GRANCOLOMBIAN POLYTECHNIC UNIVERSITY INSTITUTION

CULTURAL AND REGIONAL ECONOMY OF EUROPE

BUSINESS OPPORTUNITIES BETWEEN COLOMBIA AND EUROPE

HERNANDO CASTRO ORTIZ

JENNY MARCIALY MARTINEZ CORDOBA

SANDRA MILENA REYES PORRAS

INGRID TATIANA SANTA YONDAPIZ

BOGOTÁ, COLOMBIA

MARZO, 2020
 INTRODUCTION

Spain, Italy and France have been the countries with the highest bilaterality index at

present. It is in these where more information can be found in this regard. The goods

that Colombia exports to Europe such as fuels, edible fruits, minerals, floriculture, etc.,

are increasingly diverse. Colombia has become a preference in different aspects for

Spain, due to the evolution and mutual growth of its markets since they have a

commercial relationship. Colombia exports 73% of products to the European state.

In 2015, Italy had an important place for Colombia's exports to the EU, symbolizing

8.2% of the total sold, and in reciprocity with its imports it represented 9.9% of the total

from the EU. Currently, Colombia has managed to balance its trade relationship with

France, after presenting low rates of imports and exports. The return as the new entry of

French companies to the Colombian state has been evidenced, increasing from 180 to

210.

In conclusion, the most important reason why we have chosen these three countries is

due to the age of trade relations between them and Colombia, and after this the assertive

bilaterality.

 ITALY

Location: It is located in Western Europe and has a geographical area of 301,338 km2.

Population: It rises to 60,157,214.

Language: It is Italian, but some dialects such as German and French are also spoken in

the border

Currency: Euro.

Government: The Government of Italy is characterized by having a president who in

turn is the prime minister, which is a somewhat complicated but already assumed
situation in the Italian Republic; The head of state is in charge of ensuring and enforcing

the constitution in addition to moderating the various political tendencies that are

battling on the various issues. (Italia, 2019)

Economy and business in Italy

The main industries in Italy are manufactures and engineering. It exports industrial

manufactures especially industrial machinery, automobiles, chemicals, electronics and

textiles. Tourism also occupies an important place in its economy.

The financial services and communications sector has an increasingly important role in

its economy, the large state-owned enterprises have been very important in that sense

and have allowed the economic growth of the country, however these companies

nowadays are less useful and privatization is imposed.

Business culture

Italians have a reputation for being very friendly people, enjoy a fairly high level of the

same among the sexes. In turn they are very families so companies are usually governed

by a family leadership. Remember that they are known to traditional family clans in

sectors such as automotive, audiovisual, Executives are not very punctual people.

Italy's industrial triangle focuses on Milan, Turin and Genoa. While the important

trading

quality products, they value it more than at their price. It is recommended to highlight

the level of quality in the face of a negotiation as it brings a lot of value to the product

or service in question.
Trade balance.

The Italian Trade Balance Indce measures the difference in value between imported and

exported goods (exports minus imports). This is the largest component of a country's

balance of payments The export of data can give a reflection on the growth of Italy.

Imports provide an indication of domestic demand. Since foreigners must buy the

national currency to pay for the nation's exports, it can have significant effects on the

EUR.

A higher reading of the expected should be taken as positive/bullish for the EUR, while

a lower-than-expected reading should be taken as negative and bearish for the EUR.

Date of publication present precaution previous

18.03.2020 (January) 0,542B 2,813B 5,007B
14.02.2020 (Dec) 5,013B   4,890B
17.01.2020 (Nov) 4,872B   8,057B
(Italia - Balanza comercial, 2020)

Main import and export products

Italy is the 7th largest export economy in the world and the most complex economy 20o

according to the Economic Complexity Index (ECI). In 2017, Italy exported $482

Billion and imported $441 Billion, resulting in a positive trade balance of $40.8 Billion.

In 2017 the GDP of Italy was $1.93 Billion and its GDP per capita was $39.4 Mil.

Italy's main exports are mixed or unmixed products, prepared for therapeutic or

prophylactic uses, dosed, Tourism cars, petroleum oils or bituminous ore, except crude

oils, Parties and motor vehicle accessories.

It is the 7th largest export economy in the world and the 20th most complex economy

according to the Economic Complexity Index (ECI). In 2017, Italy exported $ 482

Billion and imported $ 441 Billion, resulting in a positive trade balance of $ 40.8
Billion. In 2017 Italy's GDP was $ 1.93 Billion and its GDP per capita was $ 39.4

thousand.

Doing Bussines

The main exports from Italy are Medicines except products consisting of mixed or

unmixed products, prepared for therapeutic or prophylactic uses, dosed, including those

administered transdermally) or conditioned, Tourist cars and other motor vehicles

mainly designed for the transport of people, including those of the family type (break or

station wagon) and racing, Oil or bituminous mineral oils, except crude oils;

preparations not elsewhere specified or included, containing by weight 70% or more of

petroleum oils or oils obtained from bituminous minerals, in which these oils, Parts and

accessories of motor vehicles of the and Articles of faucets and similar organs for pipes,

boilers, tanks, vats or similar continents, including pressure reducing valves and

thermostatic valves according to the Harmonized System (HS) classification. Its main

imports are passenger cars and other motor vehicles designed mainly for the transport of

people (break or station wagon) and racing cars.

 FRANCE
France, officially French Republic, French France or République Française, country of

northwestern Europe. Historically and culturally among the most important nations in

the Western world, France has also played a highly significant role in international

affairs, with former colonies in every corner of the globe. Bounded by the Atlantic

Ocean and the Mediterranean Sea, the Alps and the Pyrenees, France has long provided

a geographic, economic, and linguistic bridge joining northern and southern Europe. It

is Europe’s most important agricultural producer and one of the world’s leading

industrial powers.

POPULATION

France is the third largest country in Europe after Russia and Ukraine. As of January 1,

2009, 65,073,482 people live in the French Republic. 62,448,977 of these live in

metropolitan France, whereas 2,624,505 live in the French overseas departments and

territories. Approximately 20% of the population of France lives in Paris and the

metropolitan area surrounding Paris.

ECONOMY

France has the world's sixth-largest economy by nominal figures and the ninth largest

economy by PPP figures. It has the third-largest economy in Europe with Germany and

the UK in 1st and 2nd. The OECD is headquartered in Paris, the nation's financial

capital.

FINANCE

Although the French financial sector employed less than 13 percent of the labour force

in the early 21st century, it accounted for roughly one-third of the country’s total GDP.

Home to some of Europe’s largest banks and its second largest stock exchange, France

is a key player in the continent’s financial markets.

Euro coin

• GDP (US $): $ 2,829 billion (2014)

• GDP growth: 0.2% (2014)

• Composition of GDP: 76.4% services, 18.8% industrial, 1.8% agricultural.

• GDP per capita (US $): 42,733 (2014)

• Unemployment rate: 9.9% (2014)

• Inflation: 0.5% (2014)

EXPORTS

France is the 6th largest export economy in the world and the 14th most complex

economy according to the Economic Complexity Index (ECI). In 2017, France exported

$516B and imported $595B, resulting in a negative trade balance of $78.6B. In 2017 the

GDP of France was $2.58T and its GDP per capita was $42.9k.

The top exports of France are Planes, Helicopters, and/or Spacecraft ($48.8B),

Packaged Medicaments ($24.6B), Cars ($24.1B), Vehicle Parts ($18.4B) and Wine

($10.7B), using the 1992 revision of the HS (Harmonized System) classification. Its top

imports are Cars ($35.1B), Crude Petroleum ($20.6B), Refined Petroleum ($16.7B),

Aircraft Parts ($15.9B) and Petroleum Gas ($15.3B).

The top export destinations of France are Germany ($69.1B), Belgium-Luxembourg

($39.7B), Italy ($39.7B), Spain ($37.6B) and the United States ($36B).

IMPORT

In 2017 France imported $595B, making it the 7th largest importer in the world. During

the last five years the imports of France have decreased at an annualized rate of -1.5%,

from $639B in 2012 to $595B in 2017. The most recent imports are led by Cars which

represent 5.9% of the total imports of France, followed by Crude Petroleum, which
account for 3.46%.

The top import origins are Germany ($103B), China ($52.9B), Italy ($48B), Belgium-

Luxembourg ($44.6B) and Spain ($40.5B).

France borders Andorra, Belgium, Switzerland, Germany, Spain, Italy and Luxembourg

by land and the United Kingdom by sea.

It is the 6th largest export economy in the world and the 14th most complex economy

according to the Economic Complexity Index (ECI). In 2017, France exported $ 516

Billion and imported $ 595 Billion, resulting in a negative trade balance of $ 78.6

Billion. In 2017, France's GDP was $ 2.58 billion and its GDP per capita was $ 42.9

thousand.

Doing Bussines

The main exports of France are Other aircraft (for example: helicopters, airplanes);

space vehicles, including satellites and their launch vehicles and suborbital vehicles,
Medicines (except for heading products consisting of mixed or unmixed products,

prepared for therapeutic or prophylactic uses, dosed, including those administered

transdermally or conditioned, Automobiles of tourism and other motor vehicles

designed mainly for the transport of people, including those of the family type (break or

station wagon) and those of races and Wine of fresh grapes, including headed; grape

must, according to the classification of the Harmonized System ( HS) Its main imports

are passenger cars and other motor vehicles designed mainly for the transport of people,

including those of the family type (break or station wagon) and racing cars, petroleum

oils or bituminous minerals, except crude oils; preparations not elsewhere specified or

included art, with a content of petroleum or bituminous mineral oil greater than or equal

to 70% by weight, in which these oils and Petroleum gas and other gaseous

hydrocarbons.

 SPAIN

Spain, also called the Kingdom of Spain, is a transcontinental country, member of the

European Union, constituted in a social and democratic State of law and whose form of

government is the parliamentary monarchy. Its territory, with capital Madrid, is

organized into seventeen autonomous communities, made up of fifty provinces; and two

autonomous cities.

Spain is found both in southern Western Europe and in northern Africa. In Europe, it

occupies most of the Iberian Peninsula, known as Peninsular Spain, and the Balearic

Islands (in the western Mediterranean Sea); in Africa are the cities of Ceuta (on the

Tingitana peninsula) and Melilla (on the Tres Forcas cape), the Canary islands (in the

northeast Atlantic ocean), the Chafarinas islands (Mediterranean sea), the rock of Vélez

de la Gomera (Mediterranean sea), the Al Hoceima islands (gulf of the Al Hoceima

islands) and the Alboran island (Alboran sea). The municipality of Llivia, in the
Pyrenees, constitutes an enclave completely surrounded by French territory. The set of

territories is completed by a series of islands and islets off the peninsular coast itself.

It has an extension of 505 370 km², making it the fourth largest country on the

continent, after Russia, Ukraine and France. With an average altitude of 650 meters

above sea level it is one of the most mountainous countries in Europe. Its population is

47 100 000 inhabitants (2020), which by the aforementioned resolution amounts to

approximately 47 649 000 inhabitants. The peninsular territory shares land borders with

France and Andorra to the north, with Portugal to the west and with the British territory

of Gibraltar to the south. In its African territories, it shares land and sea borders with

Morocco. It shares with France sovereignty over the island of the Pheasants at the

mouth of the Bidasoa river and five Pyrenean facerías.

ECONOMIC INDICATORS

Spain has experienced a recovery in the economic balance in recent years, with an

average growth of 2.8% between 2015 and 2018. For 2019, the IMF estimates growth of

2.2% amid net exports and private consumption slower. Despite an increase in real

wages, however, private consumption has grown at the slowest pace since 2014, as

households increased their level of pension savings. The IMF foresees a further

slowdown in the Spanish economy in 2020 and 2021 (with 1.8% and 1.7%

respectively), mainly due to the instability of the political situation, a further increase in

protectionism at the global level and more investments. low. Domestic demand should

continue to be the main driver of growth.

Regarding public finances, the country's budget deficit (2.3% in 2019) should remain

stable in the following years (IMF). The budget benefited from an increase in income

from personal income taxes and social contributions. The debt-to-GDP ratio - which is
almost three times higher than before the 2008 financial crisis - fell to 96.4% in 2019,

and is expected to drop gradually to 94% in 2021, thanks to growth of nominal GDP

and lower borrowing costs. Private debt and outstanding credit are still at high levels,

but continue to contract. Structural reforms to give greater budgetary and financial

stability to the regions remain areas of increasing importance. Other pending reforms

are technological innovation to diversify the Spanish economy, promote better

employment conditions, an improved R&D ecosystem, and social programs based on

the European Pillar of Social Rights. In early 2019, Prime Minister Pedro Sánchez

increased the minimum wage by 22.3%. Inflation remained at 0.7% in 2019 (it had been

1.7% the previous year, IMF), and it is expected to gradually increase in 2020 and 2021

(1% and 1.4% respectively).

Main economic sectors

Agriculture contributes around 2.8% of Spanish GDP and employs 4% of the labor

force (World Bank, 2019). The country is home to almost a million agricultural and

livestock companies, covering 30 million hectares of land. Spain is the world's largest

producer of olive oil and the world's third largest producer of wine. The country is also

one of the largest producers of oranges and strawberries in the world. The main crops

are wheat, sugar beets, barley, tomatoes, olives, citrus, grapes and cork. Livestock

farming is also important, especially for pigs and cattle.

The industrial sector represents 20% of GDP and employment. Manufacturing is the

most important industry, since it represents around 11% of GDP (World Bank). The

industrial sector is dominated by textiles, industrial food processing, iron and steel,

naval machines, and engineering. New sectors, such as subcontracting for the

production of electronic components, information technology and telecommunications,

offer high growth potential.

The tertiary sector contributes 67.7% of GDP and employs 76% of the active

population. The tourism sector is essential for the country's economy, as it is the main

source of income for Spain, as it is the second most popular tourist destination in the

world (approximately 82 million tourists each year). The banking sector is also

important and is made up of twelve banking groups that include 52 private banks, 2

savings banks and 62 cooperative banks.

It is the 16th largest export economy in the world and the 28th most complex economy

according to the Economic Complexity Index (ECI). In 2017, Spain exported $ 296

billion and imported $ 332 billion, which resulted in a negative trade balance of $ 35.7

billion. In 2017, Spain's GDP was $ 1.31T and its GDP per capita was $ 38k.
Doing Bussines

Spain's main exports are automobiles, refined oil, vehicle parts, packaged medicines and

delivery trucks, using the 1992 revision of the HS Harmonized System classification. Its

main imports are crude oil, automobiles, vehicles, medicines, and petroleum gas. The

main export destinations in Spain are France, Germany, Portugal, Italy and the United

Kingdom. The main import origins are Germany, France, China, Italy and the United

States.

Bibliographic references:

 [DB]. (s.f.). Recuperado de https://espanol.doingbusiness.org/

 La economía | Unión Europea. (2020, 7 febrero). Recuperado 27 marzo, 2020,

de https://europa.eu/european-union/about-eu/figures/economy_es

 Gross domestic product 2018. (2020, 7 febrero). Recuperado 27 marzo, 2020, de

https://europa.eu/european-union/about-eu/figures/economy_es

 France Economy French Economy, business opportunities in France government

France business opportunities import and export opportunities. (s.f.).

Recuperado 27 marzo, 2020, de https://www.globaltenders.com/economy-of-

france.php/

 Adair, W., Brett, J., Lempereur, A. et al. (2004). Culture and negotiation

strategy. Negotiation Journal, 20(1), 87-111.

 OEC. (s.f.). OEC - France (FRA) Exports, Imports, and Trade Partners.

Recuperado 27 marzo, 2020, de https://oec.world/en/profile/country/fra/

 cultura comercial y de negocios de Italia. (s.f.). Obtenido de

http://www.ciaindumentaria.com.ar/plataforma/etiqueta-cultural-comercial-y-de-

negocios-de-italia/

 Economics, T. (2019). ITALIA - INDICADORES ECONÓMICOS. Obtenido

de https://es.tradingeconomics.com/italy/indicators

 IMPORTACION Y EXPORTACION DE ITALIA. (2019). Obtenido de

https://oec.world/es/profile/country/ita/

 Italia - Balanza comercial. (18 de 03 de 2020). Obtenido de

https://es.investing.com/economic-calendar/italian-trade-balance-182

 Italia, v. a. (2019). Información general de Italia. Obtenido de

https://www.viajaraitalia.com/informacion-general-de-italia/