Doing Business With A Company In Colombia: The Benefits And Challenges
January 26, 2012 by Ariel Dess
Filed under Marketing
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 located in South America with borders to Brazil, Ecuador, Panama, Venezuela and Peru. Its population is 45 million people. The legal tender is the Colombian Peso. Spanish is mainly spoken although the business community sometimes speaks English.
Most important 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. The United States, Venezuela and Ecuador are Colombia’s most important trade partners.
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 Online directories can also be helpful but they sometimes have outdated information which could make it harder to contact a company in Colombia.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 benefits and challenges. It could take some time in the beginning to find the company in Colombia that matches your requirements. Try to always purchase a credit report in order to have a clearer information about who you are going to do business with.
Ariel Dess specializes in assisting companies successfully import and export with Latin America. To access to his valuable resources, tips and links, click here distributor
