Colombian Industrial Sector - Essay Example

The mystery remains why the export share is low in the United States. It is explained two central theories: high or low export intensity has not shifted with export growth over the years and even the distribution of exports has remained the same. Secondly, considering the reality that there are wealthier economies in the world demanding higher qualities as well as those markets that demand higher output and willing to forego quality. Based on these two approaches we have two ways of explaining it the two ways: the productivity approach and the quality approach.

By using the two approaches we notice that the production of good remains doesn't really show that a nation with a high export would achieve high export share because of the product diversity and diversity in the destination plans. Secondly, the other idea is that there Columbia is a low-intensity country and it, therefore, produces large amount but with a lower quality this is the very reason that it is incapable of exporting to a wealthy nation as it requires Columbia to export good quality which Columbia is incapable as it tries to target high-income nations.

By looking at various researches, we conclude that if A nation has differentiated products to export like Columbia then it will have a low export share and similarly if the quality is low it will have a low export share too. Therefore in Columbia's case, it should try to have a homogenous product base and have a greater emphasis on product quality in order to increase its share in the world economy.