UNIVERSITY CARTAGENA

SCHOOL OF ECONOMICS

REMOTE BUSINESS ADMINISTRATION PROGRAM

BUSINESS HISTORY QUESTIONNAIRE

READINGS OF VOLUMES 1 AND 2 OF THE TEXT OF:

DAVILA L. DE GUEVARA, CARLOS. 2003. COMPANIES AND

ENTREPRENEURS IN
THE HISTORY OF COLOMBIA. 19TH AND 20TH CENTURIES. A COLLECTION
OF
RECENT STUDIES, 2 VOLUMES. BOGOTÁ: UNITED NATIONS/ECLAC-
NORMA EDITORIAL GROUP-UNIVERSITY OF LOS ANDES.

BUSINESS HISTORY

JUAN MANUEL ORTÍZ

TUTOR

February 2019
CHAPTER 1: Business functions, institutional change and economic development
(EUGENIO TORRES VILLANUEVA)
1. Prepare a precise summary of the theoretical contributions that the author of the
chapter uses to present his thesis.
The author uses the following theoretical contributions to present his theses:
The neoclassical analysis of economic development , a theory in which the coordination of
resources is guided by the prices of goods and factor markets, establishes assumptions of
rationality and perfect information, paradigms that have ignored the role of the
entrepreneur as a factor of production and the influence of its activity on economic
development, this theory left behind what is related to the organization of production in
which the company and the entrepreneur are active subjects of the exchange and allocation
of resources.
Starting from the gaps in neoclassical theory, in the 2nd century. XX, gave rise to the
development of other economic theories, such as Industrial Economics , focused on the study
of companies in the industry of which they are part, to this we can add the contribution of
Coase and his main derivations, theory of transaction costs and behavioral analysis of the
company. Another theory that focuses on the study of the entrepreneur as an essential
production factor in economic activity, based on the studies of Schumpeter and Knight , who
highlight the role of the entrepreneur as an element of imbalance and his response to
situations of uncertainty; Later, Schumpeter and Cole also studied the behavior of the
entrepreneur but from a multidisciplinary perspective, showing the figure of the
entrepreneur as an essential element of economic development, trying to explain
underdevelopment and economic backwardness by relating it to the shortage of
entrepreneurs. In addition, there were the theoretical contributions of Kirzner, Leibenstein
and Casson, who sought to answer the economic problem related to the unequal evolution of
the productivity growth rate in different countries and the attempts to integrate it into
orthodox economic analysis.
In addition to the theories described above, the author includes in his analysis the
theoretical contributions of neoinstitutionalism, based on the study of institutions, which
include everything from the theory of transaction costs to the valuable relationship between
economics and law, going through North's theory from economic history, it also takes into
account some contributions from the theory of public choice, the theory of stability
processes and economic changes, and economic sociology on the behavior of economic and
social groups in those processes.
2. According to the different interpretations used by Torres in the text, construct your
own definition of "Innovative entrepreneur."
The innovative entrepreneur is characterized by: he does not contribute capital, he does
not assume the risks associated with uncertainty, he is not limited to managing the company
or exploiting already established businesses, his objective is to achieve achievements, such
as the development of a new product or a new method. of production, opening a new market,
creating a new organization, among others, this requires being endowed with certain special
qualities, such as the capacity for leadership in the face of economic change that entails
valuing the new over the routine.
3. Comment on the following statement from the text: "For example, in less developed
countries, the role of the entrepreneur may be to mobilize capital and specialized labor
into productivity-enhancing activities, a mobilization that might otherwise not take place
or be allocated in a different way. less productive way due to the existence of imperfect
and highly opaque markets".
This phrase refers to the function of the businessman to use resources efficiently, so that the
most benefit can be obtained from those resources at a low cost, and in this way maximize
the investment made and be able to cover demand. that you want to supply.
4. According to the different interpretations used by Torres in the text, construct your
own definition of "Institutions".
According to the interpretations used by the author in the text, “Institutions” come to be the
“laws”, the “norms” or the rules by which human behavior must be governed, that is, the
limitations imposed by society to shape human relationships. They are the rules that define
how the activity will be developed; these rules can remain unchanged for long periods of
time or undergo various changes.
5. Answer in an argued manner, what is the role of ideology within a political and
economic organization? Start based on the text.
Ideology is related to the set of informal rules of the game: values, customs, codes of
conduct, and norms of behavior coming from a culture but constantly modified by
experience; Ideology is the subjective character given to the rules to adapt one's behavior in
the face of certain facts or circumstances. It allows individuals to confront their environment
and have a vision that allows them to make decisions. It is linked to moral and ethical
judgments. on justice perceived by each individual, ideological change is related to the
experience of each individual.

CAPITULO 2: After Mr. Herbert's visit: United Fruit Company, local elites and the
labor movement in Colombia (1900-1970) MARCELO BUCHELI GÓMEZ

Starting from the assumptions used as hypotheses by the author about the neo-Marxist
school (a, b, c) that sees in the multinational operations of the extractive sector the best
example of the dynamics of economic imperialism, Describe if you really manage to verify
that the hypotheses "b" and "C" do not apply. If you think otherwise, that is, they apply,
say how and why.
From the reading it can be established that in fact hypothesis "b" does not apply in the case
of the United Fruit Company, considering that according to what is stated in the document
based on the interviews carried out with former employees, these They always had a way to
negotiate with the company to the point of obtaining the requested claims. In fact, the abuse
was more on the part of the workers than on the company. This is the case of abuse by the
workers in the use of the services. of free health care granted by the company to them and
their families, being so absurdly shameless in demanding to extend this benefit to cousins,
grandparents, nephews, even lovers.
Hypothesis “c” does not apply either, because although the multinational had great
advantages in the contracts contracted with local producers, this did not bias their attempts
to negotiate seeking to reduce their disadvantages in the face of the position of the United
Fruit Company, which Although it had participation in part of the production, its role was
more leading in the marketing of the fruit in the international market.

CAPITULO 3:
Businessmen and ranchers on the Atlantic Coast (1850-1950)
EDUARDO POSADA CARBÓ

1. Develop an argument that justifies the idea of the negative impact of livestock
farming on the economic and social development of the region and the country.
Livestock farming has been seen as having a negative impact on the economic and social
development of the region and the country, assuming that it is an activity that does not
require the employment of many people and that also does not require much business effort,
which It also prevented the growth of agriculture by dedicating the land only to livestock
instead of the cultivation of agricultural products, an activity that could employ a greater
number of people, not to mention the high sources of income for the Nation due to the great
variety of agricultural products that could have been put on the market.
2. What was the role that ranchers and livestock traders played in the Livestock
Farming of the Colombian Caribbean?
The landowners were the owners of the herds, they were dedicated to breeding (production),
while the merchants were dedicated to buying small quantities of livestock to sell to large
operators or take to the market; It is not easy to establish who obtained the greatest profits,
the truth is that while little is known about the use that merchants gave to the profits
obtained in their operations and their business behavior, it is known that landowners used
them to expand their herds and adapt the lands for production, such as the Burgos
Bérastegui who introduced new varieties of grass or the attempts to improve the zebu breeds
by the Held, these efforts can be taken to demonstrate the existence of a dynamic business
group.
3. Establish differences and similarities between the Argentine and Colombian
experiences regarding the economic impact of livestock farming. Explain why the
experience of Argentines is considered positive.
Differences:
- In Colombia the most important market was the internal one.
- In Argentina transportation was by rail while in Colombia it was transported on foot.
- The production process in Colombia took longer than in Argentina
- In Argentina, the Saladeros and Frigoríficos achieved a large industrial organization
while in Colombia they did not.
Similarities:
- In both countries the division of labor took place in the different phases of beef production,
although in Colombia there were greater complexities
Argentina's experience is considered positive due to the nature of the industry it received
and the growth it had during the colony motivated by the demand for bovine leather and
later by the demand for meat, both stimulated by the foreign market.
4. What does Eduardo Posada mean when he explains that in part the figure of the
rancher who behaved, in economic terms, in an irrational way, that is, without taking into
account market conditions? Which economic terms and which market?
When the author explains that in part the rancher behaves irrationally, he refers to the fact
that they largely had the activity as a means to achieve a social status rather than out of a
desire for profit, and they also had little vision of businessmen as they were not objective
with the study of the market and the investments that had to be made to accelerate the
production processes, for example they did not see the disadvantages of the geographical
location of the Sinú Region in which there were floods almost half of the year that imposed
serious limitations, not only floods were problems, in other areas like Sincelejo, the problem
was drought; but the greatest difficulty that livestock farming had was transportation, as it
did not have a means of rail transportation, this was carried out autonomously (on foot,
forays), which in addition to the delays in getting the product to its destination, It entailed
losses, since due to the weight loss that the cattle had due to the long journeys, the ranchers
were forced to new stages in the marketing of the product, losing profitability and
competitiveness in the livestock industry.
In addition to what was stated above, ranchers were also accused of having irrational
behavior for using the land for grazing instead of using it as a resource for the development
of agricultural products.
5. How did livestock farming implicitly and explicitly affect the development of
agriculture according to Borda's approaches?
According to Borda's approaches, livestock farming affected the development of agriculture
due to the conception that large volumes of labor were not required for the development of
the activity, although greater dedication to work was required, this assumption and the low
demographic density in the area at that time, which translated into a shortage of labor,
implied difficulties in promoting agricultural projects, in addition to the fact that at the time
the growth of the country demanded more labor in activities such as oil well exploration,
that since there was little labor (which was expensive as there were few people to do the
work); In that sense, any effort to promote agricultural projects ended in frustrations that
left the conclusion that “it didn't pay to plow, but it paid to graze.”
CHAPTER 4: J. V. Mogollón &Cia. (1900-1930): “Scratching paper” 705 RODOLFO
SEGOVIA SALAS AND CLAUDIA NAVARRO DÍAZ
1. Taking into account the journey that Segovia takes at the beginning of the Text,
describe the political ups and downs that the context of the reading presents. Define
three at least.
- The Siege of Morillo: Cartagena is besieged by Pablo Morillo at the end of August 1815.
The process of taking the city was slow, lasting 107 days, as it was necessary to penetrate
the security rings of the port which, as history had shown, could reduce armies by half
without requiring a great effort on the part of the defenders. Finally, on December 6 of the
same year, Morillo managed to enter Cartagena along with his royalist troops, defeating the
fierce independentists. The episode is key in national history as it marked the beginning of
the Spanish reconquest.
- The Regeneration was known as a period where Colombia was formed as a nation, a new
constitution was born and organizations, institutions and companies were created. But they
were also times marked by bloody civil wars.
The political project of regeneration raised the guidelines of national unity and
incorporated them in the new political constitution (1886), in aspects such as the aspiration
for an ironclad presidential regime, a centralist political-administrative organization, the
strengthening of the National Bank, the creation of a professional national army and the
strengthening of ties between the state and the Catholic Church, especially in relation to
education, the moralization of society and the censorship of writings.
- The War of a Thousand Days: It was a civil conflict fought between October 17, 1899 and
November 21, 1902, initially between the Liberal Party and the National Party government
headed by President Manuel Antonio Sanclemente, who was overthrown on July 31, 1900 by
José Manuel Marroquín Ricaurte, representative of the Conservative Party, in alliance with
the liberal Aquileo Parra; From then on, and despite said alliance, the war would continue
between historical liberals and conservatives. This war was characterized by an irregular
confrontation between the well-organized government army and a poorly trained and
anarchic liberal guerrilla army.
The conflict resulted in the victory of the Conservative Party, the economic devastation of
the nation, more than one hundred thousand deaths, the disappearance of the National
Party and the state in which the country was left after the conflict became the peak for some
of the necessary conditions for the subsequent separation of Panama in November 1903. The
abrupt change caused by the repeal of the Constitution of Rionegro of 1863 (which
reinforced the federal model) by the centralist Constitution of 1886 (established under the
mandate of Rafael Núñez), in addition to the violent attempts to co-opt the historical
conservatives through of Marroquín, as well as the liberal interests of regaining power,
were the main causes of the war.
2. Because the author considers that these adverse circumstances did not affect
Cartagena as was thought .
Because in times of economic and political crisis it is expected that business development
will be rather non-existent, and that existing companies generally close due to bankruptcy,
however, according to what is stated in the text, “the analysis of incorporation movements
and dissolution of companies (…) reveals a panorama of relative creativity, both in terms of
the number of companies and the amount of operations, which are increasing”
3. How important is the development of ports for the business growth of Cartagena.
Explain the case of the Mogollón workshops.
The port development in Cartagena was very important for the business growth in
Cartagena and especially that of the Mogollón Workshops, because Cartagena being a Port
made it easier for the raw materials and machines that Don Pepe brought to be imported
(generally from Germany, Finland, Canada) for the processing, transformation and
distribution of typographic products will arrive directly, saving time that would be involved
in transporting them.
4. What the author refers to when he states that the secret of success lies in the
foundations of political economy of JV Mogollón.
With the statement “the secret of success lies in the fundamentals of political economy of JV
Mogollón”, the author refers to the way in which Don Pepe Mogollón ensured the cash flow
of his business: he imported his raw materials and canceled his suppliers. for long loans,
yes, always very punctual; But all sales were made in cash, he did not grant credit to his
clients, this way he had a way to finance the growth of his company and ensured he was
solvent.
5. What are the examples within the text that define an attachment to innovation By Don
Pepe Segovia. What relationship does this have with the expansion of the company to
other places in the national geography.
- The main example that defines Don Pepe's attachment to innovation lies in the
modernization of JV Lots of money with the acquisition of machines that were imported on
credit, such as:

- The acquisition of the first linotype to arrive in Colombia (1910)

- Minerva type printing presses

- the installation in 1912 of the only photoengraving workshop, which for many years
processed photographs for newspaper publications on the Caribbean coast.

- Manufacturing and selling your own inks.

- the use of very fast machines in scratching work.

All these factors influenced the expansion of the company by being able to supply its clients,
mostly newspapers, magazines; all the supplies they needed for their operation, and even the
possibility of printing publications that contained photographs in their photoengraving
workshop.