Santiago-Rivera, Amarilis
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Publication The study of the export activity in Puerto Rico and finding new export opportunities with a decision support model analysis(2011) Santiago-Rivera, Amarilis; Amador-Dumois, María A.; College of Business Administration; Córdova Claudio, Mario; Ortiz Rodríguez, Rosario A.; Department of Business Administration; Santiago Román, Aidsa I.International trade of goods and services as a percentage of world gross domestic products (GDP) increased from approximately 12.1 percent in 1960 to 30 percent in 2010 (World Bank, 2011). As of 2009, Puerto Rico net exports started a positive trend when exports surpassed imports. This reality contrasts with decades of misrepresented governmental data that included trade with the United States of America (U.S.A.) as international trade. Operations managers of companies located in Puerto Rico interested in increasing production, sales, and income, should consider exporting. Although Puerto Rico has vast experience trading with the USA and territories, its experience in other markets is more limited. This research presents an export market selection method to help managers and export promotion agencies determine which countries they should focus on for their export activities. The Decision Support Model (DSM) used was previously tested in other countries, such as Belgium and South Africa. Two single regression models were performed with Puerto Rico’s exports (PRX) as the dependent variable and other countries GPD (OGDP) and country risk (OCR) as independent variables. PRX significant linear relationship with OGDP was not supported but was supported with OCR. Forty five countries passed the DSM first filter. Of these, Puerto Rico exported to 38 of them. Puerto Rico’s managers and export promotion public officials should focus its limited resources in the selection of countries with more income and stability.