Costa Rica - Risk Analysis

Essay by jvaccaroUniversity, Bachelor'sA-, December 2007

download word file, 14 pages 5.0

Country Risk Analysis: Costa RicaIntroductionInternational business opportunities are plentiful in the growing global economy, however research is paramount before getting started, as there are risks that may be too great to mitigate. This risk analysis will identify the potential opportunities and risks associated with doing business with Costa Rica.

Export Opportunities from the United States to Costa RicaAccording to the United States Commercial Service (U.S.C.S.), a division of the United States Department of Commerce, five industries are identified as distinct opportunities for U.S. export to Costa Rica. The import opportunities are household consumer electronics, orthopedic appliances, vitamins and minerals, telecommunications equipment, and food processing and packaging equipment, which are detailed in market research reports compiled during 2004 and 2005.

Household Consumer ElectronicsAccording to Cambronero (2005), Costa Rica is known world wide for its' disciplined, educated, and computer literate workforce, resulting in large U.S. computer technology companies opening manufacturing and call centers in Costa Rica.

Cambronero states, "The high quality of the workforce and the demanding Costa Rican consumer drive the ever-increasing demand for household consumer electronic products in Costa Rica" (p. 1).

Orthopedic AppliancesLaura Calzada's analysis (2005) indicates that orthopedic appliances have experienced a significant increase over the last three years. Ms. Calzada reports that although Costa Rica is a small country, approximately 4.2 million, it is a sophisticated market with an extensive health care system. Costa Rica has a socialized form of health care, thus resulting in the government purchases of orthopedic appliances equally 85% of the total market share. Unfortunately, Caldera indicates that not unlike other governments, the lowest bidder is the successful bidder and Costa Ricans have been on the losing end of the proposition due to lower quality appliances. The United States manufacturers of these specialized appliances, i.e., artificial joints and limbs, hearing aids, crutches, and...