Panama has historically served as the crossroads of trade for
the Americas. Its strategic location as a bridge between two
oceans and the meeting of two continents has made Panama not
only a maritime and air transport hub, but also an international
trading, banking, and services center. Panama’s global and
regional prominence is being enhanced by recent trade
liberalization and privatization, and it is participating
actively in the hemispheric movement toward free trade
agreements. Panama's dollar-based economy offers low inflation
in comparison with neighboring countries and zero foreign
exchange risk. Its government is stable and democratic and
actively seeks foreign investment in all sectors, especially
services, tourism and retirement properties. Due to the
country's historic evolution, which focused resources
overwhelmingly on services and transactions, the assembly and
manufacturing sectors – largely comprised of production of items
such as processed foods, chemical products, construction
materials and