Costa Rica Essay

Costa Rica is one of the Latin countries in America located at its centre. Costa Rica has in its possession two coasts with which it derives two cultures. One of the cultures consists of the Ticos, mainly from the Pacific Oceanside, and the Jamaican and African-Caribbean culture influences the other culture. Consequently, Costa Rica is a business potential country. The country has ventured into the new market with a clear intent of business orientation analysis. Nevertheless, it is surrounded by some macroeconomic environmental factors that it needs to determine for the suitability of the business’ conditions. Also, the government of Costa Rica is regarded as the most democratic and stable government in Latin America. The literacy levels of Costa Ricans are also regarded as the highest due to its education system, which roots from primary grades to university levels. The population dominating in Costa Rica is significantly diverse and multiracial composition.

Most of the people dominating in this country are from various countries including Panama, Nicaragua, Columbia, Spain, Jamaica and the Caribbean. The largest composition of people are the whites, followed with the native Americans and the black race, and the rest being the Afro Caribbean black. The country mostly consists of the young population as its median age ranges to 31.7 years. The country has a well-suited business environment as it is highly urbanized. Also, the country is regarded to be having a high-level set of values. Regarding that values go in hand with religion, it is dominated by the considerable composition of religious groups including the protestants, the catholic, Evangelical, Jehovah witnesses and other religions.

Additionally, Costa Ricans have a conventional business etiquette considering the degree of job opportunities and business activities. This business etiquette has attracted people from outside country to seek job opportunities in Costa Rica, including people from the neighbouring states such as Nicaragua and Colombia. Therefore, Costa Rica is a business-oriented country since it has several advantages that benefit the country through its trade regulations and legal considerations, political-legal environment observation deck, economic measures, transportation and telecommunication.

Trade regulations and legal considerations

There are various trade and legal considerations set in place to facilitate doing of business in Costa Rica. One of the legal considerations put forth in Costa Rica is the registry system. To register patents is the ultimate ownership of industrial property. It needs to be done formally and is facilitated by full completion of the required documents, from the real estate to vehicles. The system is asserted to be accurate and due to date. It earns the rightful records of the owners’ rights towards their properties. Another legal consideration enhanced in Costa Rica is due diligence. Prior to the acquisition of a property in the country, due diligence is followed. The tracks of the property are usually followed from the past ownership of the property, boundaries, survey plans and encumbrances. Also, there are land concessions established in Costa Rica. Land concessions are regarded as incentives given by the government of Costa Rica as leases to the population of the country. These property leases are monitored by the government and how the population densities in these lands utilize the property. Finally, there is a legal consideration of property acquisition in Costa Rica. Buyers own properties of a company in Costa Rica by purchasing the whole company. The transfer of shares is then done via other legal documents. However, the title deed does not change but remains with the name of the previous company.

Political-Legal Environment Observation Deck

The government of Costa Rica is regarded as the most democratic and stable government in Latin America. This significant pattern makes the business doing in the country very essential. The most group that benefits the most are the foreign direct investments (FDI). Furthermore, there is proper infrastructure set by the government of Costa Rica to attract various investors in the country. The infrastructure education provided by the Costa Rica government facilitates education access to its citizens. Subsequently, the literacy level of Costa Rica is regarded as the highest in Latin America. This level of literacy enables the population of the country to be innovative and attract more investors to do more business in the country. The government of Costa Rica has also ensured the development of urbanization in the country is the top across all Latin America countries. The urbanization level of Costa Rica is estimated to be at 79.3 percent. Therefore, compared to other countries in America, this urbanization makes the country earn more proper environment for conducting business. Besides, the country’s level of corruption is ranked as less than half in terms of corruption index. In regard to the observation deck in business, there are taxes paid annually to the government of Costa Rica. These taxes include corporate taxes, which accumulate to thirty per cent. The other taxes paid include property taxes, which are charged quarterly at 0.25 per cent. Furthermore, the government has limited its intervention to production and trade substantially over the years. However, to some fields such as banking sector and insurance, it still holds monopoly power due to investments characterized by private and public sectors. Therefore, Costa Rica was enrolled in the World Trade Organization as a member due to its progressive measures towards business and as a signatory to various international trade agreements.

Economic Measures

The agricultural activities promote the main exports of Costa Rica. The proper economic environment for business in Costa Rica is mostly enhanced by the political stability that dominates in the country and the high level of education provided by its government. The improvement of telecommunication and insurance sectors in Costa Rica was established by the country signing in a trade agreement with CAFTA that happened in 2009. This measure further caused an overall shift in the country’s GDP, indicating some raises and reductions in economic output. The main service sector that the country provides and earns significant revenue from is the tourism sector. Earlier, the country had a negative credit rating, but after some time it shifted to positive credit rating. As a result of the transition of credit rating, the country experienced a decrease in FDI operations by raising the interest volatility rate. Foreign remittances and FDI greatly promotes the GDP of Costa Rica. Therefore, the labour force in Costa Rica is divided relatively high across services offered in the country.

Transportation and Telecommunication

The Valle Central is the hub of transportation of Costa Rican hub. The added highways in Costa Rica reduce the travel time between Costa Rica and other countries, thus enhancing trade to traverse easily and quick. The railroads also facilitate the transportation of trade products to reach their destinations faster and cheaply. This pattern has also affected the foreign direct investments positively as it is the majority of operation on a small scale. There is also the Inter-American Highway that connects Costa Rica with its neighbour countries. These highways enable the country to handle containerized cargos getting in and out of the country. There is also an international airport located in the country that acts as a gateway to many countries and the side of the Pacific ocean, which mostly offer local services and majorly in the tourism sector. Therefore, the transportation and telecommunication network in Costa Rica promotes trade in the country.

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