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The best reasons why your business should expand into Central America

If you’re looking for great ways to expand your business, have you thought about how well you could do expanding into Central America? No matter where you are in the world, expanding here may not be your first idea, but it’s definitely one you’re going to want to consider. There are plenty of great reasons […]

If you’re looking for great ways to expand your business, have you thought about how well you could do expanding into Central America? No matter where you are in the world, expanding here may not be your first idea, but it’s definitely one you’re going to want to consider.

There are plenty of great reasons why Central America will be a place you’ll want to check out, and today Katherine Rundell, a tech writer from Paper Writing and Essay Roo, is going to share with you some of them.

Central America’s Free Trade Zones

Perhaps the best of the best reason why Central America should be topping your business expansion list, there are a ton of Free Trade Zones (FTZs) within Central America, which means that there are some excellent commercial conditions in which businesses can have their operations supported.

If you operate within these zones, you’ll be given access to special trading and tax benefits you get nowhere else in the world, including tax exemptions clauses on importing and exporting goods both to and from the zones be incredibly cost-effective. You’ll also have access to a tax reduction of both national and local taxes, and leasing costs of lands within these zones tend to be some of the lowest costs around.

If you’re looking for a way to automate your logistics and save a ton of money, then these are benefits you’re going to want to take advantage of. So much money can be saved when you do this the right way and set up the right kind of framework.

A wealth of developing markets

Think about the markets of Central America and how much-untapped potential there is there. Sure, when you consider that Latin America is relatively far behind in terms of technology and the Dawn Age of Information, larger markets are catching up very quickly, including major cities and markets in countries like Brazil, Columbia, Chile, and Argentina.

The same applies to Central America, especially when you consider that countries are starting to introduce 5G internet connections. Countries like Costa Rica were able to produce 98.53% of all their electrical energy from renewable resources, which is a massive step for a country of this caliber, meaning that it’s leading the way in this essence for many countries around the world.

Over the next couple of decades, you can be sure a ton of developmental and innovative changes will take place, and there will be plenty of emerging markets as a result. By setting up your business in these places now, you’re allowing yourself to be a leading force when the changes really start to unfold.

A ton of trade opportunities

Since you’ll be based in Central America, this means you’ll have a ton of opportunities to trade with both North America and South America. When you consider the populations of these two areas are 367 million and 422 million, respectively, that’s a massive market base that you’ll have easy access too.

This is backed up and supported by the trade agreements that Central America already has in place. For example, the Dominican Republic-Central America Free Trade Agreement was set up and agreed upon to reduce the number of trade barriers between countries like the US, Costa Rica, Honduras, Nicaragua, and Guatemala, all with the security you need to ensure it’s profitable.

World-class international trade facilities

Hand in hand with the consideration above, it’s worth noting that Central America has international trading facilities which are on par, and even excel, other leading countries and their facilities from around the world. When it comes to the logistics and transport options for your business, you can be sure that Central America will be able to cater to them all.

Take a look at the Panama Canal, for example. Opened all the way back in 1914, this is the largest canal that links the Pacific and the Atlantic and is considered by many to be one of the most strategic man-made canals in the world. With your own business, you’ll be able to take full advantage of these opportunities for both importing and exporting.

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