FIRST DRAFT

PIF

María José Agudelo Restrepo

María Samantha Montoya Manrique
Victor Julian Jimenez Zuluaga
Alejandro Olarte Blandon

Alexander Balzan
Globalization and competitiveness

Politécnico Grancolombiano
Medellín-Colombia
2020

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INTRODUCTION
The purpose of this document

SPECIFIC OBJECTIVE
To study the causes and effects obtained from the three institutions in Global
Competitiveness, Business Report and Economic Freedom of the 4 countries chosen:
Colombia, China, Switzerland and Argentina.
● To Understand the reason for the crisis in Argentina taking into account the
rankings of the studied indicators.
● To study the reasons why China and Switzerland are at the top of the rankings.
● To Analyze the behavior of Colombia taking into account the studied indicators.
● To look for objectives that allow to improve the numbers of Colombia.

BACKGROUND
● INDEX OF GLOBAL COMPETITIVENESS
Its an index obtained through a survey that measures the ability of countries to provide a
better quality of life for citizens, also analyzes how a country productively uses its resources;
the report also presents a list of the weaknesses and strengths of each country, identifying the
priorities of each. is published annually by the World Economic Forum since 1979.
● DOING BUSINESS REPORT
This index yields quantitative data that tell us how easy a country is to do business, focuses
on small and medium-sized enterprises, and the regulations that directly affect them. Doing
Business stimulates competition between the economies analyzed and was created by the
World Bank in 2002.

● INDEX OF ECONOMIC FREEDOM

It is a series of 12 indicators created by The Wall Street Journal and the Heritage Foundation.
It was inspired by the spirit of the riches of nations in 1995 Its main objective is to measure
the degree of economic freedom that each country has. The 2019 ranking scores data between
0 and 100, where 0 means "absence of economic freedom" and 100 means "total economic
freedom".
● KEYWORDS
Index Competitiveness Business
Developed countries Globalization

JUSTIFICATION

TABLE 1. INDEX CLASSIFICATION

COUNTRY/INDEX GLOBAL DOING BUSINESS INDEX OF ECONOMIC
 COMPETITIVENESS REPORT 2020 (WB) FREEDOM 2020
REPORT 2019 (WEF)
RANK SCORE RANK SCORE RANK OVERALL
SCORE
COLOMBIA 57 62.7 67 70.1 45 69.2
SWITZERLAND 5 82.3 36 76.6 5 82.0

ARGENTINA 57.2 126 59.0 149 53.1

83

CHINA 28 73.9 31 77.9 103 59.5

SOURCE: OWN PRODUCTION, DATA OBTAINED FROM: GLOBAL COMPETITIVENESS REPORT 2019
(WEF), DOING BUSINESS REPORT 2020 (WB) Y INDEX OF ECONOMIC FREEDOM 2020

Colombia, located in South America; Colombia has a population of 49,834,000 people this
places it at number 29 in the population table, the country is considered to have a very low
standard of living for its inhabitants due to the per capita GDP of Colombia in 2018 was
5,625 euros. Moreover, Colombia’s external debt exceeds 52 per cent of GDP, a debt of 3
euros per inhabitant. Colombia ranks 36th on the United Nations Human Development Index,
with Colombia ranked 90th, making it one of the countries with very little development.

Switzerland, located in Western Europe; Switzerland has a population of 8,544,527 people

this places it in the 100th place in the population table, the country is considered to have a
good standard of living for its inhabitants due to the per capita GDP of Switzerland is
73.2110 euros plus the salary of its inhabitants is the highest in the world, the external debt of
Switzerland exceeds 42% of the GDP being thus a debt of 30 euros per inhabitant.
Switzerland ranks 85th in the corruption index, making it one of the least corrupt countries in
the world, and in the United Nations Human Development Index, Swiss people rank among
the best quality of life in the world.

Argentina, located in South America; Argentina has a population of 44.560.000 people this
places it in the 31st place of the population table, the country is considered to have a very low
standard of living for its inhabitants due to Argentina’s per capita GDP in 2018 was 9,933
euros, and Argentina’s external debt exceeds 80% of GDP, its per capita debt is 8,492 euros.
Argentina’s Human Development Index ranked 47th and its inhabitants still had a low
standard of living. Argentina ranks 85th in this ranking, with the perception of corruption by
its inhabitants being fairly low.

China, located in East Asia; China has a population of 1,395,380,000 people this places it in
the most populous country in the world, this country is considered to have a low standard of
living since its GDP per capita in 2018 was 8,263 euros, and China’s external debt exceeds
50% of GDP. China’s Human Development Index ranks 86th and its people have low human
development. China ranks 87th in the corruption ranking being this very low.

Investigation.
 150 years ago Switzerland was a poor country. Located inland, it is rugged and mountainous
and has very little arable land - the plain area was marshy floodplains knocked out by
malaria, as this small cutout from an old map reveals.
And not only this, there are few primary resources such as mineral deposits. The few
remaining mines were nearly depleted in the medieval era, as were the Zügen Gorges silver
mines in the Landwasser Valley. The only mines that continue today are the salt mines near
Basel and Bex in the Rhone Valley, on the upper reaches of Lake Geneva. In the Frick Valley
lay an iron mine that stopped working in the 1960s, and an asphalt mine in the Travers
Valley, which was depleted in the 1980s.
For this reason it is said to be a country that avoids war, the last civil war took place in 1847
between Catholics and Protestant cantons, from which the modern federal state that exists
today was born. Specifically, Switzerland did not participate in the European wars. In World
War II, Switzerland was surrounded by Axis powers. Even Schaffhausen was once
bombarded by the North American Air Forces for a navigation error and they took over his
restitution. While its neighbors were destroyed, Switzerland kept its infrastructure almost
intact.To begin with, Colombia is a country rich in biological and water diversity since it has
two oceans, and two seas that can interconnect. In addition, many minerals, precious stones,
oil, a variety of plants and animals abound thanks to this it is considered a paradise. But if it
has so many things that can help progress, why is it considered a poor country?
Colombia is a country that is governed by the law of minimum effort, which means that there
is no responsibility. We are improvisers and we do not seek to improve ourselves. Discipline
does not govern us which causes us to fall into poverty.
We also lack discipline in the economy. In Colombia, unprocessed raw materials are not used
since instead of selling raw materials in their natural state, they should be transformed into
the product to market it.
In conclusion, Colombians are the main causes of poverty since they do not take advantage of
all the resources they have if they were disciplined and responsible. Colombia would go from
poverty to prosperity. It also happens to them that we are very lazy in terms of work, the
Swiss They work 8 hours and Colombia works 6 hours because the other two are dedicated to
being lazy.
Also if there is no productivity it is possible that poverty will reach us, also because of drug
trafficking I believe in the Colombian's mind to get money easily without much effort.
It is also important to make everyone aware that you have to work hard to get out of poverty.
Another reason why Colombia and Switzerland are in the positions they are in, is the issue of
war, as we well know, Colombia has always been mired in a war that has not allowed it to
fully develop, on the other Besides this, there is corruption, which, as mentioned above, drug
trafficking and politics are the easiest ways to get money in the easiest and most painful way

that can exist .

Forty years ago, it was common for many Chinese families to have difficulty buying clothes
or food.
Today, one of the most typical images in Beijing is that of long queues in Apple stores: that
of young people going out with several bags with new iPhones or computers at the same time
(according to portfolio).
In just four decades, the Asian country has undergone an incomparable change, which has
enriched it to become the second world economy and has allowed 740 million people to be
lifted out of poverty, according to official figures.
The program credited with success was called "Reform and Openness," and was launched by
the late leader Deng Xiaoping.
Under the idea of a "socialism with Chinese characteristics", Deng broke with what was
established and promoted a series of economic reforms, focused on agriculture, the
liberalization of the private sector, the modernization of industry and the opening of China to
foreign trade.
The People's Republic of China has rapidly become, without contemplation or pause, a
growing economic power. It was industrially reformed, with very evident supports in industry
and in the scientific development that emerged from the 1979 university reform, which had as
its central point its de-ideologization and the full introduction of the main world scientific and
technological developments.
To this economic power, China was combining a very serious military modernization, an
expanding diplomacy and a strong orthodoxy in the management of its currencies and the
controlled reception of foreign direct investment.The epicenter of economic development in
the world, in the last two decades, and despite the good economic performance of the
European Union and the United States has gone to the Asia Pacific, along with the routes that
connect to the Indian Ocean, concentrating three of the major global economies: China, Japan
and India.
The three, in turn, are among the countries that have acquired increasing relevance in
scientific development and technological application in the world, and as if that were not
enough, they concentrate the largest population on the planet.
Based on this dynamic, China launched, more than five years ago, the trade and political
influence network informally called 'the new silk road', which connects more than sixty
through railways, roads and seaports. countries, in the middle of a network that has China as
its center.
Argentina is going through an economic crisis marked by an inflation rate that is among the
highest in the world and that the swings in central bank policies fail to contain.
Over 50% annually and fueled by a sharp depreciation of the domestic peso in the last year,
inflation hit economic activity and drove poverty.
Repeated financial and exchange rate crises and defaults over decades made Argentines lose
confidence in their currency and seek refuge for their savings in the dollar. That is why
Argentina is a "bi-monetary" economy, and what happens to the dollar is felt in the domestic
prices in pesos.
After taking office in 2015, Macri promoted a cut in public spending in an attempt to reverse
the country's strong fiscal deficit, which many consider to be the counterpart of inflationary
processes in Latin America's third largest economy.
But the reduction of subsidies to public services, part of the cut plan, increased the rates for
these services and fueled inflation even more, while affecting consumption by reducing the
purchasing power of Argentines.
Economic activity, which was already suffering from the fall in consumption, received the
coup de grace when the central bank raised interest rates further in order to contain prices,
making financing more expensive for businesses and individuals.
That cocktail aroused growing distrust of the markets in the government's financial program
and triggered a capital outflow: the peso collapsed 50.5% in 2018 and 15% so far this year.
Given the lack of willingness of private entities to lend money to the country and the
volatility suffered by the peso, Macri sought to provide certainty to the markets by resorting
last year to the International Monetary Fund (IMF), which granted him a record US credit
line $ 56.3 billion.
But mistrust was not diluted. In the last of its attempts to contain the dollar and inflation -
backed by the IMF - the central bank announced changes on Monday that will allow it to
intervene more in the exchange market, leaving behind its policy of free floating between
price bands.

Justification: Why is it important for an International Business professional. Por qué eligieron esos
países…. Basados en qué?
WRITE IN THIRD PERSON: We, I, our, mine, us,
Introducción: QUÉ HAY DENTRO DEL DOCUMENTO.

INVESTIGACIÓN: Cuál es la problemática que van a analizar

Análisis de los países.

BIBLIOGRAFÍA:

https://es.ihodl.com/analytics/2017-02-19/por-que-es-suiza-un-pais-tan-rico/
https://es.wikipedia.org/wiki/Conflicto_armado_interno_de_Colombia
GLOBAL COMPETITIVENESS REPORT 2019 (WEF)
DOING BUSINESS REPORT 2020 (WB)
INDEX OF ECONOMIC FREEDOM 2020
CORRUPTION PERCEPTION INDEX 2018
HUMAN DEVELOPMENT INDEX
POPULATION GROWTH