Costa Ric A Stable Central American Country

1557 WordsDec 11, 20157 Pages
Costa Rica, like every other country, has some challenges and opportunities when doing business. Although Costa Rica is known to be a relatively stable Central American country, it does of course, also have a number of pressing, but unresolved issues. It has been subject to economic and political challenges present in Latin America in general, experienced pressure from political instability in Nicaragua and Panama, and has often experienced high internal and external debt, as well as significant inflation. ”In 2014 inflation as measured with interannual variation of the Consumer Price Index was 5.1%,placing it slightly above the target range (4±1 percentage points)” These, as well as, other economic instabilities and political environmental changes in Costa Rica could increase a company’s operational costs, exposure to business and legal risks and make it more difficult for companies to operate their business in Costa Rica. Also, erratic infrastructure and large amounts of red tape can make it hard for upcoming businesses to get established in the nation. Some of the significant risks/challenges a company’s operation could face in Cost Rica, include the following: • They may have currency fluctuations relative to the U.S. dollar, which could significantly increase expenses • May be unable to find, hire and keep sufficient number of qualified employees at an attractive rate • Facilities may be at risk of damage by earthquakes, typhoons and other natural disasters • Be

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