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BUS302 Business Language And Culture
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BUS302 Business Language And Culture
0 Download2 Pages / 301 Words
Course Code: BUS302
University: Charles Sturt University
MyAssignmentHelp.com is not sponsored or endorsed by this college or university
Country: Australia
Question:
Why does democracy reduce political risk for foreign investors in Costa Rica?
What specific lessons can multinational organizations learn from Intel’s experience in Costa Rica which can be applied in assessing locations globally?
Answer:
Introduction:
Costa Rica attracted towards the foreign investment; foreign investment can easily transform the economy. A strong democracy is established by Costa Rica to reduce the risk with the transparent institution, competitive elections, and a solid social welfare state. Costa Rica wants to grow in the market and it focuses mainly on foreign investment but it has much risk to attain the objective that is why the democratic political institutions help the company in attracting the foreign investment. The reason to reduce the political risk is to attract the foreign investors towards the Costa Rica. It is observed that democracy finds the weakness and reduces the political risk (U.S. Department of state, 2015).
Intel’s experience taught the investment lesson to multinational companies to look for new locations. It taught the companies to invest carefully by taking care of taxes. Intel tax-free status provides services to the companies such as tax-free, discounts and favourable prices. Democratic institutions and interest group of Costa Rica provide the feedback and aid to develop the relationship with the community. Cost Rica approach related to the biodiversity and localised management of protected areas give the feedback to the companies to tell the right decision and right place for the company (The Guardian, 2010). Cost Rica investors ranked in political stability and well-educated labour forces are the strength of its business environment. Invest in abroad is often a defensive decision for the companies. Multinational companies can take the comparative advantage with the help of Costa Rica or the lesson learnt from Intel’s experience.
References
U.S. Department of state. (2015). 2015 Investment Climate Statement – Costa Rica. Retrieved from: https://www.state.gov/e/eb/rls/othr/ics/2015/241525.htm
The Guardian. (2010). Costa Rica recognised for biodiversity protection. Retrieved from: https://www.theguardian.com/environment/2010/oct/25/costa-rica-biodiversity
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