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Fdi Costa Rica

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International Markets INTERNATINAL MARKET PLACES, TRADE AND INVESTMENT Name of Author Class Professor School City and State Date 1 International Markets 2 International Market Places, Trade and Investment Question 1. For decades, Costa Rica has been cited as an open market and diversified economy with one of the highest FDI inflows in Latin America due to its relative political stability and a long democratic tradition in the region. Regional integration has been one of the factors that encouraged the flow of FDI into Latin America. However, the entry of large foreign multinationals into specific markets in Latin America and Costa Rica in particular has been linked to the country’s stable political climate. Costa Rica’s stable institutions, formalized economic links and state-initiated investment accords, led to the development of comparative advantages that favored the country to FDI and encouraged foreign multinationals to develop responsiveness to the interests and welfare of Costa Rica (Schuler and Brown 1999). As agued by Thirlwall (2012), the welfare and interests of the people are anchored in their adequate participation in the labor market and in the protection of their rights against the instabilities of the market by the state. Additionally, as stressed by Cook12 (2011, 69), the linkage between market incorporation and social incorporation is commensurate to the level of democracy in a country and has positive impact to the influx of FDIs. One of the fac ...
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