Angela Gomez

Dr. Nelson

TGM 101

February 12, 2023

Intel Case

After carefully considering Brazil, Chile, Mexico, and Costa Rica, I would have also

invested in Costa Rica if I were Ted Telford. Beginning with Brazil, Sao Paulo had an excellent

infrastructure, an international airport, high-tech firms, and skilled and highly trained workers.

Although this checked off the majority of Intel’s requirements, Sao Paulo already attracted many

investments therefore it could not offer many tax breaks, there were many harsh labor unions at

the time, government officials were dismissive, and Brazil also has expensive manufacturing

costs and fees. In the case of Chile, Santiago offered highly skilled and educated workers. But

they did not have very many workers which would lead to expensive labor costs. Chile’s

government did not offer any tax breaks, Chile’s far location was not ideal for transportation, and

its free-market approach at the time was not suitable for a manufacturing industry. As for

Mexico, Guadalajara offered high numbers of tactically trained technicians and engineers at

low-cost labor, a nearby location, transportation, and excellent infrastructure, and NAFTA

allowed for no tariff exportations to the US. On the other hand, Intel was skeptical of Mexico’s

investment promotion agencies, present union labor laws, political instability, and essentially no

tax breaks. Despite its setbacks, Costa Rica remained the best country for Intel to invest in.

Telford’s team was initially very wary of its lack of military, limited transportation, and its

inadequate amounts of skilled technicians. On the contrary, Costa Rica offered private, credible,

and engaged investment promotion agencies. These agencies clarified and promised transparency
and predictable rules through their government’s democracy, solidarity associations, and

significant tax breaks. Many of these qualities and benefits were not assured or even offered by

other countries. Due to the private agencies, all of Intel’s concerns were addressed with

solutions. Government officials promised higher education for more skilled techs, more flights,

and even lower electrical power costs. Costa Rica had not only reached out to Intel but was

willing to engage and collaborate in order to bring investment into their country and negotiate

competitive and hard-to-find terms with Intel. Considering all options, Costa Rica would have

also been the country I would have chosen to invest in if I was Ted Telford