Global Business Plan Essay Example | Topics and Well Written Essays - 1250 words

Global Business Plan - Essay Example Checking inflation, lowering the deficit, and bettering the efficiency of public sector continue to be vital challenges confronting the government. (The Economy of Costa Rica) Costa Rica continues to be one of the safest and most attractive countries for foreign investment in Latin America. The Costa Rican government, its ministries and F.I.s keep up a distinctly pro-US and continental position with regard to financial security and tax laws. The avowed objective is to attract mainly the companies that are on the technological forefront to leverage Central America's most educated, computer literate and highly disciplined workforce together with the modern production infrastructure the nation is presently building. Currently, the economy is being changing over from its long-term dependence on coffee, bananas and cattle rearing to electronics like microprocessor production and high-tech telecommunication services. The pro-investment friendly climate and government policy of transforming the country into the Silicon Valley of Latin America has lured major companies like Acer, Microsoft, GE, Intel Corporation to make considerable investments in the country bot h financially as well as physically, with major production and distribution facilities. (Doing Business in Costa Rica) During 1998, in the course of its entire history, Costa Rica is set to earn a major part from high technology exports than from coffee or bananas or from the flourishing tourism industry. The World Bank has highly rated the country in terms of political and financial health. In the annual conference, the World Bank commended the nation as possessing one of the most stable and robust democracies among the Latin American countries. World Bank also praised the country because of the healthy growth rate and some of the best social indicators in the continent. The country is one of the strongest advocates of continental trade zone, and already possesses its own agreement with Mexico and other nations of the region. The number of tree trade zones of the country and tax holiday opportunities is lucrative. They extend benefits like exemption from import duties on capital goods, components, raw material; unlimited profit repatriation, exemption of tax on profits for 8 years and a 50% exempti on for the subsequent four years. (Doing Business in Costa Rica) Even though the country is not an offshore financial centre in the conventional sense, it favourable tax structure implies that it could have been categorized as a tax haven some decades ago. But it was not until recently that the government came to know of its tax haven potential and started to enact laws and market this sector of economic activity. The country possess a lot of characteristic feature which renders it a distinct advantage compared to other offshore jurisdictions inclusive a perceived on shore jurisdictional status, rock bottom taxes and a fiscal policy that does not differentiate between residents and non-residents for taxation purposes. Off-shore activity is at present booming in Costa Rica and a number of popular companies have established operations, however the industry is yet just in its early stages. A major offshore banking industry is not present primarily due to the fact that the industry came out of the shackles of state control in the year 1996. (Offshore Business Activities in Costa Rica) The financial institutions in the