Investing in the DR
As an avid reader and sometimes contributor to this board, I see a lot of post regarding people wishing to invest in the DR, either by buying or opening a business or investing their money there. Here are some things to consider.
Capital has three important characteristics. It is mobile, sensitive and SCARCE. It attempts to settle in countries or localities where government is stable, economic activity is not over-regulated, the investment climate is hospitable and satisfactory opportunities exsist. The decison to where capital will flow is guided by the following:
1. Political environment-Is the country involved or LIKELY to be involved in external or internal conflict.
2. Economic trends-Growth in gross domestic product, inflation rate, levels of economic activity.
3. Fiscal policy-managing the growth of the nation's money supply and the extent to which it promotes price and foreign exchange stability.
4. Opportunities for investmen and satisfactory returns on investment when considering the risks to be accepted.
5. Characteristics of the labour force-Is it skilled and productive?
Due to its mobility capital moves in or out of countries or localities in anticipation of changes in taxation, exchange policy, trade barriers, government attitudes, ect.
It moves to where it is best use can be made of it and attempts to avoid areas where the above factors are not positive.
Capital is scarce worldwide and cannot be increased sythetically or by government decree.
Therefore, those individuals who have thought about investment their should think about these guidelines.
The DR is best enjoyed by investing you money where it will earn a sufficient return, then you can enjoy all that the DR has to offer without the added burden of business and investment problems.
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