Big Fish in a Small Pond :: Essays Papers

Big Fish in a Small Pond While living in Costa Rica last summer I was introduced to a new culture and way of life. The national slogan, â€Å"Puravida,† was the daily greeting while riding my bike down the dirt rode into town for Spanish class. The country’s belief in â€Å"Puravida† translated - ‘pure life’ is one component that makes Costa Rica distinct in this ever-globalizing world. In the small town I lived the people would work for a day, fishing or tour-guiding, and spend the next three days off, displaying an extremely different lifestyle than that of an American entrepreneur. Similarities between Costa Rica and the US, however, were visible. In some of the bigger cities of San Jose and Heredia I was surprised to see the familiar signs of McDonalds, Burger King and Kentucky Fried Chicken mixed in with the local restaurants. In my trip to San Jose I was even more surprised to see a large Intel building. Seeing the Intel building I questioned what they were doing in Costa Rica. From my experience it was odd to see a high-tech American corporation in the middle of an ever-developing country. After the initial shock I was more interested in what effects Intel has had in Costa Rica economically, socially and politically. In particular, did the move of Intel into Costa Rica have positive or negative consequences on the small country? In this paper I will examine the dynamics of the relationship between Intel and Costa Rica and will consider the implications of this interaction for large corporations relationships in developing countries. Using the case study of Intel in Costa Rica I will use a costs-benefit analysis to show why foreign direct investment has positive effects on the host economy. Costa Rica Costa Rica is located in Central America, bordering both the Caribbean Sea and North Pacific Ocean, between Nicaragua and Panama. Costa Rica enjoys the political environment of a democratic republic. The country is open to economic integration of the greater region, being a member of the Central American Common Market(CACM), subscribing to a uniform external tariff and to free-trade internally. Costa Rica also supports the Puebla-panama plan, initiated by Mexico’s president Vincent Fox, which intends the ‘Mesoamerican’ integration of Mexico’s struggling southern states and all seven Central American countries. In addition, since 1948, Costa Rica has not had a military, and despite severe turbulences and civil wars in Central America and border conflicts with Nicaragua and Panama, it has successfully maneuvered itself through these times.