Doing Business in Costa Rica

Subject (Course): International Trade and Business in Costa Rica. Syllabus:

1. Introduction to the Republic of Costa Rica (Central America).
2. Business in San Jose
3. Costa Rican Economy.
4. International Trade of Costa Rica.
5. Foreign Direct Investment (FDI).
6. Business Opportunities:
   - Service Sector
   - Advanced Manufacturing
   - Medical Devices.
7. Case Study
   - Multinational Companies in Costa Rica.
     - Intel Costa Rica.
     - Cafe Britt.
8. Introduction to Spanish
9. Access to the Costa Rican Market
10. Business Plan for Costa Rica

Objectives of the subject “Doing Business in Costa Rica”:

1. To analyse the Costa Rican economy and foreign trade
2. To evaluate business opportunities in Costa Rica
3. To explore Costa Rica's trade relations with the student's country
4. To know Costa Rica's Free Trade Agreements (FTAs)
5. To examine the profile of Costa Rican Companies
6. To develop a business plan for the Costa Rican Market

Sample of the subject: Doing Business in Costa Rica

Subject Description (Doing Business in Costa Rica).

The Republic of Costa Rica.

1. Borders of Costa Rica: Nicaragua, Colombia, and Panama.
2. Costa Rican population is 4.9 millions of people
3. Area of Costa Rica is 51,100 square kilometres
4. The capital of Costa Rica: San José
5. Official language: Spanish
6. Costa Rica is the most politically stable country in Latin America (World Bank).
7. The Republic of Costa Rica is one of the oldest democracies in the Americas.
8. Costa Rica has no army.
9. Costa Rica gained independence from Spain in 1821
10. Religion in Costa Rica: Christianity (Catholicism: 3 million).
11. Costa Rica belongs to the Christian Civilisation - Latin American area
12. Abolition of slavery in Costa Rica: 1824
13. African Diaspora in Costa Rica: 0.1 millions of people (3% of the Costa Rican population)

The main cities in Costa Rica.

1. San Jose (Costa Rica's capital) is Latin America's fourth-largest city with better quality of life (The Economist)
2. Heredia: Global Park Free zone, Sykes, IBM, Hospira, Boston Scientific, Baxter America Services.
3. Alajuela ranks first in Costa Rica in the production of coffee and sugar cane
4. Puerto Limon is the largest port in Costa Rica

Costa Rican Economy.

1. Costa Rica (America) has positioned itself as a key destination for operations of multinational companies in a variety of industries: advanced manufacturing, medical devices, and services.
2. 200 global companies have chosen Costa Rica as an establishment location.
3. Costa Rica has a strong legal system that administers the Judicial Power, which guarantees law accordance and covers nationals, as well as foreigners within Costa Rica.
4. World Bank Study for Global Governance Indicators ranks Costa Rica in the first place within Latin America for political stability.
5. Real gross domestic product has been increasing at a compound annual growth rate of 5.3% since 1991
6. One of the most competitive destinations in Latin America for service operations
7. Costa Rica is one of the most competitive locations, above biggest economies in Latin America (Brazil, Mexico, and Chile).
8. The total foreign direct investment (FDI) inflows have grown an average 22% every year since 2000.
9. Foreign direct investment per capita = 448 USD.
10. Gross domestic product per capita of Costa Rica is seven times higher than the People's Republic of China
11. Costa Rica has become an important location for companies from the United States, as well as a strategic offshore location for European enterprises in the dollar zone, for European-based companies.
12. The services sector has been growing in the last decade, from one company in 1995, to ninety-five companies and 28,416 employees.
13. Currency: Costa Rica Colon

Companies in Costa Rica.

Intel in Costa Rica. Costa Rica is the home to Intel's only production site in Latin America. The local factory is focused on the assembly and testing of microprocessors and chipsets, product development, and customer support. Intel Costa Rica is also an international distribution centre and a strong back-office organisational function supporting several business groups including Finance, Materials, Planning, information technology, and Employee Services. Intel is placed in Heredia (San José). The facilities in La Ribera occupy 126 acres and include one manufacturing factory and one distribution centre dedicated to the assembly, testing, and distribution in the World's fastest processors.

Since the mid-1990's Café Britt thought of the International Airport in Costa Rica as a place where the traveller must find their products. Britt decided to expand internationally. The company decided to pursue international markets actively and invested in Peru, Curaçao, the Netherlands Antilles, Chile, Miami, St. Thomas, Antigua and Barbuda, and Mexico.

International Trade of Costa Rica.

1. One of the pillars of the Costa Rican economic development has been international trade liberalisation, which has allowed exports to surpass its 30% ratio of the gross domestic product in 1980 to a 50% rate (includes exports of products and services).
2. This foreign trade liberalisation has been followed by a series of structural modifications resulting in productivity growth, diversification of the economy and a higher level of investment.
3. All these modifications have translated into important social achievements. In the last twenty years poverty was reduced from 40% to less than 20%.
4. Costa Rica is the fourth high-tech exporter in the World
5. Exports of Costa Rica: 8.847 billion dollars.
6. The main Costa Rican export products: integrated circuits, medical equipment, bananas, pineapples, coffee, melons, ornamental plants, sugar, textiles, electronic components, and medical equipment.
7. The largest export markets: the United States 23.9%, the Netherlands 13.3%, China 12.9%, the United Kingdom 5%, and the United Mexican States 4.9%.
8. Imports of Costa Rica: 10.87 billion dollars.
9. Top import products: raw materials, consumer products, capital equipment, and petroleum.
10. Major Costa Rican international suppliers: the United States 42.7%, Mexico 6.9%, Venezuela 6.3%, Japan 5.4%, China 4.7%, and Brazil 4.2%.

Costa Rica's Free Trade Agreements (FTA)

1. Costa Rica has Free Trade Agreements (FTA) with China, Mexico, Chile, the European Union, the United States, and the Caribbean Community.
2. Central American Integration System (SICA)
3. Central American Common Market - Integrated with SICA -
4. Mesoamerica Project

Costa Rica is a member of:

1. Latin American and Caribbean Economic System (SELA)
2. Forum for East Asia-Latin America Cooperation
3. Inter-American Development Bank (IDB)
4. Organisation of American States (OAS)
5. Economic Commission for Latin America (ECLAC)
6. Association of Caribbean States (ACS)
7. Africa-South America Summit (ASA)
8. World Bank (WB)
9. International Monetary Fund (IMF)
10. World Trade Organisation (WTO)
11. United Nations (UN)
12. Latin American Integration Association (observer)

FTA China Costa - Rica: