Doing Business With A Company In Colombia: The Benefits And Challenges
Colombia experienced high investment levels between 2002 and 2007 thanks to its promarket policies. Unfortunately, this came to an abrupt end when the global financial crisis hit bringing on negative growth rates due to the sudden decrease of Colombian exports. In this article, you will discover the benefits and challenges of doing business with a company in Colombia.
Colombia is situated in Latin America sharing borders with Ecuador, Panama, Brazil, Venezuela and Peru. Its population is 45 million people and its official currency is the Colombian Peso. Spanish is spoken although the business community.
Its main exports are petroleum, coffee, coal, nickel, emeralds, apparel, bananas and cut flowers. Its main imports are industrial equipment, transportation equipment, consumer goods, chemicals, paper products, fuels and electricity. Its most important export partners are the United States, Venezuela and Ecuador.
What you can do to start your research is getting in touch with embassies and consulates to get as much information as possible. Online directories can also be helpful but they sometimes have outdated information which could make it harder to contact a company in Colombia. Newer B2B marketplaces with an emphasis on doing business in Latin America can be a good option. When doing business online, purchase credit reports to get financial and legal history of a potential business partner to decrease risks.
With the economic crisis, Colombia has learned the hard way that depending on countries such as the United and Venezuela only for economic growth can have devastating effects. It is currently encouraging its exporters to diversify its trading partners in order to mitigate risks.
As you can see, doing business with a company in Colombia has its challenges and benefits. It will require some time to penetrate the market but will be well worth it. Always try to protect yourself against any financial risk by thoroughly researching about your potential business partner.
Ariel Dess specializes in assisting companies successfully import and export with Latin America. To access to his valuable resources, tips and links, click here leads online
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