ENSAYO NEGOCIOS INTER

Servicio Nacional de Aprendizaje Sena

Actividad de Aprendizaje Nº 11

Evidencia 3: Ensayo “Free Trade Agreement (FTA): advantages and disadvantages”

Aprendiz: Ingrid Karina Ardila Ortega

Tecnología en Negocios Internacionales

Ficha: 1413107

Ensayo “Free Trade Agreement (FTA): advantages and disadvantages”

Agreement between Colombia and the United States, approved on October 10, 2011 and launched since May 15, 2012 with objectives to maintain the economy between the two countries in terms of imports and exports.

According to critics of this issue, they affirm that the FTA is a straitjacket because the United States takes this agreement as a payment to the debt that is owed, which is more an obligation than an economic exit, because by accepting this treaty, they did not think if the people or the people win or lose they only linked themselves to their own good but they did not see that we Colombians are the most affected, for the mere fact of being an underdeveloped country where our competitiveness of the majority of products does not increase nor are competent in the potential of the United States.

The Colombian economy has been so affected, that the producers of our country have had to sell at lower cost, to be able to sell their product to their places of origin since the number of imports increases every day, Colombia is preferring to bring coffee and prepared for daily consumption instead of improving the quality of ours and exporting it, all these factors are the biggest losers because now they have to earn less, work more and compete more in terms of quality and prices.

The poor peasant who only produces a minority for the livelihood of his people has to sell his most economical products in order to make his clients acquire them, and the big wholesalers prefer to import products at lower prices in North America, and enter into competition with the producers from your same country.

the harmed ones are the farmers and the beneficiaries are the big businessmen who compete with their prices, importing products and affecting the economy of our country.

According to expert economists from Colombia, such as Mauricio Rodriguez, Juan Camilo Restrepo, Hernando Gomez Buendia and others, the FTA is something that Colombia has to do, because otherwise other countries will also arrive that also produce and export the same as we do, and They will "steal" the market, condemning us to underdevelopment. Sooner or later Colombia will come to establish economic pacts in this country or with other countries of the world; the fundamental thing is that you can not miss an opportunity of these, since the first of the countries that arrive in the United States, through an FTA, will be the colonizer that will control the market and will know it better than the others. Additionally, ours is a medium economy that needs to open its doors to other countries, to achieve development, and if it does not do so with its internal economy, it will not be able to survive.

The United States is a country of 285 million inhabitants, with 35,000 thousand dollars of income per capital, which represents a great purchasing power. It is also a very rich market and one of the largest and most dynamic in the world, in which Colombia will be able to sell, negotiate and export innumerable products, which will generate a better level of economic and social development for our country.

It is also a very rich market and one of the largest and most dynamic in the world, in which Colombia will be able to sell, negotiate and export innumerable products, which will generate a better level of economic and social development for our country.

Colombia is not a great threat to the United States in political and economic matters, since the total production of our country is only a quarter of their production. We are irrelevant in the impact that we can cause to its productive apparatus, for which, the economists consider that the United States will be generous with us in this agreement that is trying to sign. What has to be taken into account, is that Colombia is in total disadvantage with respect to the United States, since it has greater capacity for competition and production in the sectors where our country is more dynamic. But this way, Colombia also has sectors in which it can compete with its main ally and rival, such as: fruits, vegetables, footwear, textiles, etc. Although Colombia may have advantages and certain competition options, as mentioned above, it has a great disadvantage represented in the great gap between a developed country, or rather, a world power, and an underdeveloped developing country, such as ours.

The main cause for Colombia to have a competitive capacity with other developed or developing countries, is that it does not have a state that makes a total presence in its territory, added to this the great problem represented by the presence of insurgent groups, the disinterest in our nation or the lack of nationalism, and many other factors that prevent Colombia from being an integrated Nation-State, factors that the United States does not have.

the disinterest in our nation or the lack of nationalism, and many other factors that prevent Colombia from being an integrated Nation-State, factors that the United States does not have.
Another factor of disadvantage for Colombia, is the little infrastructure that has to control and make a treaty of these characteristics, such as roads to transport products, ports, machinery, bridges, railways, warehouses, plant capacity of companies and so many others that are needed to compete with the United States.

Additionally, in order to enter this trade under equal conditions, the country must make a radical social change in terms of production, competitiveness, protectionism, education, quality processes and the improvement of the judicial and commercial system, since With this agreement the demands will be greater, requiring a more effective and effective response in these fields With this agreement the demands will be greater, requiring a more effective and effective response in these fields.

Today, the biggest concern with the openness that the country will have for the signing of the Free Trade Agreement, are the different negative repercussions, especially on two sectors of our economy: the field or agricultural system and SMEs (small and medium enterprises) .

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