active bilingual curriculum (English as a second language), Costa Rica

was first able to attract smaller investments in electronics manufacturing.

This groundwork paved the way for Intels consideration of Costa Rica.
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Receptive Investment Environment Costa Ricas consistent receptivity to,

and working relationship with, foreign investors resulted in subsequent enthusiastic recommendations to Intel from multinational firms already operating in
the country. CINDE was able to use these powerful references to complement
the story Intel heard from the government.

Negotiating Tactics
While the factors already described were in large measure already in place in Costa
Rica, negotiating tactics and specific concessions nevertheless were critical to the
final outcome:
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Unified Response Costa Rica used its small size as a competitive advantage,
focusing attention on the project within a close-knit community of government,
media and business. This created an impression of a unified and cooperative
government team operating within Costa Rica. CINDEs autonomous, nonprofit organizational structure enabled it to bridge both the government and
business spheres, making it an effective intermediary for the prospective
investor. CINDE was empowered to assemble responses to complex issues
Intel was researching and to help educate the government about Intels
requirements, conveying a tone of openness and responsiveness that Intel
was known to appreciate during the site selection process.

Extensive Personal Involvement from the Top It is well known that the
President of Costa Rica chose to take an active, personal role in the process,
insisting that the government provide a clear, consistent message to Intel.
President Figueres assigned the Minister of Foreign Trade to coordinate the
governments response among various agencies, a role that became critical
as negotiations intensified. Throughout the process, President Figueres spoke
nearly every week with Minister Rossi and Enrique Egloff of CINDE to help
target his intervention, urging other ministers to expedite matters critical to
the project. He frequently met, formally and informally, with Intel executives
visiting Costa Rica. The President, the Minister and the CINDE executive
visited Intel facilities in the United States.

Speed Intels industry is characterized by the need for speed in adapting to

repeatedly short product life cycles. Costa Rica demonstrated first-hand that the
government could be responsive throughout the entire site selection process,
even on complex issues such as addressing educational improvements.

Refusal to Engage in Extraordinary Measures The government apparently

did not make extra-legal arrangements, nor did it offer dramatic giveaways
or kickbacks, nor did Intel request any. Although the Costa Ricans were
willing to modify laws, policies and procedures to accommodate Intel,
these were designed to apply to all foreign investors in Costa Rica. This furthered the countrys reputation of transparency among foreign investors.

INVESTING IN DEVELOPMENT INTEL COSTA RICA

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