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Costa Rica

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Date Globalization and global marketplace in Costa Rica
Costa Rica has been long associated with dependence on traditional exports. However, in the 1980s the country launched economic stimulus programs aimed at reducing its debt crisis and import substitution. The new programs aimed to increase foreign direct investment (FDI) and pursue free trade agreements. The actions paid off as Costa Rica is currently the best performing Latin American nation in terms of attracting FDI with most of the funds going to the manufacturing and high tech sectors. Actually, over the last decade there investors have been streaming to Costa Rica to invest.
In addition, high tech companies dealing in electronics and medical instruments make …show more content…
At the macroeconomic level, FDI enables countries to have a good foreign exchange constraint thus allowing flexibility in the current account deficit. In addition, FDI leads to stable process and foreign exchange markets leading to increased employment opportunities and investments. On the other hand, FDI contributes to the micro level by advancing domestic knowledge based assets through spillovers. High number of human capital make Costa Rica favourable destination for foreign investors. In addition, tourists throng the Latin American country due to its natural capital which includes scenic beaches, tropical forests, and biodiversity. However, the government has to constantly wade off illegal hunters from the wildlife reserves and refuges to preserve the biodiversity for future generations. These efforts are limited by insufficient funds leading to the government’s inability to enforce the existing regulations. In addition, the increase in the number of tourists visiting Costa Rica has put a strain in the infrastructure such as airports, roads, highway system, and …show more content…
For instance, between 1995 and 2005 passenger numbers at the main airport doubled from 1.8 million to 3.2 million. The increase was despite the collapse of the airport in the mid-nineties. In addition, there has been pressure on the road system due to increase in the vehicles which increased from nearly half a million in the 1990’s to about 1.5 million in 2005. The limited investment in roads and infrastructure is due to a lean government budgetary allocation. Furthermore, there is pressure on the environment as new tourist hotels crop up in the coastal and mountain

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