POLITICAL, GOVERNMENTAL AND LEGAL VARIABLES
The political factors affecting business are often given a lot of importance. Several aspects of government policy can affect business. All firms must follow the law. Managers must find how upcoming legislations can affect their activities. The political environment can impact business organizations in many ways. It could add a risk factor and lead to a major loss. You should understand that the political factors have the power to change results. It can also affect government policies at local to federal level. Companies should be ready to deal with the local and international outcomes of politics. Changes in the government policy make up the political factors. The change can be economic, legal or social. It could also be a mix of these factors.
GOVERNMENT REGULATIONS OR DEREGULATIONS
Electronic commerce is emerging as a tool that aims in the long term lead to greater efficiency in business, seeing reflected in improved competitiveness and greater economic and social welfare. Therefore, the need to create an environment made favorable to promote the development of e-commerce as an important factor in economic growth.
With the issuance of Law 527 of 1992 begins to regulate e-commerce, denoting its importance and characteristics: "(...) defines and regulates the access and use of data messages, electronic commerce and digital signatures, and certification bodies are established and other provisions ". In recent years, the Government has developed various policies to encourage e-commerce, such as the National Development Plan 2006-2010 "Community State:
Development for All "which was one of the first attempts by the government to be treated as one of its main points the development of electronic transactions. Later, with the issuance of the National Development Plan 2010-2014, it is intended that the development of electronic commerce protection to the copyright is provided, and in turn greater self-regulation to Internet service providers (National Department Planning, 2009). With the issuance of the document CONPES 3620 (National Planning Department, 2009) initiative became focused on cyber security policy, mainly in the development of policies on data protection and consumer and tried in turn to inform the mipymes the benefits it can bring e-commerce.
This arises from the concern of users about security in transactions in the area of e-commerce, which is mainly defined by two aspects: i) technological and ii) policy and regulatory. First, the technological aspects consist of minimum standards that must be available so that the trust and confidence in online transactions is guaranteed. Secondly and finally, regarding the policy and regulatory aspects, they are the Law 599 of 2000 and Law 1273 of 2009, which regulate the concept of computer crime and the Law 1266 of 2008, which regulates the fundamental right of habeas data "(...) regulates the handling of the information contained in personal databases, particularly the financial, credit, trade, services and from third countries and other provisions".
Internationally, they have carried out several developments in e-commerce, an example of this was the signing of the Doha Ministerial Declaration (2011) of the WTO in which a favorable environment for e-commerce framework was established and turn the non-collection of customs duties on electronic transmissions. Moreover, the United Nations Commission on International Trade Law established some guidelines for the use of electronic communications in international contracts. The Model Law on Electronic Commerce prepared by the United Nations Commission on International Trade Law help all States to strengthen national legislation governing the use of means of communication and storage of digital information. Also, this law emerges as a guide, which provides internationally accepted standards required of all legal framework so that a safer development through electronically generated, becoming an international instrument to remove the need for negotiate different protocols for each country, in each particular case.
This Act was the first law where the main building blocks of the law governing electronic commerce took shape, non-discrimination on the validity of electronic documents, the neutrality of technical means, ie shall adopt provisions whose content is neutral to rapid technological evolution without need to undertake legislative work and functional equivalence, which establishes the criteria that electronic communications must meet to match the communications made on paper.
Therefore, this law has the objective to facilitate the use of electronic commerce and equal treatment to users who use physical documents and those documents by using web, thus promoting the economy and efficiency of electronic commerce. (Super Intendencia de Industria y Comercio, 2013)
TAKEN FROM
Super Intendencia de Industria y Comercio. (2013). Comercio Electrónico en Colombia.
CHANGES IN TAX LAWS
With the aim of achieving balanced public finances in the short and medium term, for the past 24 years Colombia has had 13 interventions in the tax system through reforms presented to the Congress of the Republic. Decisions in due course have taken the finance ministers on duty since 1990 Rudolf Holmes who held the post in the government of Cesar Gaviria, to the most recent statement made by the government of President Juan Manuel Santos, under the tutelage of Minister Mauricio Cardenas, have had effects like everything in life generates about peace and inconvenience to others. This was the last reform in 2014
1607 Tax Reform Act of 2014
VAT kept lien on Financial Transactions (GMF) at a rate of 4X1.000 until 2018 to begin their gradual elimination from 2019.
Objective: collection of $ 53 billion
Creation of wealth tax: will be in charge of legal, natural and corporate taxpayers made tax income and other persons
Creating the surcharge CREE: This tax will apply from 2015 to 2018.
Importantly, currently a group of economic experts were recently appointed by the national government to structure what would be a new reform to be presented presumably in 2015 that would seek to increase the tax base again and extend the life of other taxes to continue reducing gaps of every character in Colombia. (DINERO, 2015)
National taxes are those whose regulation and implementation is common to all the national territory and administered by the DIAN. They are classified into internal, external and other taxes. The first category includes income taxes, value added, timbre, property and tax on financial transactions (GMF). According to the figures reported in 2004, this tax group generates about 80% of national tax revenue, a share that has remained virtually constant over the past five years. Meanwhile, external taxes, consisting of duties and VAT on exports, contribute 20%. As we can see in figure 1.3, said composition has not made major alterations. Income tax and VAT are doing the greatest contribution to the total collection. In 2004, income tax and supplementary contributed 42% of total collection, VAT 29%, 20% external activity, GMF 6% and 1.5% stamp. A much smaller portion consists of collections in other taxes and the estate tax. In recent years there have been significant increases in revenues, which rose from 11.03% in 2000 to 14.79% in 2004. Table 1.3 contains the collection on behalf of each of the taxes (as a proportion of GDP).
The most outstanding feature in the recent period has been the constant change in tax rates. The top rate of income tax increased from 30% in 1999 to 38.5% (taking into account the 10% Surcharge). The same has happened with the tax on financial transactions, which was introduced on a temporary basis at a rate of 2 per thousand, subsequently raised to 3 per thousand in 2000 (Act 633 of 2000) and to 4 per thousand (Act 863 of 2003), in force until 2007. Then we will make a description of the collection, the base and the current rates for each tax. (DIAN, 2014)
TAKEN FROM
DIAN. (2014). DIAN. Recuperado el 12 de Febrero de 2016, de DIAN: http://www.dian.gov.co/descargas/servicios/OEE-Documentos/Estudios/Tributacionycompetitividad.pdf
DINERO. (27 de FEBRERO de 2015). DINERO. Recuperado el 12 de Febrero de 2016, de DINERO: http://www.dinero.com/economia/articulo/cuantas-reformas-tributarias-ha-tenido-colombia/206248
UPDATE
Small and medium enterprises are recognized as generators of employment in the economy.
To this extent, the existence of additional wages, high labor costs for these companies is a condition that contributes to informality, as an employer for the existence of these additional costs represent a heavy burden when hiring workers.
This has a negative effect on the economy because it encourages workers to seek informal jobs to the lack of a formal job offer.
LESS PARAFISCAL
Faced with this situation, the tax reform eliminated para-fiscal charges for the Seine, the Colombian Family Welfare Institute (ICBF) and health. Instead the income tax for equity (CREE), which began to be applied from the first of January 2013 was created.
Through this the resources to replace those who came from the parafiscal contribution, except those for the family compensation funds, which will be maintained (see Article 24, Law 1607 of 2012) will be generated.
CREE applied on 9 percent of corporate profits between 2013 and 2015, while for the subsequent years its rate down to 8 percent (see Article 23 of Law 1607 of 2012).
The collection of this tax exempt entities are non-profit, as companies declared free zones, which remain bound to make the levies and other contributions provided by law contributions.
The above situation shows that resources for the Seine, ICBF and health were transferred from the part of labor contracts, to be charged as a percentage of the profits of the companies. That is, although as no such filed a waiver or discontinuance of this collection but a font substitution, yes he prevented its realization was made on the payment made to employees, which generated an incentive to informality, because these charges generated a very high weight on the conformation of payroll companies.
And a transfer is generated at the source of these charges (with the creation of CREE), producing a shift of the tax burden especially harmed those intensive companies hiring / use of labor, to a variable covering performance general companies, as in the case of profits and sustainability.
In other words, he sought to create a tax relief for this type of business, in order to reduce labor cost overruns that they have been receiving Colombian organizations in recent years and balance the price ratio capital / labor. This benefits companies intensive labor, where small and medium majority. (Finanzas, 2014)
EFFECTIVE TAX RATE / EFFECTIVE TAX RATE EXCLUDING SOCIAL SECURITY AND PARAFISCAL
Mining: 72.3% / 71.7%
Industry: 77.2% / 72.4%
Electricity: 42.9% / 42.0%
Transport: 68.2% / 64.4%
Business services: 70.1% / 48.4%
Other services: 51.1% / 33.4%
Other sectors: 76.5% / 72.7%
Finanzas. (2014). ¿Caunto pagan las empresas colombianas en impuestos? Portafolio.
SPECIAL TARIFFS
In Colombia, the general VAT rate is 16%. There are several differentials, lower and higher than the 16% rate. The general rate of 16% applies to both goods and services. The goods or services with special rates or differential must be expressly stated by the standard, as well as exempt and excluded. This means that if a good or service is not covered by the standard as excluded, exempted or special or differential rate, as it will be taxed at the general rate. In the sales tax is assumed that all goods and services are taxed at the general rate unless a rule exhaustively says otherwise. (Gerencie, 2010)
With the enactment of Law 1607 of 2012, a new twist was in many respects the national tax world, gave a comprehensive reform in this area, within which the VAT was changed in many points. Quarterly and annual statements are added to the existing bimonthly when comply with tax reporting requirements. Which of the deadlines I welcome me? To determine this, you need to review your income to December 31, 2012 and classify them into one of three groups established by Decree 0187 of 2013; equal to or exceeding 92,000 UVT will bimonthly, greater than 15,000 but less than 92,000 UVT be quarterly, or should have lower revenues in the year 2012 at 15,000 UVT, your return will be annual.
So they go together new dates for filing and payment of tax returns, important to avoid future problems with tax administration (DIAN) data. Taxpayers required to file annual return, to keep in mind, the aforementioned decree establishes dates for quarterly payments to be made in advance mode.
Another key point in this tax rollover is the establishment of just three rates for VAT; rates of 0% for products in the basket and 5% for including certain products and services in the agricultural sector, such as preferred rates, and the general rate of 16% for products and services not classified within the aforementioned.
For services such as mobile telephony, restaurants and vehicles, boats and air aircraft; the outlook also took another tone; the first is a decrease in the rate from 20% to 16%; in the second case, only those who will continue to operate under franchise taxed at 16% VAT; and the third group, the rate also decreases to 16%. At this point you should consider the creation of a tax on consumption, because although the VAT tax burden is reduced, the consumption tax comes into play important part, for example in the mobile phone service at a rate of 4%. Withholding tax was also amended by the tax reform, since the rate to 15% of the value of the tax is decreased, except for the taxable services provided by foreigners without residence or domicile in Colombia and for the sale of scrap and sale of snuff, with certain exceptions, which will be left with 100% tariff. Regarding the consumption tax regulation that is to give in the case of goods that were being taxed at rates of 25, 30 and 35% is pending. (Comunidad Contable, 2013)
TAKEN FROM
Comunidad Contable. (23 de Abril de 2013). Comunidad Contable. Recuperado el 12 de Febrero de 2016, de Comunidad Contable: http://www.comunidadcontable.com/BancoConocimiento/N/noti-2204201302_%28la_nueva_cara_del_iva%29/noti-2204201302_%28la_nueva_cara_del_iva%29.asp
Gerencie. (20 de Diciembre de 2010). Gerencie. Recuperado el 12 de Febrero de 2016, de Gerencie: http://www.gerencie.com/tarifa-general-en-el-impuesto-a-las-ventas.html
VOTER PARTICIPATION RATES
In the last 52 years, in which there have been 14 presidential elections, three of them with second round, the percentage of voter turnout has only reached 46.5%, ie, more than half of citizens eligible voters refrained from attending the polls, no matter what have been the candidates or the conditions under which the elections took place.
Only four times, 1958, 1970, 1974 and 1998 (first round) more than 50% percentage is encouraged to do their democratic duty and flocked to the polling stations.
It is noteworthy that the two times when most Colombians took to the polls to elect their new president, coincidentally, were the beginning and end of the National Front.
In 1958, for example, when the country was able to restore its democracy after eight years without presidential elections and five under a military regime headed by General Gustavo Rojas Pinilla (1953-1957) and a military junta (1957-1958) the participation rate reached 57.71% (3'108.567 of 5'365.191 eligible to vote), most of which was decided by a liberal government, led by Alberto Lleras Camargo.
Four years later, on Sunday April 21, 1974, and with the participation of new parties such as the National Popular Alliance (ANAP) who joined the traditional liberal and conservative a 58.47% of Colombians eligible to vote in the time (5'218.855 of 8'925.330 enabled) attended the democratic appointment. The winner then was too liberal Alfonso Lopez Michelsen.
Since then, only until 1998 in the first round disputed by the candidate Andrés Pastrana (conservative), Horacio Serpa (Liberal), Noemi Sanin (Yes, Colombia), Harold Bedoya (Force Colombia), among others, the number of voters turned to exceed 50% of the total registered.
Thus, the 20'857.801 was able to meet and exercise their right as a citizen, 10'753.465 presented to the polls, ie a 51.56%. In the second round of the same race, the percentage of participants was reduced to 40.99% and from there the trend has been similar. 1994, the year of the absent But since 1974 the specter of abstention in presidential been made theirs poll after poll, the real electoral debacle took place in 1994. Although for the time the census of voters had already risen to 17'146.597, the 1991 Constitution overlaid with new tools to democracy and were launching the first electoral reforms, the results at the polls were the worst in the last 52 years. Of all citizens eligible to vote, as only 33.95% (5'821.331) participated in the democratic journey in which the liberal Ernesto Samper Pizano won victory. That is, the abstention rate reached 66.05%.Altho ugh it was in this year when the country opened the presidential runoff, given the narrow margin by which he won Pizano, in this new day turnout it was also low, 43.32%. And while attendance rose nine points, abstention was ranked as one of the highest in the last 14 presidential elections, with 56.68%. Although since that time has not been repeated a similar phenomenon, line share has always remained low with percentages ranging between 40 and 49%. In fact it was in the first round of 2010, where Colombia again be close to having more than half of Colombians enriching the democratic journey.
Guarantees and benefits do not attract voters. Given the high number of absent electoral potential of the polls, the National Registry has been designing all kinds of strategies to encourage participation, but still these have been unsuccessful, against the citizen apathy. Also, with the latest political reforms the registration period was extended to bonds and the process is moved to the closest residences of voters in order to allow more citizens to exercise their right places. (El Universal, 2014)
Campaigns dela U Party, the Democratic Centre, the Conservative Party and the Liberal Party, celebrated the results when the four big winners in congressional elections. But again he abstention ranked first as the press time more than 52% of Colombians decided not to go to the polls.
In Colombia the electoral potential, ie, people eligible to vote, reaching 32.8 million. A recently they attended the polls more than 14.3 million people taking into account the number of votes in the Senate. This constitutes another defeat for democracy, because, as we see, more than half of the population does not exercise its right.
But as if this was not in itself a grim picture, it is worth reflecting on the spoiled ballots and unmarked. In Senate 1,485,000 were canceled and more than 842,000 votes were recorded unmarked. Figures that any party would have. For example, Radical Change, which won nine seats and is the fifth vote in the Senate, did not reach one million votes. (Semana, 2014)
TAKEN FROM
El Universal. (5 de Mayo de 2014). Colombia, un país abstencionista. El Universal.
Semana. (2014). Abstencionismo, otra vez protagonista. Semana.
NUMBER, SEVERITY AND LOCATION OF GOVERNMENT PROTESTS
Representatives from trade and social sectors flocked on the streets of Armenia, Barranquilla, Bogota, Cali, and Cartagena, among other cities, teleSUR listed. The protesters aired out their grievances against the government's economic plans, such as tax increases that critics say will have a huge impact on the poor, and an increase in the minimum wage that fails to match the inflation. Around 500 people demonstrated in Bogota's Plaza Bolivar, where they demanded a 12 percent increase in the minimum wage instead of the 7 percent declared in the decree, the news outlet added. They are also against a new tax on bank transactions and the increase in value added tax, or VAT, which will climb from 16 percent to 19 percent. People also protested on the streets of Medellin, Colombia's second largest city. Demonstrators objected corruption and the high cost of living, with lead organizer Maria Victoria Garcia telling teleSUR that Colombians "are tired of (President Juan Manuel) Santos doing what he wants." A spokesperson for the Citizens Movement, Andrea Liliana Bermudez, said that the protests aimed to emphasize "the injustices being committed in this country against ordinary citizens," teleSUR noted. The General Confederation of Labor, or CGT, has also announced a general national strike to be held in March. Aside from these, demonstrators opposed the sale of the Colombian government's controlling stake in power generator Isagen to a Canadian investment fund, teleSUR further reported. A group led by Toronto-based Brookfield Asset Management is paying $2.2 billion for 57 percent of Isagen, which operates Colombia's largest dam, the Associated Press reported (via Yahoo! News). Employees of Isagen staged protests against the privatization of the strategic and profit-generating firm. A number of Santos' allies also questioned the sale's insight "after the only other potential bidder pulled out, all but guaranteeing the winning offer wouldn't exceed the government-set minimum," the AP added. The Colombian president, however, pushed through with the sale to improve the country's fiscal accounts as a collapse in oil prices threaten the economy, the news outlet noted. Oil makes up more than half of the nation's exports. The government plans to use the proceeds of Brookfield's investments for funding highways, bridges, and tunnels across the country, also called as its 4G infrastructure projects, Reuters reported. A finance ministry official said that Brookfield has until Jan. 27 to pay for the firm and acquire possession of the shares. (Latin One, 2016)
TAKEN FROM
Latin One. (16 de Enero de 2016). Latin One. Recuperado el 12 de Febrero de 2016, de Latin One: http://www.latinone.com/articles/31397/20160126/thousands-protest-against-colombian-government-s-proposed-economic-plans.htm
NUMBER OF PATENTS
It may be the growth rate of the economy, increased flows of foreign capital, the arrival of new international competitors, signing multiple free trade agreements. One or all of them, the fact is that in recent years Colombia has experienced an increase in the number of applications to register both patents (or inventions associated with industrial designs, among others) and logos (the properties of a product as a brand advertising slogan, etc.).
According to figures from the Superintendence of Industry and Commerce (SIC), the entity responsible for advancing these procedures, patent applications increased from 1,800 in 2009 to 2,300 in 2012, representing an increase of 28%; the same behavior occurred in the Brand Features applications, as 22,000 applications received in 2009, last year recorded 31,000 (grew at a figure close to 41%). "The idea is that those numbers continue to grow. We, in the state, are touring the country for that purpose. We have a mobile SIC program in which we go to the cities, we report the benefits of intellectual property to date, the rights involved, state mechanisms to ensure compliance, etc. Additionally, anyone can file a patent or trademark through virtual mechanisms on our website, "said Superintendent Pablo Felipe Robledo. But it is not a concentrated performance in recent years. World Bank statistics show that the country went to register 126 patents in 2008 to 183 in 2011, with a similar pattern in the number of applications processed by way of distinctive signs: it went from 23,464 to 29,084 in the four years; however, the numbers are still very small compared to the 415,829 patents handled by the Chinese authorities or 306,049 trademark applications processed by the Americans.
We must also clarify that all requests are not presented only by Colombians. "Globalization of the economy leads to our registration system is also used by foreigners think someday bring their business to Colombia. Is a process that has become attractive to investors under the umbrella of the FTA, "said Robledo.
This trend reflects the fact that, with the signing of trade agreements, the country was forced to strengthen protection of intellectual property. In addition to the cases being conducted by the Attorney General's Office or the judiciary, the SIC a year ago, after being depository of the right to act as judge in these cases, is investigating various cases of trademark infringement. At present, for this behavior, it opened four investigations. "Response times for the registration of trademarks have been declining. The current average processing is at 5.6 months, well above the target we set out to achieve by 2014. Our industrial property system works with the same speed of the best systems in the world, "summed Robledo, adding that the governing body has the capacity to complete the appeals process at a time of no more than seven months. (David Mayorga, 2013)
(Superintendencia de Industria y Comercio, 2015)
TAKEN FROM
David Mayorga. (26 de Abril de 2013). Colombia, el país de las patentes. El Espectador.
Environmental protection laws
Colombia has a very strong environmental legislation but few companies know and fully comply, so the Decree 1299 of 2008 which regulates the eighth article of Law 1124 of 2007, sets out the obligation of each organization to develop its activity producer in the country, through the implementation and respect for environmental standards. Law arises: "All companies should have a level environmental department of environmental management within their organization to ensure compliance with environmental regulations of the Republic," according to the above implementing an Environmental Management Department is required by medium and large enterprises, an industrial CIIU, their economic operation is regulated and standardized internationally, so they are forced to take this department, "the important thing is that all businesses regardless of size meet with environmental standard, with the laws, decrees and resolutions that have to do with monitoring and environmental impact they may have 'said Hildegard Heins Manager Equilibrium Consulting Group. 486 The judgment of the Constitutional Court of July 22, 2009, excludes micro and small businesses to comply with this rule, since the implementation of this environmental standard requires a financial investment that threatens its viability and profitability.
http://caracol.com.co/radio/2010/09/29/ecologia/1285759620_364757.html
Level of defense expenditures
Data on military spending SIPRI are derived from the NATO definition, which includes all current and capital relating to military expenses, including the forces of peacekeeping; defense ministries and other government agencies engaged in defense projects; paramilitary forces, it is considering that are trained and equipped for military operations; and activities in the military area. These expenses include the military and civilian personnel, including retirement pensions of military personnel and social services for staff, operation and maintenance, purchasing, research and military development and military aid (in the military expenditures of the donor country). It excludes civil defense and the running costs of previous military activities, such as veterans' benefits, demobilization, conversion and destruction of weapons. However, this definition can not be applied to all countries, since that would require much more detailed information than is available in military budgets and off-budget military spending outside. (For example, military budgets might include or civil defense, reserves and auxiliary forces, police and paramilitary forces, dual-purpose forces such as military police and civil, military grants in kind, pensions for military personnel and social security contributions paid by one part of government to another.)
http://datos.bancomundial.org/indicador/MS.MIL.XPND.GD.ZSn
Legislation on equal employment
Law # 1496- 29 / DEC / 2011
' Which ensures equal pay and labor remuneration between women and men, mechanisms are established to eradicate all forms of discrimination and other provisions' In all the articles of this law we can find you work in terms of equal male and female workers, direct discrimination in labor remuneration of gender, race or sex, among others.
http://wsp.presidencia.gov.co/Normativa/Leyes/Documents/ley149629122011.pdf
Level of government subsidies
The family subsidy is a social benefit payable in cash, kind and services to workers in middle and lower income in proportion to the number of dependents and its main objective is to relieve the financial burden representing family support as a basic unit of society. Child benefit is not wages or factor is computed as of the same in any case. In-kind subsidy is recognized in food, clothing, scholarships, textbooks, drugs and other fruits or different genres of money determined by the regulations of the law. Subsidy services is offered through programs that develop family compensation funds such as education, training, libraries, recreation, tourism, housing, credit, elderly and disabled. For these services the family compensation funds set differential rates according to the wages of workers affiliated.
http://www.ssf.gov.co/wps/portal/ES/El-Subsidio-Familiar/subsidio-afiliado/tipos-subsidio
In Colombia the majority of subsidies are provided to the 'family housing subsidy', which is a state contribution in cash or in kind given by one-time home to the beneficiary, which is not restored and is a complement to facilitate the acquisition new housing, on-site construction or improvement of housing. Exceptionally, it allows families of vulnerable populations such as displaced persons, victims of terrorist acts and affected by disaster or public emergency, implement this subsidy for the purchase of used housing, also for households displaced and victims of attacks lease terrorist mode is included.
http://www.minvivienda.gov.co/viceministerios/viceministerio-de-vivienda/subsidio-de-vivienda
Antitrust legislation
'Antimonopoly Act would change the economic model of the country'
That article seeks to intervene the market of mobile communications in the country by creating ceilings of 30 percent participation of businesses that means that no company could have a number of clients that exceed such percentage of total mobile users Colombia. However, prior to the postponement vote, senators briefly expressed their positions against the bill, showing a clear division on site.
http://www.portafolio.co/economia/proyecto-ley-antimonopolio-colombia
In order to "protect consumers" in the late nineteenth and early twentieth century, the US enacted antitrust laws and sectoral regulation. These laws are intended to promote fair competition and limit the stocks of companies with market power. To ensure fair competition, the federal government passed the following laws:
-Sherman Antitrust (1890)
-Clayton Antitrust (1914)
-The Federal Trade Commission (1914)
https://watchinginternationaleconomy.wordpress.com/2009/04/23/antimonopolio-y-regulacion/
Colombo-American relationships
Relations between the United States and Colombia have evolved mutual cordiality during the nineteenth and early twentieth centuries to a recent partnership that links governments of both nations around several key issues, including the fight against Communism is included, the war on drugs, and especially since 911, the threat of terrorism. During the mid-twentieth century, various US administrations have been involved in the internal affairs of Colombia through the design and implementation of policies related to these matters. Some critics of US policy toward Colombia, such as law professor John Barry, consider the influence of the United States has catalyzed internal conflicts and substantially expanded the scope and nature of human rights abuses In Colombia. Those who support these policies, as the Under Secretary of State Marc Grossman, believe that the United States has promoted respect for human rights and the rule of law in Colombia, as well as the fight against drugs and terrorism from by 2012 the United States declared that the country with the best relationships have is Colombia.
http://www.mincit.gov.co/publicaciones.php?id=637
Colombo-Russian relationships
The history of Russian-Colombian ties is not written yet. And that will be writing will have to move in two parallel, complementary areas, but relatively independent of each other: official relations on the one hand and on the other, all kinds of human contacts: cultural, scientific, spiritual, personal, etc. At present Russia and Colombia have similar or overlapping positions on the main issues of international politics. In particular, the two nations seen as the main goal we must fight humanity in the coming decades the creation of a multipolar and balanced world where there is no room for arrogance of money or power and where they carry out a redistribution of wealth for the benefit of a sustainable development of all nations, especially the poorest. Russia and Colombia agree with the vast majority of the world's countries in their desire not to allow the militarization of outer space and ensure that the most advanced technologies for exploration and conquest of space to be used only for peaceful purposes.
http://colombia.mid.ru/es/kolumbia
Import- Export regulations
In Colombia imports and exports are regulated by the DIAN; The Tax and Customs under the Ministry of Finance entity, was established as a Special Administrative Unit by Decree 2117 of 1992, when the 1 June 1993 the Department of National Revenue (DIN) merged with National Customs Directorate (DAN). DIAN is organized as a Special Administrative Unit of the National Order of highly technical and specialized nature, with legal, administrative and budgetary autonomy and its own assets, attached to the Ministry of Finance and Public Credit.
http://www.dian.gov.co/DIAN/12SobreD.nsf/pages/Laentidad?OpenDocument
Number of patents
Colombia does not take off in patents.
In the country they have 200 times less than in the US patent, culture of record is missing. Colombia is far behind in the international arena in terms of patents is concerned: this year have been filed with the Superintendent of Industry and Commerce (SIC) 1,244 applications, of which have been granted 572. Every year occur around 2,000 patent applications in the country, and only one in 10 is a national. Of the total of this year, 1,110 are foreigners and only 134 national, and granted, 515 are foreigners and 57 Colombians. Luis Antonio Silva, head of the Patent Pool SIC, despite attempts by the Superintendence for making the process easier to protect new inventions in the country lack of raw log culture and ignorance of the system by nationals.
http://www.eltiempo.com/economia/sectores/patentes-de-invencion-en-colombia/14462107
Environmental protection laws
Colombia has a very strong environmental legislation but few companies know and fully comply, so the Decree 1299 of 2008 which regulates the eighth article of Law 1124 of 2007, sets out the obligation of each organization to develop its activity producer in the country, through the implementation and respect for environmental standards. Law arises: "All companies should have a level environmental department of environmental management within their organization to ensure compliance with environmental regulations of the Republic," according to the above implementing an Environmental Management Department is required by medium and large enterprises, an industrial CIIU, their economic operation is regulated and standardized internationally, so they are forced to take this department, "the important thing is that all businesses regardless of size meet with environmental standard, with the laws, decrees and resolutions that have to do with monitoring and environmental impact they may have 'said Hildegard Heins Manager Equilibrium Consulting Group. 486 The judgment of the Constitutional Court of July 22, 2009, excludes micro and small businesses to comply with this rule, since the implementation of this environmental standard requires a financial investment that threatens its viability and profitability.
http://caracol.com.co/radio/2010/09/29/ecologia/1285759620_364757.html
Level of defense expenditures
Data on military spending SIPRI are derived from the NATO definition, which includes all current and capital relating to military expenses, including the forces of peacekeeping; defense ministries and other government agencies engaged in defense projects; paramilitary forces, it is considering that are trained and equipped for military operations; and activities in the military area. These expenses include the military and civilian personnel, including retirement pensions of military personnel and social services for staff, operation and maintenance, purchasing, research and military development and military aid (in the military expenditures of the donor country). It excludes civil defense and the running costs of previous military activities, such as veterans' benefits, demobilization, conversion and destruction of weapons. However, this definition can not be applied to all countries, since that would require much more detailed information than is available in military budgets and off-budget military spending outside. (For example, military budgets might include or civil defense, reserves and auxiliary forces, police and paramilitary forces, dual-purpose forces such as military police and civil, military grants in kind, pensions for military personnel and social security contributions paid by one part of government to another.)
Percentage of GDP used in defense:
http://datos.bancomundial.org/indicador/MS.MIL.XPND.GD.ZSn
Legislation on equal employment
Law # 1496- 29 / DEC / 2011
' Which ensures equal pay and labor remuneration between women and men, mechanisms are established to eradicate all forms of discrimination and other provisions' In all the articles of this law we can find you work in terms of equal male and female workers, direct discrimination in labor remuneration of gender, race or sex, among others.
http://wsp.presidencia.gov.co/Normativa/Leyes/Documents/ley149629122011.pdf
Level of government subsidies
The family subsidy is a social benefit payable in cash, kind and services to workers in middle and lower income in proportion to the number of dependents and its main objective is to relieve the financial burden representing family support as a basic unit of society. Child benefit is not wages or factor is computed as of the same in any case. In-kind subsidy is recognized in food, clothing, scholarships, textbooks, drugs and other fruits or different genres of money determined by the regulations of the law. Subsidy services is offered through programs that develop family compensation funds such as education, training, libraries, recreation, tourism, housing, credit, elderly and disabled. For these services the family compensation funds set differential rates according to the wages of workers affiliated.
http://www.ssf.gov.co/wps/portal/ES/El-Subsidio-Familiar/subsidio-afiliado/tipos-subsidio
In Colombia the majority of subsidies are provided to the 'family housing subsidy', which is a state contribution in cash or in kind given by one-time home to the beneficiary, which is not restored and is a complement to facilitate the acquisition new housing, on-site construction or improvement of housing. Exceptionally, it allows families of vulnerable populations such as displaced persons, victims of terrorist acts and affected by disaster or public emergency, implement this subsidy for the purchase of used housing, also for households displaced and victims of attacks lease terrorist mode is included.
http://www.minvivienda.gov.co/viceministerios/viceministerio-de-vivienda/subsidio-de-vivienda
Antitrust legislation
'Antimonopoly Act would change the economic model of the country'
That article seeks to intervene the market of mobile communications in the country by creating ceilings of 30 percent participation of businesses that means that no company could have a number of clients that exceed such percentage of total mobile users Colombia. However, prior to the postponement vote, senators briefly expressed their positions against the bill, showing a clear division on site.
http://www.portafolio.co/economia/proyecto-ley-antimonopolio-colombia
In order to "protect consumers" in the late nineteenth and early twentieth century, the US enacted antitrust laws and sectoral regulation. These laws are intended to promote fair competition and limit the stocks of companies with market power. To ensure fair competition, the federal government passed the following laws:
-Sherman Antitrust (1890)
-Clayton Antitrust (1914)
-The Federal Trade Commission (1914)
https://watchinginternationaleconomy.wordpress.com/2009/04/23/antimonopolio-y-regulacion/
Colombo-American relationships
Relations between the United States and Colombia have evolved mutual cordiality during the nineteenth and early twentieth centuries to a recent partnership that links governments of both nations around several key issues, including the fight against Communism is included, the war on drugs, and especially since 911, the threat of terrorism. During the mid-twentieth century, various US administrations have been involved in the internal affairs of Colombia through the design and implementation of policies related to these matters. Some critics of US policy toward Colombia, such as law professor John Barry, consider the influence of the United States has catalyzed internal conflicts and substantially expanded the scope and nature of human rights abuses In Colombia. Those who support these policies, as the Under Secretary of State Marc Grossman, believe that the United States has promoted respect for human rights and the rule of law in Colombia, as well as the fight against drugs and terrorism from by 2012 the United States declared that the country with the best relationships have is Colombia.
http://www.mincit.gov.co/publicaciones.php?id=637
Colombo-Russian relationships
The history of Russian-Colombian ties is not written yet. And that will be writing will have to move in two parallel, complementary areas, but relatively independent of each other: official relations on the one hand and on the other, all kinds of human contacts: cultural, scientific, spiritual, personal, etc. At present Russia and Colombia have similar or overlapping positions on the main issues of international politics. In particular, the two nations seen as the main goal we must fight humanity in the coming decades the creation of a multipolar and balanced world where there is no room for arrogance of money or power and where they carry out a redistribution of wealth for the benefit of a sustainable development of all nations, especially the poorest. Russia and Colombia agree with the vast majority of the world's countries in their desire not to allow the militarization of outer space and ensure that the most advanced technologies for exploration and conquest of space to be used only for peaceful purposes.
http://colombia.mid.ru/es/kolumbia
The Russian export consolidated article is mineral fertilizers. Russia ranks second in providing this type of production to Colombia, covering 13-15% of import. Colombia has become the third largest supplier of flowers Russia and covers more than 10% of demand. Since 2006 Russia has become the second largest buyer of roses, chrysanthemums and orchids Colombian world. Colombia is also one of the largest suppliers of bananas and coffee in Russia. The Russian Federation is one of the five largest buyers of Colombian coffee soluble. The country is included in the Russian general system of preferences, which establishes a 25% reduction of customs duties in the introduction of numerous products. This system will continue for the next seven years Russia's accession to the WTO in August 2012.La economic cooperation between Russia and Colombia has been gradually emerging from the margins of the simple exchange of products. The Russian energy sector companies participated in carrying out a contract for exploitation and technical service of the Urra-1 hydroelectric power station.
African-Colombian relationships
Merchandise exports in 2012 from Colombia to Africa are quantified in $ 494.7 million while imports totaled $ 149.1 million. As for the trade balance with Africa it is positive with $ 345.6 million surplus. Its main customers are South Africa and Togo, while its main African suppliers are South Africa and Morocco.
http://www.africainfomarket.org/estadisticas/item/16011-relaciones-comerciales-colombia-africa
In 2013, exports of goods from Colombia to Africa reached $ 183 million while imports recorded $ 164 million. The trade balance with Africa is positive $ 18 million. Its main customers are South Africa and Ivory Coast, while its main African suppliers are Morocco and South Africa. The main exports are sugar, molasses and honey and imported from the African continent are fertilizers.
http://www.africainfomarket.org/estadisticas/item/16925-relaciones-comerciales-colombia-africa-16925
Import- Export regulations
In Colombia imports and exports are regulated by the DIAN; The Tax and Customs under the Ministry of Finance entity, was established as a Special Administrative Unit by Decree 2117 of 1992, when the 1 June 1993 the Department of National Revenue (DIN) merged with National Customs Directorate (DAN). DIAN is organized as a Special Administrative Unit of the National Order of highly technical and specialized nature, with legal, administrative and budgetary autonomy and its own assets, attached to the Ministry of Finance and Public Credit.
http://www.dian.gov.co/DIAN/12SobreD.nsf/pages/Laentidad?OpenDocument
Government fiscal and monetary policy changes
Monetary policy in Colombia is governed by an inflation targeting, which aims to maintain a low and stable rate of inflation, and achieve output growth in line with the potential capacity of the economy. This means that the objectives of monetary policy combine the goal of price stability with maximum sustainable growth in output and employment. While inflation targets are credible, these objectives are compatible. Thus, monetary policy fulfills the mandate of the Constitution and contributes to improving the welfare of the population.
The structural deficit recorded in 2014 was 2.4% of GDP. By 2015 the government estimated that the fiscal gap that opened the fall of oil was $ 9 billion, of which half the assumed and non-structural (That, financed with more debt), and the other half were assigned to structural deficit projected for this year. So, the structural deficit for 2015 resulted from 2.3% of GDP. Uncertainties began 2016 onwards. Because among other things, remember, lower revenues by falling oil prices were reflected in the tax returns of 2015 that in turn determine the revenues in 2016 and beyond. Such a serious organization like Fedesarrollo considers that despite the tax reform of 2014, no less incremental revenues will be needed to a point of GDP ($ 8 billion per year) from 2016, so that the country's fiscal accounts.
http://www.larepublica.co/%C2%BFpara-donde-va-la-pol%C3%ADtica-fiscal-en-2015_213756
Political conditions in foreign countries
Venezuela
In the last decade, through 2014, Venezuela was favored with historically high oil prices, which allowed expanding government spending on ambitious programs. The government created various public enterprises and nationalized a number of private enterprises in sectors such as oil, metals and mining, cement, banking and telecommunications. Major social programs called Misiones in order to provide basic services and transfers of resources to traditionally excluded sectors were implemented. Economic growth and redistribution of resources helped significantly reduce poverty 50% in 1998 to around 30% in 2013, according to official figures. Similarly, inequality declined, reflected in a fall in the Gini index of 0.49 in 1998 to 0.40 in 2012, among the lowest in the region.
http://www.bancomundial.org/es/country/venezuela/overview
Peru
In the last decade, Peru stands out as one of the fastest growing economies in Latin America and the Caribbean. Between 2005 and 2014, the average growth rate of GDP was 6.1% in an environment of low inflation (2.9% on average). A favorable external environment, prudent macroeconomic policies and structural reforms in various areas are combined to result in this scenario of high growth and low inflation.
http://datos.bancomundial.org/pais/peru
Brazil experienced a decade of economic and social progress from 2003-2013 in which over 26 million people were lifted out of poverty and inequality was reduced significantly (the Gini Coefficient has fallen 6% in 2013 to 0.54).The income of the bottom 40% of the population grew on average 6.1% (in real terms) between 2002 and 2012, compared to an 3.5% growth in income of the total population. However the reduction in poverty and inequality shows signs of stagnating since 2013.
http://www.worldbank.org/en/country/brazil/overview
Size of government budgets
http://www.minhacienda.gov.co/HomeMinhacienda/presupuestogeneraldelanacion/ProyectoPGN/2016
Political analysis
Our company is involved with education and tourism so the variables that affect us more directly in the political aspect are:
-Changes in tax laws: These changes affect us because depending on the imposition of tax on tourism or education, customers can search for other destinations in other platforms where they can access the service for a better price.
- Special tariffs: This variable may tend to benefit our company and affect anyway governments can apply special rates for foreign students, such as grants or scholarships in some cases.
-Level of government subsidies: The level of subsidies is really important, because the more subsidies to study both in Colombia and in Brazil and other Latin American countries foreign students from Europe or the United States, etc seek forms of subsidy for education, rent, or transportation
- Colombia-America relationships: This relationship is really important since many American students are seeking to come to Colombia to study for some time, that’s why the high importance is the relationship between these countries this solid, so there will be a greater flow of customers.
-European- Colombia relationships: This relationship is really important since many European students are seeking to come to Colombia to study for some time, that’s why the high importance of this relationship between that continent and Colombia to be solid, so there will be a greater flow of customers.
- Location and severity of terrorist activities: This is a special case for Colombia and Venezuela, although long ago has not happened any terrorist attack, there are still groups operating outside the law, so it is vital to know where these groups move because for days past, people from other countries think Colombia or Venezuela are very dangerous, foreign students will not want to study in towns or cities where are these groups.
