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
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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.
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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