONDITIONS IN FOREIGN COUNTRIES
There are some countries that have a big influence in the commercial relations of Colombia, because they may sustained some treatments of commercialization that can have a positive impact in Colombia´s economy; we have to mention that those countries have their own politics that guide those financial decisions. So we will take a close look to some of those countries that have important relations with Colombia in this sector of the industry. As is shown in the next graph
So we will have an overview of the most important countries in this industry in particular, for the Colombian market.
UNITED STATES
“President Barack Obama’s second-term efforts to expand government spending, the scope of the administrative state, and regulation have been stymied to some degree by political opposition in Congress. Yet the U.S. economy continues to underperform despite a private sector–led energy boom that has made the U.S. the world’s largest producer of oil and natural gas. Uncertain responses to foreign policy challenges, particularly concerning the Middle East, have contributed to a loss of support for the President and strong gains for Republicans in Congress and state legislatures. Political tensions related to racial, religious, and social issues have increased over the past year.
[…] The top individual income tax rate is 39.6 percent, and in the absence of comprehensive tax reform, the top corporate tax rate remains among the world’s highest at 35 percent. The overall tax burden equals 25.4 percent of total domestic income. Total government spending amounts to about 39 percent of GDP. Frontloading spending increases, the Bipartisan Budget Act of 2015 has not reduced the size or scope of government.
Labor regulations are not rigid, but other government policies, such as excessive occupational licensing, restrict growth in employment opportunities. Damaging monetary policies, tangled webs of corporate welfare, and various subsidies have bred economic distortions.
The average tariff rate in the United States is 1.5 percent. High tariffs increase the price of clothing, sugar imports are restricted, foreign investment in some sectors is capped, and use of domestically built ships is mandated for most domestic maritime transportation. Although detailed regulations have been emerging only gradually, the financial reforms adopted in 2010 have increased both costs and uncertainty.” (HERITAGE)
UNITED KINGDOM
“Following the market reforms instituted by Prime Minister Margaret Thatcher in the 1980s, Britain experienced steady economic growth throughout the 1990s, but government spending grew significantly under successive Labour governments in the 2000s. In 2010, Prime Minister David Cameron’s Conservative–Liberal Democrat coalition government made shrinking state spending the core of its economic policy. In May 2015, the Conservatives won an outright majority. Since 2010, the U.K. has experienced the strongest growth in the G20 thanks to the performance of its three main economic sectors: services, manufacturing, and construction. Unemployment is at a six-year low, and retail sales are robust. Euro-skepticism is on the rise in the U.K., and the new Conservative government has pledged a referendum in 2017 on EU membership.
The top personal income tax rate is 50 percent, and the top corporate tax rate has been reduced to 20 percent. Other taxes include a value-added tax and an environment tax. The overall tax burden equals 32.9 percent of total domestic income.
The non-salary cost of employing a worker is moderate, and severance payments are not overly burdensome. The government is ending subsidies to onshore wind farms earlier than originally anticipated.
The overall stability of the financial system has been restored. The banking sector is highly competitive and offers a wide range of financial services”. (HERITAGE)
FRANCE
“François Hollande was elected president in May 2012, and his Socialist Party has majority control of the National Assembly. Hollande’s poor handling of the economy has led to low approval ratings. The conservative UMP (Union for a Popular Movement, now renamed the Republicans) made significant gains in the March 2015 local elections. France was a leading participant in NATO’s March 2011 military engagement in Libya and has sent troops to Mali and the Central African Republic to counter advancing Islamic militants. France began airstrikes against ISIS in spring 2015 and suffered major terrorist attacks in November that killed 130 and injured hundreds more in Paris. The economy is diversified, and economic growth hit a two-year high in May 2015, but unemployment, debt, and government spending also remain high.
The labor market remains stagnant. The labor code’s rigid regulations have hurt competitiveness and increased unemployment. Price controls affect a number of products and services. France is the largest recipient of subsidies under the European Union’s Common Agricultural Policy.
The government invests directly in firms in many sectors throughout the economy. The financial sector remains under relatively strong state influence, with only a small number of foreign banks operating”. (HERITAGE)
SPAIN
“Mariano Rajoy’s conservative Popular Party won the November 2011 election and introduced the largest budget deficit-reduction plan in Spain’s history along with crucial structural and labor reforms. In 2012, the European Union bailed out Spain’s banking sector with a €41 billion loan. However, Rajoy’s government has dismissed recent warnings that more government austerity measures are needed and has demurred at pension reform. The Spanish economy is growing at a steady rate. Spain’s very high unemployment rate has declined only slightly, and youth unemployment hovers at around 55 percent.
Trade agreements are currently being negotiated with countries that include the United States and Japan. Spain generally treats foreign and domestic investors equally under the law, and nearly all sectors are open to foreign investment. With the banking sector under continuing strain, the stability of the financial system remains fragile”. (HERITAGE)
These countries, have different types of political situations, and at the moment each one is overcoming different the economic activities to maintain their sates in the best level of development. Nevertheless, one important thing to consider is that every indirect action that one court takes influences the inversion of its capital in different projects and industries, in that sense the non-necessary elements to been brought to one country can be diminished and replaced with national production in each of this four cases.
BIBLIOGRAPHY
HERITAGE. [Consultado el 21 de agosto de 2016]. Disponible en:http://www.heritage.org/index/country/unitedstates
OBSERVATORY OF ECONOMIC COMPLEXITY. Where does Colombia export Other Processed Fruits and Nuts to? 2014. [Consultado el 21 de agosto de 2016]. Disponible en: http://atlas.media.mit.edu/en/visualize/tree_map/hs92/export/col/show/2008/2014/
