Module 4: ASSESSING THE SOCIAL-CULTURAL ENVIRONMENT

Demographic Trends Costa Rica’s demographic data is very encouraging. Costa Rica has not suffered any major domestic political violence since 1948. There are no indigenous or external movements likely to produce political or social instability. This stunning nation is known worldwide for its inspiring motto: “Pura Vida!”, which means ‘pure life’ in Spanish. Everything about its relaxed lifestyle and vibrant landscape is a testament to this pleasant slogan. The rich territory distances over 19,560 square miles yet it accounts for a total of 6 percent of the planets total biodiversity. According to the last census of Costa Rica (2011) the population of Costa Rica was 4,301,712 with a male population of 2,106,188 and a female population of 2,195,524. The age percentages of the nation are as follows: Under the age of 5 8.8%, age 5 to 12 15%, age 13 to 1710%, age 18 to 24 13.6%, age 25 to 59 44.3%, and age 60 and older8.4%. According to the UNDP (United Nations Development Program), in 2010 the life expectancy at birth for Costa Ricans was 79.3 years. The Costa Rican labor force is relatively well educated compared to other countries in Central America. The rapid growth of Costa Rica’s service and tourism sectors has stimulated demand for English-language speakers and prompted the Costa Rican Government to declare English language and computer literacy to be a national priority at all levels of education. (StateDepartment, 2011)

Cultural Analysis
The Costa Rican population consists of mostly whites and mestizos (a mix of whites and indigenous people). There are also important amounts of African descendants in the Caribbean coast, and their customs form a colorful and lively part of the country’s culture. “Ticos” are educated people, still they are very laid back and live by the popular credo of “ pura vida”, which literally translates into pure life. . The official language spoken in Costa Rica is Costa Rican Spanish. Some native languages are still spoken in indigenous reservations. A Creole-English language, Jamaican patois is spoken along the Caribbean coast. About 10.7% of Costa Rica's adult population (18 or older) also speaks English, 0.7% French, and 0.3% speaks Portuguese or German as a second language. (VacationCity, 2013)

Social Institutions
90% of the country is Catholic; they practice a moderate Catholicism. Since colonial times, the Catholic Institution hasn't had a strong impact either politically or culturally. Most Costa Rican Catholics see their religion more as a tradition than as a practice or even a faith. , Costa Rican society is comprised mainly by a middle-class, which causes the impression of class and social equality. (CostaRica.Net, 2012)
Informal Trade Barriers
Traditions are shaped by gender differences and the "machismo" system. Men and women are expected to act differently from each other, and to respect their roles. A large proportion of Costa Rican women are professionals and hold important positions in both businesses and the government, but they still retain some traits that are traditional and conservative. (CostaRica.Net, 2012)

Action Plan Real estate agents will be hired locally to try to take advantage of their knowledge of the local customs and culture. We believe that by hiring locals we are not only able to market to foreingners but the local population as well. This will also enable us to use their prior experience in the modus operandi of the real estate business in the nation.

Module 5: ASSESSING THE POLITICAL LEGAL ENVIRONMENT
(Leonardo Gonzalez)
Government and Politics Costa Rica is a democratic republic that uses the Roman civil law system rather than common law. The fundamental law is the country’s Political Constitution of 1949, which grants the unicameral legislature a particularly strong role. The civil and commercial codes govern commercial transactions. The courts are independent, and their authority is respected. The roles of public prosecutor and government attorney are distinct: the Chief Prosecuting Attorney or Attorney General (“Fiscal General”) operates a semi-autonomous department within the judicial branch while the government attorney or State Litigator (“Procurador General”) works within the Ministry of Justice and Peace in the Executive branch. Judgments of foreign courts may be accepted and enforced in Costa Rica through the exequatur process. The Constitution specifically prohibits discriminatory treatment of foreign nationals. Costa Rica’s investment climate is generally favorable and has been for many years. Consequently, foreign direct investment is high and has been a significant contributor to Costa Rica’s economic growth. Nevertheless, the country's legal and cultural environment continues to present stumbling blocks to investors. (StateDepartment, 2011)

Formal Trade Barriers
The judicial system largely defends contracts, but use caution when making investments in sectors reserved or protected by the constitution or by laws for public operation. Investments in state-protected sectors under concession mechanisms can be especially complicated due to frequent challenges in the constitutional court of contracts permitting private participation in state enterprise activities. Also, independent government groups can dispense permits or prerequisites that may go against the decisions of other independent agencies, causing significant project delays. Invasion and occupation of private property by squatters, who are often organized and sometimes violent, occurs in Costa Rica. The Costa Rican police and judicial system have at times failed to deter or to peacefully resolve such invasions. It is not uncommon for squatters to return to the parcels of land from which they have been evicted, requiring expensive and potentially dangerous vigilance over the land. Costa Rican laws, regulations and practices are generally transparent and foster competition, except in the sectors controlled by a state monopoly, where competition is explicitly excluded. Tax, labor, health and safety laws are not seen as interfering with investment decisions. When applying environmental regulations, the Costa Rican organization that reviews environmental impact statements has been slow in issuing its findings, causing delays for investors in completing projects. (StateDepartment, 2011)

Promoting Global Business
The Overseas Private Investment Corporation (OPIC) offers both financing and insurance coverage against expropriation, war, revolution, insurrection and inconvertibility for eligible U.S. investors in Costa Rica. OPIC can provide insurance for U.S. investors, contractors, exporters and financial institutions. Financing is available for overseas investments that are wholly owned by U.S. companies or that are joint ventures in which the U.S. firm is a participant. OPIC holds a diversified portfolio of more than 300 clients. In Costa Rica, OPIC’s portfolio exposure in 2009 totaled USD 184 million. The portfolio consists of projects ranging from electrical generation to home building to the manufacture of consumer products. Costa Rica, together with El Salvador, Guatemala, Honduras, Nicaragua, and the Dominican Republic, is a signatory to the U.S. – Central America – Dominican Republic Free Trade Agreement (CAFTA-DR). Costa Rica is the last country for which the treaty entered into force (EIF), on January 1, 2009. (StateDepartment, 2011)

Tax Implication

Our business will be 100% foreign owned, we will meet all our tax requirements by hiring a local accountant that will counsel us on how to meet all the legal requirements to operate in Costa Rica. We will make sure that all our employees are hired under a contract that will meet all legal requirements established in the nation for the protection of the workers.

Works Cited
CostaRica.Net. (2012). Special Packages. Retrieved 02 05, 2013, from Culture In Costa Rica: http://www.costarica.net/features/culture.htm
StateDepartment. (2011). 2011 Investment Climate Statement - Costa Rica. Retrieved 02 5, 2013, from BUREAU OF ECONOMIC, ENERGY AND BUSINESS AFFAIRS: http://www.state.gov/e/eb/rls/othr/ics/2011/157262.htm
VacationCity. (2013). Vacation City. Retrieved 02 05, 2013, from Costa Rica: http://www.vacationcity.com/information/culture/