There are many factors to consider when deciding to do business with another country. The United States is one of the most industrialized countries and is heavily involved in trade and investment. In evaluating the economic situation of a country you can learn a lot about the risks and benefits of doing business with or in that country. For the United States to do business with Guatemala, factors to consider include: international trade, exchange rates, foreign direct investment, economic structure and performance, cultural complications, as well as social and political stability. Guatemala is the most populous Central American country. The country is dominated by the private sector. The United States is Guatemala's largest trading partner, supplying approximately 36% of imports and receiving approximately 42% of the country's exports. The country of Guatemala has experienced economic growth over the past 3 years and is expected to continue these growth patterns. Guatemala's growth is estimated to increase by approximately 3.5% in 2013. As a member of the Central American Common Market (CACM) which includes Costa Rica, Nicaragua, El Salvador and Honduras; Guatemala has been working towards the full implementation of a common external tariff (CET) with little to no tariffs among CACM members. Tariffs on products from sources other than CACM have ranged from 1 to 19%. Although Guatemala would like to welcome foreign investment, complex and confusing laws and regulations seem to discourage it. The government has passed a law on foreign investment in an attempt to address some of the problems. Restrictions still remain on industries such as: utilities, auditing, insurance, mining, f...... middle of paper... and judicial branches very similar to that of the US government. Guatemala elected Perez Molina in late 2011 and was inaugurated in January 2012. Since taking office Molina has taken many actions to help the country's economy. He created a Ministry of Social Development to implement social policy. The ministry was created to help programs and support the cornerstone of former President Colom's anti-poverty agenda. Guatemala is considered a lower-middle income developing economy by the World Bank. Improvements in political and macroeconomic stability have done little to improve levels of poverty and inequality. Being the richest in potential export resources, Guatemala is not using its natural resources to help boost the position of the economy. Some of these resources include oil, timber, nickel, gold, petroleum, hydropower, rare woods, and fish.