San Juan is the capital city of Puerto Rico. Located in the Caribbean, the country has been able to prosper behind its political status highly dependent on US support. The economy is fully dollarized and is based on manufacturing (mainly pharmaceutical) and services (financial and insurance). The country as a whole has been struggling to attract foreign investment. Since the expiration of the tax exemption (section 936), where companies were exempted of federal tax on corporate income, the island has become less attractive for the industry in general. Another deterring aspect is the fact that US regulations are enforced and there is a high cost for doing business. Cost of living is also higher than the average in the US and Latin America. This discourages foreign countries or investors to place an operation on the island. Future perspective growth is at risk as the island is currently unable to self-sustain. The country is completely dependent on imports of food, oil, chemicals, machinery and equipment. Puerto Rico must undergo a strict and well thought vision change in order to maintain its current privileged status. Given the scarcity of natural resources, a look into service oriented industries; IT, software development, banking and insurance, or becoming the Caribbean transportation hub could enable economic growth continuity versus its current US dependence which is being reduced year after year. Logistics management is central to the islands survival given the need of imported goods (food, chemicals, machinery, petroleum and clothing) and the necessity to make exported goods more competitive in order to maintain a positive surplus balance.