Essay About Costa Ricawhy And Costa Rica

Intel in Costa Rica
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COSTA RICAWhy has President Figueres embarked on a new economic development strategy upon taking office? How does his thinking differ from past approaches?  Evaluate this new approach.  The changes are needed to increase the national level of awareness of the singular opportunity that Costa Rica has. He think that Costa Rica need to have a common national vision and break the political cycle of shifts in economic strategy when the ruling political party changes and concentrate on what is truly important. The economy moves to the next level, in the context of a rapidly changing Latin American and global economy.Does electronics/information technology represent a realistic potential cluster for Costa Rica? What conditions are necessary for a viable cluster? In 1996, the Costa Rican economy was showing the initial signs of a transition toward more sophisticated electronics exports. A number of companies had established more advanced manufacturing operations under the Zona Franca legislation, leading to the exports of medical equipment ($44 million), communications equipment ($36 2 million), and hair dryers ($45 million). Table A lists some of these companies and their activities in Costa Rica. Intels investment of $300 million-$500 million would represent the largest foreign investment ever made in Costa Rica by a single company. The Intel ATP plant was expected to create 2,000 direct jobs in 1998 and 3,500 by 2000, of which 20% would be management and engineering positions. Four indirect jobs could potentially be created for each Intel position. Gross exports derived from the investment were expected to reach $1.5 billion in 1999 and $3 billion by 2000. Additionally, some software companies had been formed, mostly as a result of spinoffs from Zona Franca companies, universities, research centers, and other large companies. The Chamber of Software Producers of Costa Rica estimated that there were 150 companies that developed customized software in 1996, all with fewer than 150 employees. It was estimated that the industry had aggregate sales of $55 million, which were expected to reach $100 million-$500 million by 2000.Why is Intel interested in a Latin American plant as part of its global strategy?  Latin America plant completely the categories that Intel needed. Intel need’s process focused on our view of the world, our geographic spread of revenue and risk. They were seeking a location outside of the Southeast Asian countries, where they had focused most of their back-end assembly and testing work. If there was a macro issue that affected the whole region, they would have all our eggs in one basket. Therefore, they were looking for a site in Latin America or Eastern Europe, which were the two spheres that met their generic criteria. They dismissed the Eastern European alternative because they did not believe that any of the countries were completely disassociated with the old Soviet-style model. Than the focus became Latin America.