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Costa Rica Vs Nicaragua Essay

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Foreign direct investment is susceptible to political and economical trends and stability. Nicaragua and Costa Rica are neighboring countries with some economic similarities but vast political differences. As for the world monetary fund, both countries rank very differently on attractive FDI environmental. Nicaragua ranked number 127th of 190 and Costa Rica ranked 61st. Moreover, their economies differ as nicaragua’s purchasing power is lower middle ($1,991-$4,580) income, whereas Costa Rica purchasing power lower high income ($9170-$20,000). Thus making Costa Rica a more attractive market for retail and added value products than Nicaragua, that would flourish on wholesale retail and low cost products.
Their HDI is a reflection on both countries policies and development, where Nicaragua scored and average of 1.06 and Costa Rica averaged 0.70. Moreover, curiously enough their population below poverty line are quite similar with 21.7% for Costa Rica and 29.6% for Nicaragua. …show more content…

Moreover their industry efforts to develop multinational services, life sciences, advanced manufacturing and the food industry has played a significant role in their growing economy, that grows at 4%. Furthermore, their economy is moving forward an economy of knowledge, innovating in technical and scientific skills and advanced intellectual capability, making Costa Rica very attractive for the investment of technological and scientific advancement; as well as innovation in their already well established manufacturing and agricultural

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