The Most Important Learning Objective Outlined in This Chapter

Khalid N Aldabal (600)
Phase 2: ACQUIRING TOOLS Bancolombia in Colombia
Chapter 5: Trading Internationally
The Most Important Learning Objective Outlined in This Chapter
1 I believe that the important Learning Objective outlined in this Chapter is LO3, and the reason I chose this one is because the political systems greatly determine the imposition of tariffs which affect the international trade.
Facets That Have Changed from the Time of Peng’s writing to Present
According to Colombia Trade, Exports and Imports (2010), in 2008/09 Colombia’s primary exports were petroleum, coffee, coal, nickel, emeralds, bananas and apparel, and their primary imports were industrial/transportation equipment, consumer goods, chemicals, fuel and electricity.
* According to Colombia (n.d.a), Current primary exports are crude petroleum (45.4%), coal briquettes (13.4%), refined petroleum (4.9%), and coffee (4.7%); their primary imports are refined petroleum (11.7%) and automobiles (4.23%).
According to Colombia Trade, Exports and Imports (n.d.), in 2008/09 Colombia’s primary exports were to the United States, Venezuela and Ecuador, and top imports are from the United States, China, Mexico and Brazil.
* According to Colombia (n.d.a), currently top exports are to the United States, China, Panama, Spain and India, and top imports are from the United States, China, Mexico, Germany and Brazil.
* According to Colombia International Trade Center (n.d.a), the country has been facing challenges such as poverty and diversify its export base to reduce the dependence of oil. They priority materializing trade opportunities from free trade agreements. They are developing a strong services in the export sectors.
* The country faces development challenges such as reduce poverty and inequality, increase productivity and competitiveness, and diversify its export base and reduce dependence on oil exports.
According to Pearson (2015), an example of change would be change in policies by countries to control imports and exports.
For example, the highly priced sugar of United States which is caused by restrictive measures imposed on importation of sugar.
* United States has maintained tight quotas on sugar imports so that the domestic sugar is priced three times the world price sugars.
* Sugar refiners have been reported to be the influencers of this policy alongside other politicians.
Significant Impacts of These Changes on Bancolombia in Colombia
According to Butler(2016) , banks in Colombia charged high interest rates between 1960 and 1990 because the policies could not allow multinational banks to operate in the country.
* The impact on my country would be the reduction of interest rates charged by banks in Colombia.
* Another impact on my country would be stiff competition experienced by local firms arising from cheap products from countries such as China.
* Finally, another impact would be the intensification of businesses across the borders.
¯ For example, Bancolombia bank has opened its branches in Brazil and Panama among other countries that have signed trade treaties with Colombia.
Chapter 6: Investing Abroad Directly
The Most Importan...