Target's Economic Analysis

El Salvador being one of the smallest countries in Central America geographically has the third largest economy in the region. The economy is greatly affected by money that is sent from family, relatives, or friends living in the United States; it’s estimated that $3.9 billion were entered into the economy and therefore greatly benefit Target’s sales. Many Salvadorans travel to the United Sates in search of objects such as clothing to bring back to the El Salvador because they consider U.S. merchandise to be of a better quality. With that being said, Target’s economical outlook for business is promising because Salvadorans would have a demand and ease of accessibility to U.S. products within their own country. The economy is slowly improving by the following as posted on the CIA World Fact Book:
“In Sept 2013, El Salvador was awarded a $277 million compact with the Millennium Challenge Corporation (MCC) - a United States Government agency aimed at stimulating economic growth through investments in education, public services, enterprise development, and transportation infrastructure to be signed after February 2014.”
Target would also benefit from El Salvador’s open market for US goods and services. Tariffs are relatively low and were reduced further with implementation of Dominican Republic- Central American Free Trade Agreement (CAFTA-DR). Economically speaking I believe that it would a win for both Target and El Salvador since Target stores typically employ about 150-300 employees depending on the size of the store and the typical amount earned monthly by Salvadorans working in the retail environment tend to earn more than other