assignament 1

8/18/2019 Assignament 1

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Pontifcia Universidad Javeriana Cali

International Bussines

Department o accounts & Finance

Assignment 1

International Finance

Instructor: Dr Pra!a"aran

tudent: #icolas Potes C$ave%

antiago de Cali Fe!ruar' ()1*

Indicators o Balance o Pa'ment in Colom!ia


2/16

1+ Imports: Colom!ian Imports $ave !een decreasing since last 'ear dueto t$e $ig$ price o Dollar against Peso t$is situation presented to t$e,uctuation o t$e price o petroleum due t$at Colom!ia-s frst

e.portation is energetic mining so e.portation returns are a/ectingimportation+ It-s important to remem!er importations 0$ere getting $ig$since Colom!ia signed an ree trade agreement 0it$ U and ot$er onesColom!ia $as !een using t$e level o importations in Colom!ia redirectl' related o price o peso against Dollar+

(+ Foreign Direct Investment: In t$is c$art 0e see $o0 t$is indicator $as!een alling since ()1 !ut it 0as at $ig$ points t$an"s to agreements0it$ ot$er countries and t$e strategies Colom!ia $as used to ma"eattractive to invest in our countr' Also t$an"s to $ig$ price o Dollar isver' pro!a!le t$is 0ill increase again and ever' time Colom!ia is gettingmore attractive to Foreign direct investment due to economic acilitiesand due to is pro!a!le internal 0ar is going to end !' a part+


3/16

2+ 3il rent is an important indicator due to Colom!ia frst e.portationsare energetic mining resources and $aving a !ig enterprise li"e 4copetrol 0$ic$ produces $ig$ num!er o !arrels per da' Colom!ia isgetting man' profts t$at go to t$e 5DP orm t$is also t$is enterprise isin part rom t$e government so is !ig representative in t$is one+ 3il rents0ill al0a's !e $ig$ 6 o 5DP !ut t$is $ave !een alling since price o

!arrel $as allen o!streperousl' doe to Ara! countries $ave imposed alo0 cost per !arrel and t$e' can control t$e o/er o t$is good+ In t$emeaning 7$e get $ig$ 7$e price o !arrel Peso 0ill recuperate respect toDollar and t$e econom' 0ill improve+


4/16

8+Population in t$e 9argest cit': t$is indicator s$o0s a ver' !ig increaset$at continues !ecause ever' time less people 0ants to live in t$ecountr' side !ecause t$e' don-t $ave man' opportunities to progressand o education in t$is areas and also internal 0ar ma"es people romcountr'side migrates to larger cities loo"ing or opportunities and or a!etter lie t$is 0ill also increase due to 'oung people li"e more cit' liet$an a calm lie in t$e countr'side 0it$ arming and its activities+

+ Cost to import per container+ Along t$e cost to import 0e can see,uctuations rates t$at indicate a tendenc' to sta' at top costs Colom!ia $as a relative $ig$ cost due to t$e documentation needed is


5/16

reall' e.tense and Colom!ia $as onl' a !ig port t$at is t$e one t$atma"es t$e most containers entered to t$e countr' in Buenaventura andalso internal trou!les o logistics ma"es t$e s$ipment to !e slo0 and a$ard to get do0n t$e containers all t$is events and t$at t$e ot$ers ports$ave a lo0 capacit' ma"es a container relativel' compared 0it$ ot$er

countries e.pensive+

*+ Unemplo'ment rate: Unemplo'ment rate $as signifcantl' decreasedamong t$e econom' $as improved t$an"s to government e/ort andt$an"s to ne0 internationals agreement t$at allo0 e.port and import!eing an open mar"et !enefts are !igger also oreign direct investment$as made ne0 enterprises enter t$e countr' and generate moreemplo'ee+


6/16

+total ve$icle sales: ales in ve$icles $ave decrease along t$ee.c$ange rate $as !een getting $ig$er so as cars are imported productsand dollar is getting e.pensive t$is ma"es sales in cars decrease even it$ere is a lots o credits o/er to !u' cars+


7/16

;+ Corruption +Food In,ation: 7$is indicator s$o0 us $o0 in,ation in Colom!ia $as

!een gro0ing ever' 'ear more t$is $as to !e 0it$ social politicalinternal pro!lems and in t$e last 'ear natural causes as ?Fenomeno del#i@o ,oods and ot$er natural t$ings t$at can-t !e stopped ma"e oodto get ever' 'ear more e.pensive and reducing Colom!ians purc$asingpo0er+


8/16

1)+5asoline Price: 4ven Colom!ia $as one o t$e $ig$er gasoline price its price $as !een reduced t$an"s to t$e c$eap cost o petroleumimposed !' Ara!s Colom!ia e.ports lots o petroleum !ut even t$egasoline cost is ver' $ig$ !ecause Colom!ia don-t $ave a refner' 3urneig$!or countries as ene%uela $ave ver' lo0 prices o gasoline+ Andalso government $as a !ig ta. on it so it is ver' e.pensive even it isdecreasing as s$o0n+


9/16

Starbucks :


10/16

ultinational co/ee$ouse c$ain tar!uc"s inaugurated t$eir frst

location in Bogota on ednesda' as part o an e.pansion strateg' t$at

0ill open ) stores across Colom!ia+

tar!uc"s President Eo0ard c$ult% and and Americas director Cli/Burro0s !ot$ attended t$e opening ceremon' in Bogota stating t$at

t$e $istor' 0it$ GColom!iaH goes !ac" 82 'ears and 0e $ave al0a's

0anted to enter t$e Colom!ian mar"et 0it$ energ' according to

Colom!ia-s 4l 7iempo ne0spaper+

A tar!uc"s press release states t$at tar!uc"s stores in Colom!ia 0ill

!e t$e frst an'0$ere in t$e 0orld to serve e.clusivel' locall' sourced

tar!uc"s co/ee+

3


11/16

Juan alde% openl' 0elcomes t$e competition

Colom!ia-s largest co/ee$ouse c$ain Juan alde% launc$ed in ())( !'

Colom!ia-s #ational Federation o Co/ee 5ro0ers is out0ardl'

0elcoming t$e competition according to t$e Associated Press+

7$ere-s room in t$e mar"et or us !ot$ said Aleandra 9ondono $ead

o international sales or t$e Colom!ian c$ain asserting t$at t$e arrival

o tar!uc"s 0ill !oost t$e mar"et or gourmet ava even i sales at its

nearl' ()) stores in Colom!ia ta"e a $it over t$e s$ort term according

to t$e same source+

In ()18 alone Juan alde% $as e.panded its mar"et and opened stores

in out$ Korea ala'sia and Aru!a and opened its 1(t$ store in Peru

according to t$e co/ee c$ain-s 0e!site+

ources

• tar!uc"s Unveils Iconic First tore In Colom!ia EonoringCountr'-s


12/16

Kraft foods

Eistor'

Krat Foods !egan its $istor' in Colom!ia in 1>2) 0$en tandard BrandsInc+ included in its !usiness net0or" in t$is out$ American countr' andcreated t$e Fleisc$man Compan' Colom!iana+ In 1>1 a actor' in Palmira a production area o sugar and molassesessential ra0 materials or t$e manuacture o products Krat is installed+In 1>;1 t$e compan' is associated 0it$ Colom!ina A to ormColom!ina 5eneral Foods A Its main products 7ang and Kool Aidpo0dered sot drin"s recogni%ed 0orld0ide+

B' t$e end o 1>> in order to consolidate its operation in neogranadino

countr' Colom!ina A 5eneral Foods and 5eneral Foods !lend oColom!ia A in Krat Foods Colom!ia A !uilding a ne0 plant in onaFranca Pacifc one o t$e most modern in 9atin America or t$eproduction o !everages and po0dered drin"s+

In ())) 0it$ t$e merger 0it$ #a!isco


13/16

In recent times t$e national retailer $as !een dedicated to c$anging t$eimage o t$e Carreour outlets and is currentl' operating 28 Jum!o and8( etro $'permar"ets 0it$ *26 and 26 o t$eir sales respectivel' inormats o ()) sSuare meters and 2))) sSuare meters+

Eo0ever in a recent meeting 0it$ t$e media 4ric Basset managingdirector o t$e c$ain in Colom!ia said t$at Tt$e supermar"et ormat inColom!ia is gro0ing in pro.imit' ormats so most o t$e investments0ill !e made in t$ese ormats+T Ee added t$at t$e' T0ere e.perts in t$atline 0$ic$ 0ill gro0 in large cities 0$ile $'permar"ets 0ill gro0 in smallto0ns+T

In t$at sense t$e compan'Rs idea is to open smaller outlets !et0een)) sSuare meters and 2))) sSuare meters under t$eir etro !rand+ Inact t$is ormat is partl' developed !' Cencosud in C$ile t$roug$ t$eir Jum!o 4.press outlets+

Cencosud $as planned e.panding t$eir Jum!o !rand to medium si%edoutlets ever since t$e' acSuired t$e anta Isa!el c$ain in ())2 event$oug$ t$e' later !ac"ed out rom doing it and made no c$anges to t$ec$ain+ 7$e same $appened 0$en t$e' !oug$t t$e Carlo supermar"ets in())8+ 7$e'Rre curentl' doing it 0it$ etro in Colom!ia 0$ere t$e'e.pect t$e group to gro0 strongl'+

KFC, Kentucky Fried Chicken

7$e iconic Kentuc"' Fried C$ic"en a result o t$e success stor' oColonel anders its creator in t$e United tates !eore orld ar II ispreparing at ull speed on Colom!ian soil and no0 ater a corporaterene0al investors $olding ranc$ise in t$e countr' 'ou are !etting on anaggressive !usiness e.pansion !' t$ese co/ee lands+

T3ur development plan 'ear is to open eig$t to ten restaurants 0it$ an

investment o U L * millionT sa's Jaime 5ome% general manager oKFC Colom!ia and 0$o reveals t$at t$e strateg' is designed Tor fve'ears 0$ere t$e goal is to operate *) restaurants and ever'one in t$ecountr'+ T 7$e locals 0ill $ave 1) to 2)) sSuare meters Tto ensure agreat e.perience+ 7$e average investment or eac$ is L *))))) and it isimportant to clari' t$at 0e $ave opened 1( so t$at !' t$e end o t$is'ear 0e aim to $ave 1 in all 0or"ing+ T


14/16

A !usiness !ased among ot$er mar"et varia!les in fgures suc$ ast$ose recentl' pu!lis$ed t$e #ational Federation o Poultr' Fenavi andt$e Universit' o 9a alle 0$o confrmed t$at Colom!ians consume

more c$ic"en over !ee+ 7$is 'ear t$e fgure 0ill reac$ (2+; "ilogramsper 'ear 0$ile in ()) onl' 1> "ilograms 0ere registered per 'ear+

KFC ranc$ise in Colom!ia is divided into t0o ranc$isees one on t$eAtlantic Coast and Tus 0e $ave t$e rest o Colom!ia 0$ic$ is ;)6Tsa's t$e entrepreneur+ Also it remem!ers t$at t$e acSuisition 0as madeon 1 eptem!er ()11 and 0as in c$arge o a Tconglomerate 4cuadoriancapital 0it$ 0$ic$ 0e $ave restaurants in ene%uela and 4cuadorT+

7$e group is recogni%ed as KFC !ut in specifc accounts representing areseveral social reasons made !' 4cuadorian s$are$olders in t$at countr'managed 1 !rands suc$ as Juan alde% Pollos 5us Beans o Blac" ac$ain o Asian ood called #oa$ American Deli and !et0een Tuic' listTt$ere are also pastas as Il Capo+

T$at 0e did 0as to !u' t$e ranc$ise to t$ose 0$o alread' $ad inColom!ia and ormer ranc$isee $e "ept t$e part o t$e Cari!!ean coast+it$ t$e negotiation 0e acSuired 1( restaurants in edellin and Bogota+ 7$e frst mont$s o operation t$e plant dedicated to strengt$ening andoperation o restaurants rene0ing t$e mac$iner' and t$e second si.mont$s o t$e opening o ne0 points+ 3ne in t$e Calima all in BogotOone in 11) treet opened t$ree da's ago and anot$er in anta Fe all0$ic$ opened in a 0ee"+ T

it$in t$e !usiness plan appear several capitals suc$ as Cali !ut t$eot$er part o t$e !ig !et !usiness is in intermediate cities+ Te areloo"ing illavicencio 5irardot I!ague and Pereira+ ()12 0ill start t$isplan+ T Ee sa's t$at to ulfll it T0eRve gotten in several s$opping centerproects t$at are running and open in ()12 and ()18T+

5ome% noted t$at t$e aim is to ac$ieve a similar e.pansion to 0$ic$t$e' $ave 0it$ KFC in 4cuador 0$ere t$ere are alread' 1)2 $ome side atop o mind to over )6+ TIn ene%uela 0e 0ill close t$e 'ear 0it$ ()


15/16

KFC+ 3!viousl' t$e issue o investment reduced it to "no0 0$at t$epicture+ T

A millionaire gro0t$ !ased on 0$at Colonel anders institutionali%ed

rom t$e corners o $er "itc$en in Kentuc"' circa 1>2>: a ried c$ic"enprepared in record time 0it$ t$e touc$ eleven spices and ,avors toac$ieve 0$at $e called Tt$e recipe originalT

Pricesmart

7$e Pricemart c$ain o 0are$ouse st'le stores $as indicated it 0ill enter

t$e Colom!ian mar"et 0it$ plans to open its frst out$ American !ranc$in BarranSuilla+ Founded !' ol Price 0$o $ad previousl' ounded

Fedart and Price Clu! and 0$o 0as an inspiration or am alton o

alart ame Pricemart is a mem!ers$iponl' department store t$at

o/ers discount prices t'picall' or !ul" purc$ases o ood and $ouse$old

goods+ It is similar in concept to am-s Clu! BJ-s and Costco in t$e U+

Indeed Price Clu! 0as acSuired !' CostCo in t$e earl' 1>>)s+

Pricemart-s main !ase o operations is presentl' Central America 0$ere

it operates appro.imatel' 1 stores+ an Jose Costa


16/16

$ttp:VVcolom!iareports+comVfrststar!uc"sopenscolom!iarespectuanvalde%V

$ttp:VV000+elespectador+comVnoticiasVeconomiaVseran*)restaurantes"ccincoanosarticulo2218)

$ttp:VV000+res$pla%a+comVarticleV111(VColom!iaCencosudenterst$econveniencestoremar"et

$ttp:VV000+elempleo+comVsitiosempresarialesVcolom!iaV"ratWne0V$istoria+asp

$ttp:VVcolom!ia!eat+comVmainV()11V)V)8Vpricesmartenterscolom!iamar"et!arranSuillaV
http://colombiareports.com/first-starbucks-opens-colombia-respect-juan-valdez/http://colombiareports.com/first-starbucks-opens-colombia-respect-juan-valdez/http://www.elespectador.com/noticias/economia/seran-60-restaurantes-kfc-cinco-anos-articulo-373140http://www.elespectador.com/noticias/economia/seran-60-restaurantes-kfc-cinco-anos-articulo-373140http://www.freshplaza.com/article/115127/Colombia-Cencosud-enters-the-convenience-store-markethttp://www.freshplaza.com/article/115127/Colombia-Cencosud-enters-the-convenience-store-markethttp://www.elempleo.com/sitios-empresariales/colombia/kraft_new/historia.asphttp://www.elempleo.com/sitios-empresariales/colombia/kraft_new/historia.asphttp://colombiareports.com/first-starbucks-opens-colombia-respect-juan-valdez/http://colombiareports.com/first-starbucks-opens-colombia-respect-juan-valdez/http://www.elespectador.com/noticias/economia/seran-60-restaurantes-kfc-cinco-anos-articulo-373140http://www.elespectador.com/noticias/economia/seran-60-restaurantes-kfc-cinco-anos-articulo-373140http://www.freshplaza.com/article/115127/Colombia-Cencosud-enters-the-convenience-store-markethttp://www.freshplaza.com/article/115127/Colombia-Cencosud-enters-the-convenience-store-markethttp://www.elempleo.com/sitios-empresariales/colombia/kraft_new/historia.asphttp://www.elempleo.com/sitios-empresariales/colombia/kraft_new/historia.asp

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