American Mining in Colombia Essay Sample

AMC is one of the taking coal excavation companies in USA that had finished traveling about all of its coal operation from the southern united province to premier mine in Northeast Colombia. Before move to Colombia. AMC was one of the the top 300 largest private companies in USA that supplying high quality coal. dependable bringing and first-class service. By traveling to Colombia. Mine Company provided three of legion advantages for AMC such as type of payment for worker where lower rewards provided for worker in Colombia instead than US mine workers. Colombia the world’s largest coal modesty and the authorities offered for protection of the company operation and its employees. However. established the company in Colombia so many obstructions that American excavation Company faced such as concern and political environment jobs such as security. assail the company. worker and alien investor for growing the development chances. MAIN ISSUES

This article explained about business’s status and country‘s job which is happened in Colombia and impact to AMC ( American Mining Company ) growing prospect. Swot

Strength could include a company specializer and location. There are many facet of concern to be growing the chance in excavation that AMC have in Colombia comparison in US. The strength includes: * The type of payment of labour of AMC. In Colombia the company will acquire more benefit such as payment of rewards for Colombian mine worker much cheaper that US mine worker. * No limitation labour mine from Colombian brotherhood or authorities such limited working hr and safety compulsory status. This status caused increasing of unemployment in Colombia. * Colombia the universe largest of coal militias. This can increase the quality of coal in the universe. * Government besides offered legion attractive investings to AMC such as tax-exempt operational and subsidised Infrastructure development. * Colombia ground forces would be protected of company’s operation and its employees * Cheap land

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* Increase the quality of production because of the modern engineering and efficient operational logistics could supply a apt beginning Weakness
The AMC’s Weakness includes:
* Few limitation applied to foreign company wishing to get down concern operation in Colombia. Both foreign and national investing have to follow the same legal and administrative policies. 100 % foreign ownership was permitted for most sectors of the Colombian economic system but non for national security. risky waste merchandise and some existent estate growing. * Harmonizing Colombian jurisprudence. the worker required to be Colombian subjects. this will exceeded per centum lower limit * AMC got involvement in geting carbonol 50 % equity in the undertaking * The concerns besides operate during the twenty-four hours because dark is excessively being unsafe. This caused of the fractions group’s attack consequence. * Poor entree of distribution of foreign because state job * The company non protected the worker

The company is cognizant of perchance external menaces. Menaces for AMC are: * Colombian Political environment is one of the menace of company because Colombia endured a acrimonious civil war * Colombia is the highest rates of violent. riotous Acts of the Apostless on company and snatch in the universe. this status caused detering the foreign investor to come to Colombia * One group of fractions in Colombia besides dominated for drug trafficking and snatch concern to be better armed equipped motivated than authorities ground forces. this state of affairs besides can act upon the foreign investor because the mark is foreigner and high profile executives * The paramilitaries are another menace for AMC because their mark is company’s brotherhood worker. This will impact the all production. * High for transit cost because the security concern

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* US sent a $ 1. 3 billion assistance bundle to face the security issued create by Rebels and drug job and US besides increased military cargo including chopper and preparation. This can better the security for future and protect US assets * Decreased the of unemployment by making more occupations

* By addition the security it is a great clip to positioned for market in Colombia * Colombia’s mineral and energy resources are abundant. particularly in coal. Furthermore. higher monetary values. increased international demand. improved end product. and pro-business reforms. have led companies from Canada to China to set up operations in Colombia.