U.S. companies should be aware of – and consider strategies to mitigate – the physical, financial, and reputational risks of doing business or investing in Nicaragua.
The use of agents and distributors is the most common method to export U.S. products and services. Face-to-face meetings are generally required to establish business relationships. U.S. companies should visit potential partners or agents prior to entering a relationship. Identifying one local representative for the Pacific and central regions and another for the Caribbean coast is often required to ensure nationwide coverage.
U.S. companies should also consult a local lawyer as part of due diligence to vet potential local partners for links with OFAC-designated entities and other links to corrupt or abusive government entities. In addition to a local lawyer, conversations with local professionals and networks such as the American Chamber of Commerce can improve understanding of the local investment landscape.