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Macroeconomics- Movie Location: Panama
Durand Torrence
Full Sail University
Author Notes
Durand J. Torrence, Entertainment Business B.S. undergraduate, Full Sail
University.
This research is for Week #3 ECO2005-O course.
Correspondence concerning this paper should be address to Durand J. Torrence,
contact: djtorrence@student.fullsail.edu
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Abstract
This paper explores the benefits of have Panama as the prime international location for the major
Los Angeles film studio. This research was conducted on online (Internet). The research that
went into finding this location includes geographic location, government structure and
micro/macro economical statics.
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Macroeconomics- Movie Location: Panama
“Estar limpio”, is an idiom commonly used in Panamanian culture, which translate to “to
have no money” which briefly can describe the peoples’ view of this country’s economy.
Panama is an isthmus located in Central America, which connects the continents of North and
South America. This country canal, Panama Canal completed in 1914, is one of the worlds most
strategic artificial waterways by connecting the Atlantic and Pacific Oceans and making ship
travel safer. (Cho, Bray, Gordon, Worthington, & Padelford, 2019)
Panama’s climate is mostly hot and humid with a lengthy rainy season the last from May
through January. This is mainly because geographical location. Panama climate does consist of a
short dry season only lasting from mid-January until early May. This tropical weather provides
thick dense rain forest but also provides beautiful coastal plains with rolling hills. Being able to
have such vast landscape provides multiple filming options for the production crew. (Central
Intelligence Agency) Travel to this region and climates does not required any addition
vaccinations, as long as production crew is up to date on vaccinations that are suggested by the
CDC for the United States.
The government of Panama has a similar structure as the United States where you have
the three branches: Executive, Legislative, and Judicial. But political parties are vastly different
in forms of representation, where in some case parties will join alliance for the betterment. The
government has multiple consulates across the Untied States, which speaks to the open health
relation, so in the event that situations arises, there will be open communication between the two
countries. Gaining their independence from Columbia, November 3, 1903, Panama is still
amending their Constitution, last in 2014. (Central Intelligence Agency)
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Balboa (PAB) is the name of the national currency of Panama. The exchange rate for the
United States dollar (USD) is one to one. Even though there is a one to one exchange rate, the
inflation rate in Panama is 4.1% compared to the U.S. rate of 1.5%, which can affect how “far”
your dollar goes. But this also can do seen as a added incentive to do your job right and
effectively and not waste time. (U.S. State Dept.)
Gross domestic product (GDP) for Panama, as of 2017 estimates, was 61.84 billion and
has a unstable trend. The growth rate since 2015 has fluctuated but has been consistently
between five and six percent. Majority of the GDP consists of services, which in turn can be
invaluable to the production crew in this foreign country. Household consumption is far lower
comparing to the consumption in the U.S. which leads me to believe everyday expenses are not
as costly. (Central Intelligence Agency) The smallest percent that contributes to GDP is
agriculture which consist of bananas, rice, corn, coffee, sugarcane, vegetables; livestock; shrimp.
GDP per capital, which measures the country’s economic output for its number of
citizens, is steadily increasing. Wealth distribution is not the far off from the U.S. percent of
15.1% with Panama’s around 23% as of 2015. (Central Intelligence Agency) The distribution of
family income has decreased over the past ten years will debt is increasing as well as
unemployment. Panama’s expenditures consistently exceed the country’s revenues, which as of
2017 estimates says Panama is -3.036 billion USD in debt. Some of the Panama’s debt can be
attributed to the notorious issues of tax evasion and money-laundering. (International, 2016)
As stated before, the Panama Canal is such a vital shipping lane to the world there are no
known enemies. This is so much the case that Panama does not have a regular military force just
special security and police forces. This is a big plus for the production crew, they are not in any
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hostile territories and can work free of distress. (Central Intelligence Agency) No international
disputes. (U.S. State Dept.)
The labor force is comprised of mostly under skilled workforce, which has created a
shortage of skilled labor. This has led to a shortage of workers in the agricultural and industrial
work force with over 60% of workers providing services. (U.S. State Dept.)
As it relates to infrastructure, over 90% of the population has electricity and in rural areas
there is over 80% electrification when filming in more remote locations. Although there are
concerns for the remote border locations as sometimes organized illegal narcotics operate within
these areas, the overall transportation infrastructure is “developed”. Panama consist of over 57
paved airports, 77 km of railway, three major seaports. (Central Intelligence Agency)
The countries main export is gold, as of 2013. With other exports including bananas,
shrimp, sugar, iron and steel waste, pineapples and watermelons this has generated about 18.87
billion (2013 est.). (U.S. State Dept.) Imports and the other hand has costed 26.61 billion (2013
est.), which are mainly fuel products, medicines, vehicles, iron and steel rods and cellular
phones.
The reason I chose this Panama was because of its importance to the world and I assumed
it would be a place for of international conflict. I also considered the fact it was not a “big”
tourist destination and the chances of classmates choosing the same country may be less. Panama
provides a nice filming location with multiple topographical features which will provide the
production crew with many options in such a small country, which saves expenses in traveling
while filming.
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Reference
Central Intelligence Agency. (n.d.). Central Intelligence Agency. Retrieved
November 25, 2019, from https://www.cia.gov/library/publications/the-world-
factbook/geos/pm.html.
Cho, A., Bray, W. D., Gordon, B. L., Worthington, W. E., & Padelford, N. J.
(2019, November 21). Panama Canal. Retrieved November 25, 2019, from
https://www.britannica.com/topic/Panama-Canal.
International. (2016, February 18). The problem child. Retrieved November 25,
2019, from https://www.economist.com/international/2016/02/18/the-problem-child.
U.S. State Dept. (n.d.). Panama. Retrieved November 25, 2019, from
https://www.infoplease.com/world/countries/panama.
