Doing Business in Bolivia
EENI - Business School.
Subject (Course): International Trade and Business in Bolivia. Bolivian
Economy. La Paz. Syllabus:
- Introduction to the Plurinational State of Bolivia.
- Bolivian Economy.
- Doing Business in La Paz
- International Trade of Bolivia.
- Foreign Direct Investment (FDI) in Bolivia
- Case Study: Business Opportunities in Bolivia:
- Case Study:
- Bolivian integration corridors.
- Economic Integration in Bolivia.
- ENTEL Telecommunications
- Introduction to Spanish
- Access to the Bolivian Market
- Business Plan for Bolivia
Aims of the subject “Doing Business in Bolivia”:
- To analyse the Bolivian economy and foreign trade
- To evaluate business opportunities in Bolivia
- To explore Bolivia's trade relations with the student's country
- To know Bolivia's Free Trade Agreements (FTAs)
- To examine the profile of Bolivian Companies
- To develop a business plan for the Bolivian Market
Sample of the subject - Doing Business in Bolivia:
Subject Description (Doing Business in Bolivia):
The Plurinational State of Bolivia (America).
- Bolivia has nine departments (Beni, Cochabamba, Chuquisaca, La
Paz, Oruro, Pando, Potosi, Tarija, and Santa Cruz) and 112 provinces
- Borders of Bolivia: Brazil, Argentina, Peru, Paraguay, and Chile.
- Bolivian population is 10 millions of people
- Area: 1,098,581 square kilometres
- The official languages of Bolivia are Spanish, Quechua, Aymara, Guarani, and thirty-three local languages.
- According to the Bolivian Government: “Bolivia is a Social Unitary State of Plurinational Communitarian Law decentralised and autonomous.”
- Abolition of slavery in Bolivia:
- African Diaspora in Bolivia: 0.5% of the Bolivian population
- Independence of Bolivia: 1825 (from Spain), recognised in 1847.
Religion in Bolivia: Christianity (9.5 million). Catholicism (7 million) and Protestants.
Bolivia belongs to the Latin American Economic Area of the Western Christian Civilisation.
- According to the Central Bank of Bolivia's, the balance of payments showed a surplus of 325 million dollars.
- Bolivian GDP: 34,175 million dollars
- In 2009, the Bolivian Government signed a debt cancellation with the Government of Spain
- The Plurinational State of Bolivia has significant natural
resources: mining and gas
- Through the Bioceanic Corridors, the Plurinational State of Bolivia has positioned itself as a regional distribution hub between
the largest markets of the Pacific and the South Atlantic
region of South America.
- Nationalisations have taken place since 2006 in the hydrocarbons, mining, and telecommunications sectors; business opportunities in these areas for foreign direct investment have become more limited.
- Flows of foreign direct investment (FDI) received in Bolivia were 687 million dollars, mainly
in the hydrocarbons sector.
- Currency: Bolivian (BOB)
- Entel holds a
Leadership position in both fixed and mobile telephony, as in the various telecommunications services of added value.
International Trade of Bolivia:
- The total Bolivian exports of products reached 4.848 million dollars FOB (28% of Bolivian gross domestic product).
- Export flows were characterised by low levels (average of USD 1.919 million).
- The total petrol exports were lower in 41% compared to 2008.
- Regarding non-traditional exports, their value was higher by 1.4%
- Non-traditional export products that showed increases in value were: soybean
meal (52%), sugar (41%), soybean oil (31%), soya beans (23%), flour soy (20%), and coffee (5%).
- The total Bolivian imports of products CIF (USD 4,377 million) was lower than in 2008 (12.1%) but higher than those achieved in previous years.
- Imports of capital products stand for 28% of the total
- The balance of payments of Bolivia recorded an extra of 325 million dollars (Central Bank of Bolivia).
Foreign Trade flows of Bolivia with the rest of the World (data in dollars).
- Trade with the MERCOSUR
fell to 708 million, mainly owing to lower natural gas exports to Brazil.
- With the Andean Community, there was an increase of the positive balance of 158 million due primarily to higher exports to
the Republic of Colombia and Ecuador.
- With the Central American Common Market - Central American Integration System (SICA), ran
an international trade deficit of 0.2 million to an extra of 2.7 million.
- With the North American Free Trade Agreement (NAFTA), the deficit augmented to 131 million due both to the decline in exports as the major imports.
- With the European Union (EU), there was an increase in the extra of 90 million (3.2 billion in 2008) by augmented exports, highlighting the positive foreign trade balance with Belgium, the Netherlands, and the United Kingdom.
- With the European Free Trade Association (EFTA) augmented extra owing
to augmented United States 6 million dollars extra with Switzerland.
- In Asia, the positive balance of 130 million mainly explained by the favourable balance with South Korea.
Bolivia's Organisations and Free Trade Agreements (FTA)
- Andean Community
- Bolivia (CAN)-MERCOSUR Agreement
- Accession process to the MERCOSUR
- European Union-Bolivia
- Bolivarian Alternative for the Americas (ALBA)
- Latin American Integration Association (ALADI)
- Latin American and Caribbean Economic System (SELA)
- Union of South American Nations (UNASUR)