Snhu Int-610

Colombia and Honda: A Joint Venture in the Making |

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Southern New Hampshire UniversityINT-610-X1270 Multinational Corporate Environment |

Background and Purpose

The Republic of Colombia is the fourth largest economy in Latin America, after Brazil, Mexico, and Argentina, and has the third largest population with approximately 46 million inhabitants with a GDP per capita of almost U.S. $ 7,854 in 2012 (U.S. Commercial Service, 2014; International Monetary Fund [IMF], 2013). It is the only country in South America with two coasts (Pacific and Caribbean), which provides tactical shipping advantages in today’s global economy (U.S. Commercial Service, 2014, p. 2). Over the past decade, Colombia’s economy has made significant progress due to political stabilization, security improvements and an expanding middle class. "By international standards, Colombia belongs to the group of countries with upper middle income"(Proexport Colombia,2012).According to recent key economic indicators in 2012 including, GDP growth of 4%, inflation at 4% and FDI of $15.8 billion (U.S. Commercial Service, 2014) a record for the country, Colombia is an attractive marketplace with potentially lucrative opportunities going forward.

Honda

Soichiro Honda established Honda Motor Co., Ltd., on September 24, 1948, in Itaya-cho, Hamamatsu, with capital of 1 million yen. Currently headed in Tokyo under President, CEO & Representative Director Takanobu Ito it is worth 86 billion yen (as of March 31, 2014) (Honda, 2014). Honda was the last major domestic automaker to enter the Japanese automotive market and today makes a wide variety of motorcycles, automobiles, power products, and innovative robotics and aircraft technology. Its mission: Maintaining a global viewpoint, we are dedicated to supplying products of the highest quality, yet at a reasonable price for worldwide customer satisfaction (Honda, 2014). With cumulative worldwide production of more than100 million units,...