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Puerto Rico




              Creusier Tiphanie
Country Presentation
 Located in the Caribbean. It is a jurisdiction
with its own internal government, but under
the Constitution and laws of the USA

Language        spanish and english

The archipelago of Puerto Rico consists of
several islands.

Area    9104 Km2

Population    4 million people, U.S. citizens
since 1917 and is estimated to 4 million
portorricains people living in the U.S.     Creusier Tiphanie
The Business in Puerto Rico



Political Risks
Economic Risks
Sociocultural Risks
Technologic Risks
Ecological Risks
Legislatives Risks
In terms of country risks, the risks to the
business environment are basically the same
in Puerto Rico existing risks in the U.S.
                                       Creusier Tiphanie
The Political risks
 Puerto Rico has representation in the U.S. Congress
  with a right to voice but no vote except for a few
  commissions of the Congress.
 3 political parties  Partido Nuevo Progresista (PNP),
  Popular Democrático (PPD) y Partido Independentista
  Puertorriqueño (PIP)
 Governor´s island Luis Fortuño.
 The uncertainty on the political status makes the
  island difficult policy
 But the agency Ducroire notice         2 on the political
  stability of the island.
 Tense political situation until the problem of political
  status is resolved
       Even with recent events, politicals risks
          that could affect the environment Creusier Tiphanie
                  business are low.
The Economic Risks
 PIB     93.3 billion USD in 2008

 Positive trade balance with the U.S.

 Average income per family in 2009 was 43,193.0
  U.S. $

 One of the best economies of the Caribbean

 Industry leading sector of the island

 The Free Trade agreement (FTA) between USA,
  Mexico and Canada supports Puerto Rico

                                               Creusier Tiphanie
•Tourism is an important source of income for
the island.
•With Costa Rica, PR was designated as the
best country for foreign investment in all the
Caribbean and Central America.
•Because of its close relations with the U.S.,
PR was affected by the crisis, but recovering
economy.
•The agency Ducroire      notice B on the
comercial risks in Puerto Rico
Economic risks that could affect the business
environment are weak and PR appears to be a
very attractive country for foreign investment.

                                          Creusier Tiphanie
The Sociocultural Risks
•Rate of unemployment       15.9%


•Good level of education 94.1%         Illiteracy low


•Crime linked to drug trafficking rather high


     Sociocultural risks rather sizable.




                                                  Creusier Tiphanie
The Technological Risks

•Technological threats related to fires, leaks of
chemicals in industrial areas. The industry is the
first sector of the economy of Puerto Rico

•Good knowledge of technology      many
American companies

   Technological risks are not a danger to the
            business environment



                                            Creusier Tiphanie
The ecological Risks
•High probability of flooding and landslides in
areas of low altitude
•Located almost at the point between two tectonic
plates of Caribbean and North America possible
earthquakes but not happened for several years
•Hurricanes and tropical storms like all Caribbean
islands
•There are the local building codes and federal
(USA) strict order to avoid possible disasters

 Environmental hazards may affect the business
 remain because of its location in the Caribbean
       but implementation of measures to
                 reduce them.                Creusier Tiphanie
The Legislatives Risks
•Puerto Rico is part of the customs territory of the USA. In
PR rules apply equally manner in all U.S. states
                              N
•International agreements A Nafta, SGP, TLC with Chili
                              F
and Singapur, CARICOM, Interpol, IOC, ITUC, UNWTO,
                              T
WFT                           A
•Lack to pay federal taxes and no quota restrictions between
the U.S. and PR
•Imports      Local Sales Tax of 7%
•There are three areas where it is applied a special customs
regime
•Transport to USA Domestics does not require official
documentation as if it were to trade with foreign countries.

     Do not present legislative risks and benefits of US
        international agreements for foreign trade.
                                                      Creusier Tiphanie
Conclusion
•Problems of drug-related crime persist but,

•Do not have a lot of risks in all other areas

•Enjoys many advantages for trade

•Possesses almost the best investment status
of all the Caribbean and Central America. Just
as a stringent laws against corruption. There is
no impunity for corruption.

Puerto Rico is the best
Investment Opportunity
Caribbean.                                  Creusier Tiphanie

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Economic Info. Puerto Rico (Absolutgest)

  • 1. Puerto Rico Creusier Tiphanie
  • 2. Country Presentation  Located in the Caribbean. It is a jurisdiction with its own internal government, but under the Constitution and laws of the USA Language spanish and english The archipelago of Puerto Rico consists of several islands. Area 9104 Km2 Population 4 million people, U.S. citizens since 1917 and is estimated to 4 million portorricains people living in the U.S. Creusier Tiphanie
  • 3. The Business in Puerto Rico Political Risks Economic Risks Sociocultural Risks Technologic Risks Ecological Risks Legislatives Risks In terms of country risks, the risks to the business environment are basically the same in Puerto Rico existing risks in the U.S. Creusier Tiphanie
  • 4. The Political risks  Puerto Rico has representation in the U.S. Congress with a right to voice but no vote except for a few commissions of the Congress.  3 political parties Partido Nuevo Progresista (PNP), Popular Democrático (PPD) y Partido Independentista Puertorriqueño (PIP)  Governor´s island Luis Fortuño.  The uncertainty on the political status makes the island difficult policy  But the agency Ducroire notice 2 on the political stability of the island.  Tense political situation until the problem of political status is resolved Even with recent events, politicals risks that could affect the environment Creusier Tiphanie business are low.
  • 5. The Economic Risks  PIB 93.3 billion USD in 2008  Positive trade balance with the U.S.  Average income per family in 2009 was 43,193.0 U.S. $  One of the best economies of the Caribbean  Industry leading sector of the island  The Free Trade agreement (FTA) between USA, Mexico and Canada supports Puerto Rico Creusier Tiphanie
  • 6. •Tourism is an important source of income for the island. •With Costa Rica, PR was designated as the best country for foreign investment in all the Caribbean and Central America. •Because of its close relations with the U.S., PR was affected by the crisis, but recovering economy. •The agency Ducroire notice B on the comercial risks in Puerto Rico Economic risks that could affect the business environment are weak and PR appears to be a very attractive country for foreign investment. Creusier Tiphanie
  • 7. The Sociocultural Risks •Rate of unemployment 15.9% •Good level of education 94.1% Illiteracy low •Crime linked to drug trafficking rather high Sociocultural risks rather sizable. Creusier Tiphanie
  • 8. The Technological Risks •Technological threats related to fires, leaks of chemicals in industrial areas. The industry is the first sector of the economy of Puerto Rico •Good knowledge of technology many American companies Technological risks are not a danger to the business environment Creusier Tiphanie
  • 9. The ecological Risks •High probability of flooding and landslides in areas of low altitude •Located almost at the point between two tectonic plates of Caribbean and North America possible earthquakes but not happened for several years •Hurricanes and tropical storms like all Caribbean islands •There are the local building codes and federal (USA) strict order to avoid possible disasters Environmental hazards may affect the business remain because of its location in the Caribbean but implementation of measures to reduce them. Creusier Tiphanie
  • 10. The Legislatives Risks •Puerto Rico is part of the customs territory of the USA. In PR rules apply equally manner in all U.S. states N •International agreements A Nafta, SGP, TLC with Chili F and Singapur, CARICOM, Interpol, IOC, ITUC, UNWTO, T WFT A •Lack to pay federal taxes and no quota restrictions between the U.S. and PR •Imports Local Sales Tax of 7% •There are three areas where it is applied a special customs regime •Transport to USA Domestics does not require official documentation as if it were to trade with foreign countries. Do not present legislative risks and benefits of US international agreements for foreign trade. Creusier Tiphanie
  • 11. Conclusion •Problems of drug-related crime persist but, •Do not have a lot of risks in all other areas •Enjoys many advantages for trade •Possesses almost the best investment status of all the Caribbean and Central America. Just as a stringent laws against corruption. There is no impunity for corruption. Puerto Rico is the best Investment Opportunity Caribbean. Creusier Tiphanie