In the previous modules you looked at the cultural and financial situation of your reference country (Columbia). Now we'll be looking at the legal and political environment of your country and how these factors impact doing business.
As part of your research, keep in mind that several organizations publish various rankings and indices of political and legal factors in the major countries in the world. One example of rankings is the World Bank's Worldwide Governance Indicators page (http://info.worldbank.org/governance/wgi/index.aspx#home). This webpage includes rankings on factors relating the legal and political system such as rule of law, regulatory quality, and political stability. Rankings are given from 0 to 100 on each of these aspects.
The World Bank also does some rankings of the ease of doing business in countries across the world. Their doingbusiness.org has detailed reports on most countries on different aspects of doing business. While they look at many different factors, some of these relate to the legal system such as ease of enforcing contracts or getting a business license. It is worth looking up your country on this webpage to get an idea of how friendly your country's legal system is to doing business. In addition to the Doing Business report, Transparency International does an annual report on corruption around the world and their rankings can be found at transparency.org.
But don't just look at quantitative rankings of your country, do additional research to get an overall picture of the legal and political system beyond just a numerical score. Once you are finished doing your research on this country of your choice, write a two to three page paper covering the following issues:
1. The type of government and level of political stability in your country, and whether or not the political system is conducive to doing business
2. The legal/regulatory system in this country and whether or not it is conducive to doing business
3. The level of corruption in your country, and the impact of corruption on doing business in this country
Columbia is a republic, located in the northwestern part of South America. Its official language is Spanish., and the national currency is the Colombian peso. The government is separated into the executive, judicial and legislative branches. The executive branch is led by the President of the Republic of Columbia, the judicial branch has a supreme court, and the legislative branch has a congress.
Columbia's economy is the fourth largest in Latin America. The country is politically stable. The political system is conducive to doing business. The middle class comprises 35% of the population, and is growing. The country has enjoyed a GDP growth of 4.7% per year for the past 10 years, although the GDP is projected to be approximately 3.5% for 2015, and investments are expected to slow down.
The legal/regulatory system in Columbia is conducive to doing business. Columbia has received the following scores from doingbusiness.org:
Ease of doing Business Rank 34
Starting a Business 84
Dealing with Construction Permits 61
Getting Electricity 92
Registering Property 42
Getting Credit 2 ...
The expert examines governments and legal systems, and corruption in Columbia.