Costa Rica - Economy Overview

NameInstructor s NameSubject CodeDateEconomy Overview : rib RicaOutlineIntroductionForeign Exchange lay out SystemCurrent Exchange ordain : Trends and next ExpectationsMacroeconomic EnvironmentInflationUnemploymentInterest RateBalance of PaymentsMonetary polityBusiness cycleEconomic and business risksPolitical EnvironmentInfrastructure : Labor , Roads , telecommunication net income , net profit , land availabilityInternational Aid : IMF , WTOFocus on Telecommunication BasicsAssessment of Investment prospect in the Telecom Sector and regimen Initiatives to Increase FDIEconomy Overview : costa RicaCosta Rica (Spanish for Rich Coast ) is a craggy republic in Central America . Costa Rica gained freedom in 1821from Spain Nicaragua bs Costa Rica from the north while sailor boy lies at the southerly boundaries . The capital is Sa n Josy , and the official language is Spanish (Webster s Encyclopedia 87According to Agustnn Carstens , representative Managing Director , IMF , Costa Rica has enjoyed a permanent economic process and crisis free economics for the past 20 classs because of 4 features of its economic policy (i Strong dialect of economic policy on human development and complaisant cohesion (ii ) stable macroeconomic policy (iii ) Trade relaxation and (iv ) Structural adjustments (diversification from elementary baseThe verdant sector , which accounts for 14 of the gross domestic product and employs nearly half(a) the population . Costa Rica is the creative activity s second largest exporter of bananas . new(prenominal) agricultural exports include coffee (amongst the best in the world , peag , cut flowers and cattle . Industry accounts for 22 of gross domestic product . major industries include textiles and apparel production of electronic components , mental synthesis materials , ceme ntum and fertilizer and food processing . Se! rvices dedicate up the remaining 64 (CIA Factbook ) Tourism is the largest foreign happy chance earner for the countryForeign Exchange Rate SystemA historical review of the put back step placement followed by Costa Rica shows that for the peak 1974-79 a furbish up rowlockged to the US clam was practiced .

so for a picture period from 1980-82 a freewheeling swap severalize system was adopted (Papaioannou 17 . However since 1983 to menstruation year a crawling come through system is beingness followed , whereby the government adjusts the exchange rate by small everyday (daily ) amounts as the sense of balan ce changes (Sloman 731 . In October 2006 the Central situate of the country announced a shift from the crawling peg to the crawling stripes regimen whereby the government will take on the colon to freely float within a band which was set at a narrow 3 , scarcely subsequently widened . The government reserves the right to intervene in case the exchange rate moves beyond the band . A shift to the crawling peg regimes signals towards a more unbuttoned trade policyCurrent Exchange Rate : Trends and Future ExpectationsThe Current position Exchange Rate of the Costa Rican Colon against the US long horse is 492 .98 (Buy rate . Costa Rican Colones per US dollar - 519 .53 (2007 , 511 .3 (2006 , 477 .79 (2005 , 437 .91 (2004 , 398 .66 (2003 359 .82 (2002 . The Costa Rican Colon was consistently depreciating against the dollar over the 6 year time-period , in fact an abstract of the 17 year period between 1979-1996 shows...If you want to proceed a full essay, order it on our website : OrderCustomP! aper.com

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