As the case points out, it appears that the relationship between Intel and Costa Rica seems to be progressing well. What are some of the advantages of such goodwill between Intel and Costa Rica?
GDP – The monetary value of all the finished goods and services produced within a country’s borders in a specific time period. It includes all of private and public consumption, government outlays, investments and exports less imports that occur within a defined territory.
* The 300 million investment was equivalent to 2.1 per cent of the country’s GDP
Advantages of Costa Rica
* Corporate tax exemptions available to firms that satisfied certain conditions under the free zone scheme * Excellent education level of the workforce
* A stable political scenario
* Economic openness
* Relatively corruption-free environment
Educated Workforce – Having a well educated workforce means Intel are likely to experience a greater return on their investment and higher profitability as compared to companies that opt for less educated staff.
Corruption-free environment – Costa Rica is a small country and has a corruption free environment which means Intel will not face as many problems in terms of their goals and strategies compared to if they were in another country.
Corporate tax exemptions – Exemptions off corporate tax means higher profits for Intel.
Stable political scenario – This means the country’s government has control over its country. Meaning it is predictable and reliable. Intel can count on the government to be the same as it is today in the years to come.
Economic Openness – The degree of openness of an economy determines a government’s freedom to pursue economic policies of its choice and the susceptibility of the country to international economic cycles.
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