Human Rights has also been a problem in the past with little improvement, problems still remain. Currently there have been reports ranging from unlawful killings, to under age workers (U.S Department of State, 2007). Many public and political figures are not being held accountable for any malicious actions that would other wise are considered breaking the law.
With an economy growing at an average rate of 7.7 percent, the Dominican Republic entered the Central American Free Trade Association that eliminated over 80 percent of tariffs instantly. Aside from the negotiations to enter the CAFTA the United States also requested better protection to foreign investors by the Dominican government.
Exchange and Repatriation of Funds RisksIn the past, investors doing business in the Dominican Republic had to register with the Central Bank in order to invest in and out of the Dominican Republic. This also made it harder to withdraw funds from the Dominican Republic. With the Central Bank controlling the foreign exchange, it made current and potential investors think twice about doing business in such a country. Today, the Dominican Republics foreign investment law has eliminated the requirement of having to register any investments conducted in the country.
Competitive Risk AssessmentThe Dominican Republic's production of all organic certified bananas globally, helps build on the economy. The Dominican Republic, which is apart of the Windward Island, is having a hard time trying to complete in a free market due to the production and exporting cost.
Taxation and Double Taxation RisksDue to the liberalization of the Dominican Republic, trade barriers have been reduced through out the years. Despite the Dominican Republic's liberalization, custom duties and tariffs represent a portion of the Dominican Republics tax collections. Currently the Dominican Republic is not really facing any taxation risks due to the signing of the free trade agreement with United States, which will help eliminate 70% of imports from duty rates.
Market Risks (4 Ps)The Dominican Republic faces few issues when it comes to market risks. The market prices are affected by the amount of bananas that are out for sale. If there were ever a country that could grow at a faster rate or grow more at one time they could corner the market in the growing of bananas.
Another market risk is if the demand for bananas were to ever change the country could loose out not only on the price but also on the over growth of bananas that would have to be wasted if they could not be sold.
Distribution/Supply Chain RisksIn the Dominican Republic, only 50% of the roads are paved and the remaining roads may prove to be difficult to maneuver with large trucks. The road system is very narrow and some areas may be impossible to use. The Dominican Republic has several ports for exports and they include: Boca Chico, Puerto Plata, Rio Haina, and Santo Domingo. Since only half of the country's airports have paved runways, the best option for exporting bananas may be via the sea ports.
Social/Cultural RisksThe labor force in the Dominican...