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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 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