FIRST DELIVERY OF THE PROJECT

CULTURE AND BUSINESS IN EUROPE

  

 
 
INSTITUCIÓN UNIVERSITARIA POLITÉCNICO GRANCOLOMBIANO
FACULTY OF ADMINISTRATIVE, ECONOMIC AND ACCOUNTING SCIENCES
INTERNATIONAL BUSINESS
CULTURE AND REGIONAL ECONOMY OF EUROPE
2019
 
 

TABLE OF CONTENTS

1. INTRODUCE..................................................................................................................2

2. CHARACTERUZATION OF THE COUNTRIES.........................................................3

2.1 GEOGRAPHICAL ANALYSIS...................................................................................4

2.2 ECONOMY...................................................................................................................4
 2.3 BUSINESS CULTURE.................................................................................................6
2.4 DOING BUSINESS......................................................................................................8
3. COMMERCIAL RELATIONSHIP BETWEEN COLOMBIA AND THE

EUROPEAN UNION.............................................................................................................9

3.1 RELATIONSHIP BETWEEN BELGIUM AND COLOMBIA.....................................9

3.2 RELATIONSHIP BETWEEN SPAIN AND COLOMBIA............................................9

3.3 RELATIONSHIP BETWEEN NETHERLANDS AND COLOMBIA..........................9

4. COMMERCIAL ASPECTS BETWEEN COLOMBIA AND THE EUROPEAN

UNION..................................................................................................................................12

5. BUSINESS OPPORTUNITY BETWEEN COLOMBIA AND THE EUROPEAN

UNION..................................................................................................................................13

5.1 COMMERCIAL BUSINESS OPPORTUNITIES WITH SPAIN.........................13

5.2 COMMERCIAL BUSINESS OPPORTUNITIES WITH BELGIUM..................14
5.3 COMMERCIAL BUSINESS OPPORTUNITIES WITH NETHERLANDS........15
6. CONCLUSION..............................................................................................................16

REFERENCES......................................................................................................................17

1. INTRODUCE

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Through our economic research we select the following countries: Spain, Netherlands and

Belgium who are part of the European Union.

During the development of the investigation we will know what are the options, customs

and forms of negotiation between these countries and

Colombia. Through the development of trade agreements such

as free trade agreements, we can demonstrate the benefits that

are obtained between them, the elimination of all restrictions

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and the strengthening of economies, generating a significant increase in their commercial

activities.

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 2. CHARACTERUZATION OF THE COUNTRIES

Official Name Spain Netherlands Belgium

Capital Madrid Amsterdam Bruselas
Amsterdam, Rotterdam,
Delft, Den Haag, Gouda,
Utrecht, Maastricht,
Madrid, Barcelona,
Eindhoven, Groningen,
Valencia Sevilla, Zaragoza, Bruselas, Brujas,
Deventer, Haarlem,
Important Cities Malaga, Murcia, Palma de Amberes, Gante, Lieja and
Alkmaar, Hoorn,
Mallorca, Las Palmas y Namur
Enkhuizen, Dordrecht,
Bilbao.
Amersfoort, Marken,
Volendam and Zaanse
Schans
October 12 - Foundation of April 30 - Foundation of July 21 - Foundation of the
National Day
the Nation the Nation Nation
Year of declaration of Independence 1808 1885 1822
GEOGRAPHICAL ASPECTS
Surface 505 944 km² 41.540 km2 30.530 km2
Population 46 934 600 (2019) 17.282.163 11.467.923
Language Espanish Dutch Dutch, French and German
Religion Catholic Catholic and Protestant Catholic
Goverment Parliamentary monarchy Constitutional monarchy Parliamentary monarchy
Current President Pedro Sanchez Mark Rutte Felipe de Bélgica
ECONOMY
GDP 2019 311.139 M.€ 201.599 M.€ 115.393 M.€
External / GDP (External Debt over
GDP) (2018) 1.173.303 M.€ 405.428 M.€ 459.651 M.€
Inflation 2019 1.21% 1.9% 1.74%
Unemployment Rate 2019 13.08% 3.5% 5.5%
Salary mlv for 2019 1,050.00 € 1,635,60 € 1,593,81 €
Human Development Index (2017) 0.891 0.931 0.915
Doing Business Ranking 30 Ranking 36 Ranking 45
The olive, barley, wheat,
Beet or beet, potatoes or
sugar beets, corn, potatoes, Potatoes, onions, tomatoes
potatoes, wheat, barley,
rye, oats, rice, tomatoes and strawberries.
fruit, tomatoes, and flax.
Agricultural products and onions
Energy, Metal production
Raw materials, machinery,
and ransformation, mineral
equipment, chemicals, raw
industries chemical industry, Farming, Energy,
diamonds,
waste and wastewater Information Technology
Main Industries pharmaceuticals, food
management, manufacture (IT), Logistics and
products, transportation
and ransformation of paper Creative sector
equipment, petroleum
and wood, livestock and
products.
intensive aquaculture.
Exports 2018 292.063,2 M.€ (24.29%) 613.142,2 M.€ (79,21%) 395.027,7 M.€ (87.69%)
Imports 2018 328.462,6 M.€ (27.32%) 546.091,3 M.€ (70.55%) 381.031,2 M.€ (84.58%)
Currency Euro (€) Euro (€) Euro (€)
Exchange Rate ( Colomian Pesos ) 1 EUR = 3.790,30 COP 1 EUR = 3.790,30 COP 1 EUR = 3.790,30 COP
International Reserves (2018) 70.633.189.428 € (1,78%) 38.431.677.255 (0.03%) 26.856.799.009 (2.70%)

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2.1 GEOGRAPHICAL ANALYSIS

Spain which capital is Madrid, with a population of 46,659,302, they handle the Euro as the

same currency as the Netherlands and Belgium, it is clear that before 1999 the Belgians

managed the Belgian Franc. Spanish is the main language in Spain, it is the only country of

the three in which Spanish is spoken, because in the Netherlands the main language as in

Belgium is Dutch, it is clear that in Belgium and the Netherlands other languages are

spoken So they are called multi-linguistic countries. The majority of Spanish people and

Belgians are consider themselves Christians different the Dutch population since less than

half consider themselves Catholic, the rest don´t have an official religion. Belgium has a

lower population than Spain since it has 11,467,923 population and the Netherlands has a

little more than Belgium but no more than Spain since it has 17,282.163 population. The

capital of Belgium is Brussels and the Netherlands is Amsterdan. On the other hand, our

three countries investigated, Spain is the only one that didn´t participate in the construction

of the European Union.

2.2 ECONOMY

To the slowdown in private consumption and investment (IMF). Dutch public finances are

relatively strong: in 2018, the debt / GDP ratio fell to 53.1% (from 56.5% the previous

year) and is expected to decrease to 49.9% in 2019, well below the 60% threshold set by

the E U as a target for member countries.

The Netherlands has a very high per capita income, which is distributed relativelyequitably.

GDP per capita is above the EU average and was estimated at USD 52,503 in 2017 (World

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Bank). The unemployment rate is relatively low, 3.9% in 2018 (after a maximum of 7% in

2015) and should remain unchanged in the coming years. At the same time, the workforce

expanded significantly in the first part of 2018, suggesting that there is still room for solid

employment growth in the short term. On the other hand, Belgium is the 24th economy by

volume of GDP. Its public debt in 2018 was 459,651 million euros, with a debt of 102% of

GDP is among the countries with more debt compared to the GDP in the world. Its per

capita debt is € 40,081 per capita, then its population are among the most indebted in the

world. The last annual CPI variation rate published in Belgium is August 2019 and was

1.3%. The GDP per capita is a very good indicator of the standard of living and in the case

of Belgium, in 2018, it was € 39,500, so it is in a good position, since it ranks 20th in the

ranking, which It assumes that its population has a good standard of living in relation to the

196 countries of the GDP per capita ranking, in spite of the Human Development Index or

HDI, which the United Nations prepares to measure the progress of a country and that

ultimately we shows the standard of living of its population, indicates that the Belgians

have a good quality of life.

Spain is the 11th economy by volume of GDP. The principal cause of Spain's crisis was the

housing bubble and the accompanying unsustainably high GDP growth rate, generating a

level of unemployment higher than 15 %, which has not been eradicated even today.

Because of the great Spanish depression that began in 2008 during the financial world, the

developed countries were mainly affected. "In the final stretch of the quarter there could

have been some weakening of consumption, as a result of the loss of purchasing power that

is derived from the rebound of inflation". (El País, 2018) “However, the Spanish economy

has ground to superior levels of 3%, principally in the last 3 years consecutively, this

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recuperation has been motivated due to strengthening exports. The trade represents 62% of

GDP, followed by automotive industry 16%, principally tourist cars, tractors and auto parts.

In addition, oil derivates, wine, fruits and some vegetables”. (Review economic

commission for Latin América and the Caribbean edition 100, April 2010).

2.3 BUSINESS CULTURE

The Dutch have developed an egalitarian society, and all, in spite of employment or

income, are treated with respect and consideration. For the Dutch punctuality is very

important in all areas of life, but acquires special relevance in the workplace. If you are

late, you should have a good justification, because being late for an interview or an

appointment will cause your trust to deteriorate and may worsen possible future

relationships, in addition to negatively influencing the first impression you cause. The

Dutch are very good businessmen and are used to dealing with foreigners. Dutch

negotiators are conservative and strong and can be very stubborn and tough in negotiations.

They are willing to innovate and experiment, but they are not usually very risky. Consensus

is very important and negotiations are not usually terminated until the parties agree.

On the other hand Spain

Personal meetings are essential for Spanish companies, it is a tradition to give promotional

material, notebook, pen or calendar to promote companies. "If the reason to visit Spain is a

business, it is useful to know that Spain is in place 28 of the 190 that make up the Doing

Business ranking, which classifies countries according to the ease they offer to do

business." (expansión 2018). and finally we talk about the business culture of Belgium the

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business protocol and good manners are important, since they allow to make a difference in

a competitive market; They contribute to leadership, reiterate the commitment to quality

and excellence and, at the same time, build trust. Therefore, it can be said a company that

dominates the culture to which it is desired to insert is destined for success.

The negotiations that exist between Europeans and Mexicans are affected or limited at

certain points due to the cultural differences that exist between these two regions. It is a

high-income nation that uses the Euro (€, EUR) as its currency; In addition, it is a member

of the OECD and its economy is dependent on foreign trade, to do business in the country,

it is essential to notify local authorities in advance.

In spite of the export and import we can find that; Belgium is the 13th largest export

economy in the world, Spain is the 16th largest economy and The Netherlands is the 8th

largest export economy in the world, these three countries have in common several export

products such as: passenger cars, Petroleum or bituminous mineral oils, medicines, among

others, Belgium as well as the Netherlands additionally exports, human blood, animal blood

prepared for therapeutic uses. Spain exports parts and accessories of vehicles, vehicles for

freight transport and The Netherlands exports, in addition to what has already been said,

Radiotelephony, radiotelegraphy, radio or television broadcasting apparatus, television

cameras; camcorders, digital cameras. These three countries deal with same export

destinations; Germany, France, the United Kingdom and Italy. Belgium exports from the

Netherlands. Likewise, the three countries share import products such as: Natural Gas,

drugs for retail sale, crude oil, among others. Its imports goods come from Germany, the

Netherlands, France, the United States and the United Kingdom. This country imports

Natural Gas in a gaseous state, Its main products like Belgium handles tourism cars, oils,

medicines, but also exports. Its most imported products are crude oil, oil refining, spare

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parts and petroleum gas. The main export destinations are: France, Germany, Portugal, Italy

and the United Kingdom, and import from Germany, France, China, Italy and the United

States. Finally, the Netherlands is the 8th largest export economy in the world

2.4 DOING BUSINESS

According to our research, we can show that the countries selected in this project are in an

excellent position compared to other countries. We have Spain that occupies the 30th place,

Netherlands follows it with the 36th and Belgium ends with the 45th position. What could

be said that its development has been favorable for its growth as much as a country and

participation in the European Union.

On the other hand we show that in Netherlands the payment of the minimum monthly

salary equivalent to 1,635.60 euros is better, Belgium is followed with 1,593.81 euros and

finally Spain with 1,050.00 euros. That is, in Spain we have a higher unemployment rate

with 13%, while Belgium with 5% and Netherlands with the lowest rate of 3% favoring its

economic development as a country.

Regarding inflation we have that Netherlands has a rate of 1.9% Belgium follows with a

rate of 1.7% and Spain 1.2%.

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 3. COMMERCIAL RELATIONSHIP BETWEEN COLOMBIA AND THE

EUROPEAN UNION

3.1 RELATIONSHIP BETWEEN BELGIUM AND COLOMBIA

According to the consultation from different sources we show that the commercial

relationship between Colombia and Belgium is excellent during the last years where mutual

benefits such as the export of some agricultural products produced by Colombia are

obtained and these are exported to Belgium generating common agreements agreement.

3.2 RELATIONSHIP BETWEEN SPAIN AND COLOMBIA

During the last years, the commercial relationship between Spain and Colombia has

intensified given that it is the ninth country as a supplier and who in turn produces large

imports of heavy goods among other industrial products, additionally the discovery of a

Spanish galleon on the Colombian coast.

3.3 RELATIONSHIP BETWEEN NETHERLANDS AND COLOMBIA

The relationship that exists today between the Netherlands and Colombia is not broad

enough, however, it is important that this country be of great importance when Colombia

was in the peace process since that support was of great importance at that time, currently

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seeks to strengthen relations with logistical support and in the transfer of technological and

scientific knowledge.
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The European Union is Colombia's second largest trading partner, representing 14.7% of

foreign trade and positioning itself behind the United States (26.8%) and surpassing China

(12.6%) and Mexico (5.95% ). The Netherlands, Spain, Belgium, Italy and Germany stand

out as the most important export destinations, being within the twenty destinations where it

was most exported in 2017.

The European Union, with its 28 Member States and a population of more than 500 million

inhabitants, is the main commercial block worldwide. Trade policy is an exclusive

competence of the European Union, that is, that only the Union is competent in matters of

commercial legislation and the conclusion of international trade agreements. The scope of

the European Union exclusive powers includes trade in goods, services, commercial aspects

of intellectual property and foreign direct investment (FDI).

The Trade Agreement between Colombia and the European Union, in force since August

2013, is a modern agreement that goes beyond trade and tariff measures, also covering the

area of services, intellectual property, or public procurement, between others. In addition,

the Agreement covers Trade and Sustainable Development (CDS), in line with the new

European commercial strategy defined in October 2015: "Trade for all: Towards a more

responsible trade and investment policy". The latter is based on fundamental principles of

efficiency, transparency, and respect for Human Rights, and aims to ensure that the benefits

of trade are mutual and reach consumers, workers, and producers, with particular attention

to small and medium enterprises and Citizens of developing countries.

1
Taken from the page: https://www.analdex.org/2018/07/26/tlc-entre-colombia-y-la-union-
europea/
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Colombia is the first trading partner of the European Union within the Andean Community,

and the fifth in Latin America with a volume of transactions that reached 11.6 billion euros

in 2017. For its part, the European Union is the second trading partner of Colombia and the

first source of foreign direct investment in the country.

In 2017, Colombian exports to the European Union reached a value of 5.6 billion euros,

especially mineral products (46%), such as oil and coal, and agricultural products (43%),

among which fresh bananas stand out (918 million euros) and coffee (604 million euros). In

the same period, Colombian imports from the European Union totaled 6,000 million euros,

consisting mainly of machinery and mechanical appliances (1,180 million euros),

pharmaceutical products (730 million euros), vehicles (474 million euros) and aircraft (282

million euros).

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 4. COMMERCIAL ASPECTS BETWEEN COLOMBIA AND THE
EUROPEAN UNION

Taking into account the main commercial aspects between Colombia and the selected

countries of the European Union, we could denote the following:

• Education

• Rural health

• Water management

• Electronic certification

• Colombian labor abroad

• Oil industry

• Farming

With the previous aspects, we can analyze that, both for the European Union and for

Colombia, it is a great alliance to work together, since some aspects complement each other

in such a way that it allows a good commercial relationship to achieve economic, social and

cultural results developing. for the countries that conform. In recent years, Colombia has

achieved an excellent position in the European Union through the expansion of bilateral

agreements given the benefits that have been obtained from both imports and exports.

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 5. BUSINESS OPPORTUNITY BETWEEN COLOMBIA AND THE

EUROPEAN UNION

The great commercial opportunities offered by the selected countries that make up the

European Union mean that foreign investment in Colombia is promoted.

That is, it contributes to a greater participation of more companies that wish to invest in

Colombia and obtain our products of better standards and quality.

In addition, it can generate more business opportunities thanks to growth prospects. Not

only do we have oil and coal exports, but we also have a growth in services.

It is also of greater importance to point out the commercial opportunities that the European

Union has despite the variation it had with the euro and in the same way with the dollar,

taking into account that it favors some markets and others do not.

5.1 COMMERCIAL BUSINESS OPPORTUNITIES WITH SPAIN

This country has an important level of investment in Colombia, taking into account that

Spain has a high potential in the market and, in addition, given its strategic location in the

region, it serves as a bridge between South America and Central America. The sectors with

the greatest potential are:

• agroindustry

• manufacture

• clothing

• tourism

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 • services

Main Spanish companies present in Colombia are Fenosa: natural gas subsidiary, BBVA

bank, Repsol, Codensa, Iberia, Telefónica, Alcatel, Grupo Prisa, Editorial planet,

Colsanitas, Mapfre.

In this way, it is clear that Spanish investment is present in several sectors, mainly in

energy, finance, transport, communications, health and insurance; which includes Spain as

a development power for the country, which offers a variety of business opportunities for

Colombian entrepreneurs.

The main fairs or events that are held in Colombia about Spanish companies are:

• FIIB – Feria Internacional Industrial de Bogotá.

• FERROFORMA – Feria Internacional de Ferretería.

• CONSTRUMAT – Salón Internacional de la Construcción.

• ALIMENTEC – Feria Internacional de la Alimentación y Hotelería.

• EXPOCONSTRUCCION Y EXPODISEÑO – Feria del Sector Construcción y

Arquitectura.

• ALIMENTARIA Barcelona – Salón Internacional de Alimentación y Bebidas.

• MEDITECH – Feria Internacional de la Salud.

• FIMA – Feria Internacional del Medio Ambiente.

• AGROPEXPO – Feria del Sector Agropecuario.

• ANDINAPACK – International Packaging Exhibition.

5.2 COMMERCIAL BUSINESS OPPORTUNITIES WITH BELGIUM

• Factory in Belgium: make new industrial products and their services.

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 • Mercados Agrícolas: Estos mercados son el fuerte de los países europeos, productos

como el aceite de oliva, las carnes, vino y whisky son los artículos que más

exportan e importan, este sigue siendo un pilar fundamental para la economía

europea. Por esto no ha sido posible una liberación completa de comercio en estos

productos.

• En el 2018 se buscó ampliar las posibilidades de inversión extranjera de Bélgica en

Colombia para el desarrollo de la red ferroviaria nacional, esto a partir de la

experiencia privada de Bélgica. Este acuerdo es clave ya que, en el Plan Maestro de

Transporte intermodal, en la primera década, vamos a desarrollar la red básica de

férreos con 3 grandes proyectos: La Dorada-Chiriguaná, el tren del Pacífico y el

corredor Bogotá-Belencito. Con el apoyo del Gobierno de Bélgica se buscará

compartir y aprender cómo sacar adelante el sector férreo y el multimodalismo en

Colombia, uno de los objetivos más importantes para el Ministerio de Transporte en

la búsqueda de lograr la conectividad y la eficiencia en el transporte.

https://www.mintransporte.gov.co/publicaciones/7073/colombia-y-belgica-firman-

acuerdo-para-desarrollo-de-la-red-ferroviaria-nacional/

5.3 COMMERCIAL BUSINESS OPPORTUNITIES WITH NETHERLANDS

• Energy and technology in the Netherlands: expand to new forms and sources of

energy among others.

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 6. CONCLUSION

We are a diverse country, we have a wide range of climates and soils that allow national

and international investors to have a common benefit for their commercial interests, despite

having these great benefits, we do not use them in the best way.

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We have business opportunities and free trade agreements between the European Union and

Colombia that over time has strengthened the relationship between countries and thus gain

greater credibility and trust. Our availability makes us very desirable to be able to invest in

our country and seek strategic allies that lead us to a socioeconomic improvement.

Opinions on the benefit to the country are divided, although it is true that Colombia is at a

clear disadvantage with respect to its main technology and infrastructure sectors, which is

being improved. It seeks to improve development for those entrepreneurs who want to

place their products in a diverse and huge market with great growth possibilities.

After 5 years of the entry into force of the free trade agreement between Colombia and the

European Union, the potential of a market of 520 million consumers, 28 member countries,

is ratified, which gives it an additional advantage due to the diversity of the market. market.

To which Colombia currently has access with a 0% tariff on most products, although the

tendency is for Colombia to sell raw material and import finished products. We can project

a considerable increase in exports in agribusiness. Expectations of export of inputs for

cosmetic products and tourism are also expected.

REFERENCES

Camara de Comercio Hispano Colombiano. (2019). Obtained from

https://camacoes.com.co/ferias-comerciales/

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http://www.tlc.gov.co/publicaciones/18028/acuerdo_comercial_entre_la_union_eur

opea_colombia_y_peru

Castiblanco, C. (26 de Julio de 2018). Analdex. Obtained from

https://www.analdex.org/2018/07/26/tlc-entre-colombia-y-la-union-europea/

CEOE Confederación Española de Organizaciones Empresariales. (07 de Junio de 2018).

Obtained from https://www.ceoe.es/es/contenido/actualidad/noticias/colombia-

relaciones-comerciales-bilaterales-y-oportunidades-para-las-empresas-espanolas

Colombia, D. d. (11 de Mayo de 2016). EEAS. Obtained from

https://eeas.europa.eu/delegations/colombia_es/1076/Colombia%20y%20la%20Uni

%C3%B3n%20Europea

datosmacro.com. (31 de diciembre de 2018). Obtained from

https://datosmacro.expansion.com/paises/espana

Datosmacro.com. (31 de Diciembre de 2018). Obtained from

https://datosmacro.expansion.com/paises/belgica

Datosmacros.com. (31 de Diciembre de 2018). Obtained from

https://datosmacro.expansion.com/paises/holanda

España, C. . (24 de Agosto de 2018). Efe. Obtained from

https://www.efe.com/efe/america/politica/colombia-y-espana-una-relacion-solida-

que-se-consolida-con-la-de-sanchez/20000035-3728954

Expansion. (junio de 2019). Datosmacro. Obtained from

https://datosmacro.expansion.com/pib/belgica

Gomez, M. V. (1 de Agosto de 2018). El Pais. Obtained from

https://elpais.com/economia/2018/07/31/actualidad/1533020596_145105.html

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Montero, J. M. (18 de Febrero de 2015). El Tiempo. Obtained from

http://blogs.eltiempo.com/egonomista/2015/02/18/belgica-y-colombia-tienen-

fuertes-vinculos-comerciales/

Mundial, G. B. (2019). Doing Business. Obtained from

https://espanol.doingbusiness.org/es/data/exploreeconomies/belgium

Pais, R. d. (25 de Noviembre de 2018). EL pais. Obtained from

https://www.elpais.com.co/economia/holanda-visita-colombia-para-fortalecer-sus-

relaciones-comerciales.html

Portafolio. (30 de Noviembre de 2018). Portafolio. Obtained from

https://www.portafolio.co/economia/el-pais-suscribio-seis-acuerdos-con-holanda-

523930

Procolombia. (1 de Agosto de 2019). Procolombia. Obtained from

http://www.procolombia.co/espana/oportunidades-de-negocio-en-espana

Reyes, B. E. (16 de Octubre de 2016). Protocolo de Negocios. Obtained from

http://comernicacion.blogspot.com/2016/10/reinode-belgica-beatrizelena-

martinez.html

wikipedia. (25 de 10 de 2018). Obtained from https://es.wikipedia.org/wiki/Espa%C3%B1a

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