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Foreign Direct Investment in Jamaica: Risks and Opportunities

Using the CIA World Factbook and various search engines, answer the following questions in a two page paper:

1. Why might an American company want to invest in Jamaica?'

2. What are the main risks an American company would face if they chose Jamaica for a foreign direct investment? How could it handle these risks?

Assignment Expectations:

A paper detailing the risks and opportunities facing a US company making a direct investment in Jamaica.

Solution Preview

Please refer to the attached file for the response.


I. Why Might an American Company Want to Invest in Jamaica
A. Political and trade environments in Jamaica are favourable and conducive to an American Company's investment as manifested by the following ( http://www.state.govt):
1. Jamaica has close ties/relations with US on trade, financial, and cultural aspects. Such a relation has been considered as close and productive relations.
2. Jamaica has diplomatic relations with most countries (including the US) and is a member of United Nations and Organization of American States.
3. U.S. and Jamaican officials have been continuously working toward productivity of joint ventures, including security, economic development and trade.
4. Jamaican government supports efforts to create a Free Trade Area of the Americas (FTAA).
5. US is Jamaica's most important trading partner.
6. The country is encouraging foreign ...

Solution Summary

The foreign direct investments in Jamaica risk and opportunities are examined.