Interoceanic Canal Case Study

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Naji Saadat Tutor: Mr.Fadel Ugarte Subject area: Economics Question : To what extent is the construction of the Interoceanic Canal beneficial on the employment rate of Nicaragua Introduction Nicaragua is located in Central America. Nicaragua is surrounded by two countries, to the South it limits with Costa Rica, and to the North Honduras. Nicaragua is considered to be the largest Central American republic. It is famous by its agriculture exportations. Some of the important exports are coffee, sugar, tobacco, and beans. These agricultural exports are very essential for the economy of Nicaragua because it is 31% of the economy, without these agricultural exports the economic activity will decrease. Also 70% of GDP is informal employments…show more content…
After many studies that the government and the Chinese businessman have done about the design , length , duration, and its benefits to Nicaragua the government of Nicaragua gave license to Wang Jing to proceed with the project. The project was launched with $50 billion investment which is going to take place in the southern town of Rivas. It length will be 280 km ( 174 miles ) . The canal will help Nicaragua’s economy by giving opportunities of jobs for Nicaraguan people which will improve status of poor people who cannot find jobs. According to Dr.Paul Oquist who is the commissioner of the project Interoceanic Canal, the project will generate 500,000 jobs after it is being built . The canal will also generate during it process 300 workers to build the roads and roads , 50,000 workers to build constructs the waterway of 280 km which connects Caribbean Sea with the Pacific Ocean. In compare to the Panama Canal , the inter oceanic canal is much wider , deeper and longer . The Panama Canal is only 40 miles ( 65 km ) which is a lot shorter than the Interoceanic canal. Also that the geographic location of the Interoceanic canal is much faster because it is nearer to almost all the countries of the world than the Panama Canal to the rest of the countries, this will not just affect Nicaraguan Economy by doubling it but also the Panama Canal. A lot of countries will use the Interoceanic Canal true to it shorter route.This also has positive effects on the rest of the countries with the building of the Interoceanic canal, they will be able to transport more containers and weight, travel faster, and waste less money on

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