Pestel Costa Rica

Topics: Costa Rica, Central America, Nicaragua Pages: 5 (774 words) Published: October 22, 2011
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PESTEL Analysis Costa Rica

Political Analysis

• Costa Rica has emphasized strongly in the development of democracy and respect for human rights.

• Costa Rica lacks armed forces therefore they are free of military infringement.

• Costa Rican law protects the formation of contracts.

• Costa Rican law protects Copyrights, Trade Marks, Encrypted Program-Carrying Satellite Signals, Industrial Designs, Patents, Geographical Indication, Trade regulations & tariffs.

• The US is Costa Rica’s main trading partner

• Anti-trust laws are enforced in Costa Rica to maintain fairness between businesses. (Central America Data, 2008)

• Costa Rica has no official pricing rules.

• Individuals and businesses living in Costa Rica are obliged to pay income tax only on income derived from sources within the country.

• Minimum wage in Costa Rica ranges from 107,883 Costa Rican colones a month for domestic employees to 397,665 colones for university graduates.

• The workweek is 6 days.

• A 60% pension in the last 240 months in mandatory after 62 years.

Economic Analysis

• Costa Rica is part of U.S.-Central America Free Trade Agreement (U.S.-CAFTA) and TLC which means Free Trade Agreement.

• A big advantage of Costa Rica is its relationship with the US and the fact the Costa Rica is the US most important trade partner.

• Currency: Costa Rica Colon (CRC).

• 1 US dollar is equivalent to 504.84 colones.

• Property taxes are only 0.25 %

• GDP (2010): $38.27 billion.

• GDP PPP (2009 est.): $48.19 billion.

• Inflation (2010 est.): 6.9%.

• Real growth rate (2010 est.): 3.6%.

• Per capita income: (2009) $6,900; (2010 est., PPP) $10,569.

• Unemployment (2010 est.): 6.7%.

Social Analysis

• Population: 4,579,000

• 94% are white and mestizos, 3% are African origin, 1% Amerindians, 1% Chinese, and 1% other.

• Religion: Roman Catholic 76.3%, Evangelical Protestant 13.7%, other 4.8%, none 3.2%.

• Costa Rica is a community of North American (US American and Canadian) and Australian retirees.

• Languages: Spanish, with a south western Caribbean Creole dialect of English spoken around the Limon area.

• Education: Years compulsory--9. Attendance--99% grades 1-6; 71% grades 7-9. Literacy--96%.

• Health: Infant mortality rate - 9.45/1,000. Life expectancy - men 74.61 yrs., women 79.94 yrs.

• Education is Costa Rica is rich due to the fact that there are no armed forces and the money was spent in education instead of an army.

• Drinking water Households 94%

• Population with access to public health. 95%

Technological Analysis

• Since the approval of CAFTA (Central American Free Trade Agreement ) in 2007 Costa Rica’s cell phone technology evolved from being only TDMA (oldest cell phone technology) to GSM AND 3G.

• In the software area of ​​the Costa Rica has more than 100 companies, of which more than 60% have export experience.

• Better productions in the industry with the use of the technologies.

• Using technology data and high optical communications investment the countries is focused to reduce the government offices presence and increase the services by internet.

Environmental Analysis

• high levels of biological diversity with some 12,000 species of plants, 1,239 species of butterflies, 838 species of birds, 440 species of reptiles and amphibians, and 232 species of mammals.

• In 1995, the government presented a plan to protect 18 percent of the country in national parks and another 13 percent in privately owned preserves.

• Some parks now have restrictions on the number of...
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