Doing Business in Nicaragua

Subject (Course): International Trade and Business in Nicaragua - Managua. Syllabus:

1. Introduction to the Republic of Nicaragua (Central America).
2. Nicaraguan Economy.
3. International Trade of Nicaragua.
4. Foreign Direct Investment (FDI) in Nicaragua.
5. Doing Business in Managua
6. Case Study: Business Opportunities in Nicaragua:
   - Textiles
   - Tourism
   - Business Process Outsourcing
   - Manufacturing
   - Agribusiness
   - Energy.
7. Case Study: Pellas Group.
8. Introduction to Spanish
9. Access to the Nicaraguan Market
10. Business Plan for Nicaragua

Objectives of the subject “Doing Business in the Republic of Nicaragua”:

1. To analyse the Nicaraguan economy and foreign trade
2. To evaluate business opportunities in the Republic of Nicaragua
3. To explore Nicaragua's trade relations with the student's country
4. To know Nicaragua's Free Trade Agreements
5. To examine the profile of Nicaraguan Companies
6. To develop a business plan for the Nicaraguan Market

Sample of the subject - Doing Business in Nicaragua

Subject Description (Trade and Business in Nicaragua).

The Republic of Nicaragua.

1. The population of the Republic of Nicaragua (6 million) is very young (80% under the age of 39).
2. Managua, the capital of the Republic of Nicaragua, has a total population of 1.3 millions of people; of which 27% of the population of Managua (350,000) is between 20-34 years.
3. Nicaraguan official language: Spanish
4. Nicaragua has an advantaged location on the American continent (2'30 hours by air, three days by sea from the United States).
5. Nicaragua shares borders with Honduras and Costa Rica.
6. Nicaragua is the biggest nation in Central America (130,600 square kilometres).
7. Religion in Nicaragua: Christianity (Catholicism: 2,6 million).
8. Nicaragua belongs to the Christian Civilisation - Latin American area
9. Nicaragua gained independence from Spain in 1811
10. Abolition of slavery in Nicaragua: 1836
11. African Diaspora in Nicaragua: 0.5 millions of people (9% of the Nicaraguan population)

Nicaraguan Economy.

The Republic of Nicaragua is one of the top economies in the Central American region with the most favourable conditions for doing business (World Bank).

1. Nicaragua has a 22,000 kilometres road network connecting Managua (the Capital of Nicaragua) to all main cities.
2. The Pan-American Highway (370 kilometres) connects Nicaragua with Honduras and Costa Rica.
3. Telecommunication sector is completely privatised and is considered to be one of the most modern in Central America.
4. In the Latin American Globalisation Index, Nicaragua was ranked as the third most globalised country in Latin America.
5. Flight time from Managua to the United States is two hours by plane and three days by ship. This proximity of Nicaragua to North America, Central, and South America positions it as very interesting facilities for companies exporting to these markets.
6. The Republic of Nicaragua registered a growth rate of GDP of 3.2%.
7. Nicaraguan Gross Domestic Product: 6,400 million
8. Agribusiness, fisheries, and forestry accounted for 19% of the GDP of Nicaragua.
9. In the Republic of Nicaragua, there are thirty-eight industrial parks, mainly in the textile and clothing sector and the manufacturing sector (especially medical devices).
10. Nicaraguan Currency: Córdoba

Foreign Trade of Nicaragua.

1. Nicaraguan total exports: 2,700 million dollars
2. Nicaragua is an excellent export platform for regional markets (Mexico, Central and South America, and the Andean countries)
3. Nicaragua is a member of the Central American Common Market
4. Nicaragua is third most globalised nation in Latin America (Latin American Globalisation Index)
5. The main export markets of the Republic of Nicaragua: the United States, the Central American Common Market, the European Union (EU), Mexico, and Japan.
6. The main import partners of Nicaragua: the United States, Mexico, Costa Rica, Venezuela, Guatemala, and El Salvador.
7. The number of tourists increased by 50%.
8. The Inter-American Development Bank forgives 50% of Nicaragua's foreign debt.

Foreign direct investment (FDI) in Nicaragua.

1. The total FDI: 434.2 million dollars
2. The main sectors receptors of foreign direct investment: energy, telecommunications, and Free Zones.

Nicaragua's Free Trade Agreements and Market Access

1. Central American Integration System (SICA)
2. Central American Common Market - Integrated with SICA -
3. The Republic of Nicaragua has Free Trade Agreements (FTA) in force with the United States, Taiwan, Mexico, Panama, Colombia, the European Union, the Dominican Republic, and Chile
4. Mesoamerica Project
5. Association of Caribbean States (ACS)

Nicaragua is a member of:

1. Bolivarian Alternative for the Americas (ALBA)
2. Latin American and Caribbean Economic System (SELA)
3. Mesoamerica Project
4. Association of Caribbean States (ACS)
5. Inter-American Development Bank
6. Economic Commission for Latin America (ECLAC)
7. Organisation of American States (OAS)
8. Forum East Asia-Latin America
9. Nicaragua is a member of the World Bank (WB), the International Monetary Fund (IMF), the World Trade Organisation (WTO), the United Nations

The European Union and Nicaragua:

Mexico-Nicaragua FTA:

Trade Agreement with Taiwan: