Group 3 pg.

“No existen los fracasos - sólo

experiencias y sus reacciones a ellas."

(“There are no failures- only experiences and

reactions to them.”

- Tom Krause)

By: Group 3

Tekeisha Busby

Cameron Kazimierczak

Chris Evans

Melissa Desrochers

Xiaoyi Wu
 Group 3 pg.2

Table of Contents
Introduction:

History of Marshalls………………………………………………Pg. 3

Our Perspective……………………………………………………Pg. 3

Costa Rica:

Short History………………………………………………………Pg. 4-5

Economy……………………………………………………………Pg. 5-6

Type of Business…………………………………………………...Pg. 6-8

Legal Framework………………………………………………….Pg. 8-10

Business Protocols…………………………………………………Pg. 10-12

El Salvador:

Short History………………………………………………………Pg. 13-14

Economy……………………………………………………………Pg. 14-15

Type of Business…………………………………………………...Pg. 15-17

Legal Framework………………………………………………….Pg. 17-19

Business Protocols…………………………………………………Pg. 19-20

Highlights:

Pros and Cons……………………………………………………...Pg. 21

Decision:

Conclusion……….…………………………………………………Pg. 22

S.W.O.T. Analysis...……………………………………………….Pg. 22-25

Works Cited:

Collaborative Sources……………………………………………..Pg. 26-27

 Group 3 pg.3

I. Introduction

History of Marshalls

Traces in history indicate that the company which started the trendy store known

as Marshalls began in 1919, by the Max and Morris brothers. By the mid-seventies, it was

turned into a chain of stores known as TJX. The TJX Company owns a variety of stores

ranging from A.J. Wright, TJ Maxx, Home Goods, and BJ Wholesalers. In 1995, the TJX

Company merged with Marshalls. After becoming a part of the TJX Company, Marshalls

was known as the second largest off-price retailer in the U.S. In addition the merger

resulted in the company operating more than a thousand stores worldwide. (TJX).

Our Perspective

As acting executives of the TJX Company, we have decided to expand a branch

of our company to countries in Central America. The branch we have chosen is Marshalls

Inc. We chose it because it offers brand names clothes for cheap prices and due to the

current economic situation now consumers are spending less money on expensive items

and more money on cheaper items. With Marshalls pre-existing influential background

on the fashion industry, this will boost revenue (TJX).

The two countries we have our sights set on are El Salvador and Costa Rica. The

only way to come to a conclusion about where to expand our company to is to figure out

which country offers the most favorable business opportunity and why. (TJX).
 Group 3 pg.4

II. Costa Rica

A) Before deciding on the country we want to choose to open Marshalls in, we

needed to obtain histories of each country. The first country we researched was Costa

Rica. The first task was to compare the obvious aspects of each country. Through

research we obtained information about the location, government, currency and the

society today.

• Location

Costa Rica is a located in Central America, bordering the Caribbean Sea and the

North Pacific Ocean. It lies between Nicaragua and Panama and is about the size of West

Virginia. Costa Rica is roughly thirty square kilometers bigger than El Salvador. Costa

Rica, also known as the republic of Costa Rica, has a population of four million and the

urban population accounts for sixty three percent. The official language of Costa Rica is

Spanish and its secondary language is English. Costa Rica’s population consists of ninety

four percent white, which includes mestizo, three percent black, one percent Amerindian,

one percent Chinese, and one percent other. Based on these facts we consider it to be a

diverse population. (CIA).

• Government and Currency

Costa Ricans follow a democratic republic government. Their legal system is

based on a Spanish civil law system. Costa Rica’s currency has not yet been converted to

U.S. currency. Costa Rican colones, or CRC, per U.S. dollar is five hundred thirty point

forty one. (CIA).

• Society Today
 Group 3 pg.5

Costa Rica has many natural hazards such as earthquakes and hurricanes. Also the

country endures frequent flooding, landslides, and volcano eruptions. The population

rated as an intermediate risk for major infectious diseases in 2009. The diseases the

population may suffer from consist of bacterial diarrhea and the Dengue Fever. Their

infrastructure is rated as low-intermediate due to its lack of technology but has efficient

travel alternatives. Their unemployment rate is over four percent, which is preferred over

El Salvador’s six percent. The low unemployment rate justifies the country’s sixteen

percent of the population under the poverty line. (CIA).

B) The overall economy of Costa Rica is in a relatively stable state. In the current

conditions of business, Costa Rica is an upper middle income country. The US already

does a fair amount of business with Costa Rica; we are their main trading partner. If

Costa Rica wants to do business with us, the United States supports direct foreign

investment.

• Current Conditions Relative to Business

The people of Costa Rica have an upper-middle income out of four point five

million people. The GDP per capita has been recorded at five thousand and eight hundred

dollars as of 2007. It is the most stable of the democracies in Latin America. Some Costa

Rica citizens have disposable income, which only allows them to go out and spend it. In

addition, Costa Rica has strong public institutions and has had peaceful transitions of

power since 1949. Therefore we would not run into any conflicts with their government.

This would allow us not to worry about a corrupt government interfering with our

business. (The World).

• The US Doing Business in Costa Rica

 Group 3 pg.6

Doing business in Costa Rica would be pretty easy. Costa Rica would always

welcome U.S. businesses in their country because the U.S. is their main trading partner

for both buying and selling local products. Costa Ricans have no cultural influences or

prohibitions on the way business is conducted. The country’s infrastructure consists of

well developed electricity, communication, and transportation. Even the water, electric,

and gas is publicly owned. (Guide).

• Costa Rica Doing Business in the U.S.

The United States positively supports foreign direct investment. If you wanted to

do business in the United States you would need to know the primary spoken language,

which is English. They would also need to learn the laws and proper business etiquette of

our country. Since the infrastructure is in great shape, they would not have a problem

finding a way to communicate, or a way of transportation. (The World).

C) It is usually difficult to start a business in another country that has an entirely

different background and business environment. To consider what business type a

company should use to operate coincides with what business type fits into that specific

country. As executives we need to find the differentiation between American and Costa

Rican business type. There are a plethora of things to consider when deciding what

deciding what type of business could be implemented. They include the type of

management to be used, the red tape that should be address beforehand, the social

responsibilities that need to be fulfilled and the environmental issues we should take into

account.

• Type of Business
 Group 3 pg.7

Our company is going to set up a foreign subsidiary to handle sales in Costa Rica.

Hiring local citizens of Costa Rica is a goal we have in mind. The type of management

required for Costa Rica is a permissive democratic style of management, which means

the executives will make partial decisions for the company. This gives the employees

leeway in carrying out their work duties. Due to the fact that Costa Rica has long

emphasized the development of democracy and respect for human rights, when managing

the company we would need to provide a democratic environment and give employees

flexibilities to arrange their work. Since people there lay much emphasis on human rights

we need to respect the government leaders, flexible class lines, and educational

opportunities that may concern management. (CIA).

• Social Responsibility

We would like to show our respect for human rights by empowering local

employees and trying to fully improve their skills in retailing. When considering the

placement of the store, we will strive not to damage their beautiful environment and

fertile land. Raising their GDP and providing job opportunities are some of our goals

when operating our business in Costa Rica.

• Red Tape

As executives we will pay attention to the wages and expenses because the laws

tightly pressure employers. There are always different taxes and employer fees coming

seemingly every month (CIA). We also should find a legal representative to overlook our

business activities. A lawyer is necessary since there are a variety of legal requirements,

documents, and steps to complete in Costa Rica in order to operate a business. We will

hire some experienced interpreters to avoid any cultural miscommunication. Costa Ricans
 Group 3 pg.8

are accustomed to large shopping centers and malls. There are currently five large

department stores and countless small and medium-sized family-owned firms that

compete with the larger retailers. As a company we will focus on the concept of customer

service in order to establish long-term relationships with our consumers. We will avoid

hurting Costa Rica’s environmental climate and produced bilateral tensions when making

our own investment in the Costa Rican market.

• Environmental Issues

While operating a business in Costa Rica we will save as much energy as possible

because Costa Rica lacks sources of fossil fuels. We will strive not to damage the

beautiful environment in Costa Rica because it is a tourist country.

D) The hiring of employees is very important in Costa Rica. Mostly it is

important because it focuses on the rights of the employee, the benefits, and the

incentives for the employees of that company. The company must reward benefits to

employees and maintain a happy atmosphere for future employees. These benefits

include retirement, Social Security, disability, and workman’s compensation to allow the

employees to return to the company. Costa Rica also provides stock options that

companies can use to give incentives to each employee so the most competent work will

be produced. These work patterns help Costa Rica remain a middle-class country.

• Hiring/Terminating Employees

Hiring potential employees in Costa Rica is more difficult because the employer

must compose a fixed-term contract to develop the amount of time the employee needs to

work. The fixed-term contract duration has a maximum of twelve months with renewals

(Employing Workers). When an employee is terminated without reason, the employee

 Group 3 pg.9

receives a month’s salary, two weeks paid vacation, and a Christmas bonus equal to

twelve percent of the employee’s annual salary to compensate for terminating the

position. If an employee is terminated with reason, the employee receives two weeks paid

vacation and a Christmas bonus equal to twelve percent of the employee’s annual salary.

These actions give the employee the benefits that he or she would have received if the job

were not terminated. (Guide).

• Employee/Employer Rights

Each employee is rewarded either a wage or a salary based on the company’s

decision. Employees work forty-eight hours per week, eight hours per day. The employer

has the right to increase the work hours up to nine hours a day if the Ministry of Labor in

Costa Rica states that the job is not detrimental to the employee’s wellbeing. The

employee must receive one day off during the week according to Costa Rican law, only

six workdays are permitted in a single work week. Employees working at night are

required to work six hours per night and thirty-six hours per week. (Setting).

• Stock Options

There are stock options available for employers to reward employees within the

salary of the employee. The stocks are paid for in withholding taxes that are not given

deductions or credits. When the company is rewarding stocks to employees, the minimum

capital stock is ten-thousand CRC for the company. This minimum is then rewarded to

the employees based on the capital stock to give the employees an incentive to work hard.

(Setting).

• Employee Benefits
 Group 3 pg.10

Companies in Costa Rica are required to pay employees twenty-three percent of

the total amount of the payroll in benefits. Certain benefits involved are retirement,

Social Security, workman’s compensation, and disability. Ten percent of their salary pays

for these benefits. Other benefits included are during holidays. The employee receives

double overtime for the work completed for every fifty hours of work and two weeks

paid vacation is rewarded to the employee. A Christmas bonus is rewarded to every

employee in the company and women employees are rewarded a four-month maternity

leave. (Setting).

E) Before you can begin working in Costa Rica there are legal requirements or

business protocols that confront a U.S citizen such as age, work permits, visas, and

cultural concerns related to business etiquette.

• Age

In Costa Rica there is not a set age for when one can begin working. Usually kids

start working between the ages five and seventeen. Costa Rica is considering furthering

weakening its child labor protection laws through a bill called the "Bill for the Promotion

of Child Labor”, which promotes child labor by awarding a series of benefits to

companies that incorporate children into the permitted contractual modalities. These

types of initiatives could be counterproductive and encourage the acceptance of child

labor in the commercial and economic system.

• Work Permits

In Costa Rica all immigrants must obtain a work permit before they start working.

Before obtaining a work permit employees must first get a residency permit, which takes
 Group 3 pg.11

two to three months. Work permits are valid for one year and are renewed annually.

(Costa Rica Visa).

• Visas

In Costa Rica all immigrants are required to have visas three months after arrival.

Some requirements you need for getting a visa are:

1) A passport with more than one picture.

2) The visa application.

3) A request letter from the Costa Rican government stating that your application

was approved.

4) A colored picture.

5) A round trip ticket.

6) A company letter stating why you are taking this trip.

7) Proof of legal status in the United States.

8) Proof of solid economic status.

9) A twenty-dollar refundable fee that is wired from your bank account. (Costa Rica

Visa).

• Cultural Concerns

When coming to Costa Rica there are some cultural concerns that must be noted.

Some culture concerns that you must consider is meeting, greeting, and eye contact.

Some things you have to consider are to arrive on time to meetings. Also, they appreciate

having a small talk before getting down to business. Greeting is similar to the American

society. It is a traditional hand shake, this applies to women too. Eye contact is real

important to Costa Rican society. You must be able to look the person you’re
 Group 3 pg.12

communicating with in the eye. Lastly, when speaking to elders respect is most

important. (Costa Rica Business)

 Group 3 pg.13

III. El Salvador

A) Before deciding on which country we want to choose to operate Marshalls in,

we needed to obtain both histories of each country. The second country we researched

was El Salvador. The first task is to compare the obvious aspects of each country.

Through research we obtained information about the location, government, currency and

the society today.

• Location

El Salvador is a located in Central America, bordering the North Pacific Ocean.

In contrast to Costa Rica, El Salvador is about the size of Massachusetts and its bordering

countries are Honduras and Guatemala. El Salvador, also known as the Republic of El

Salvador, has a population of over seven million and an urban population of sixty one

percent. In comparison to Costa Rica, El Salvador’s official language is Spanish but

secondary language is Nahua, which is mostly used by the Amerindians. Its population is

ninety percent mestizo, nine percent white and one percent Amerindian. (CIA).

• Government and Currency

In contrast to Costa Ricans, Salvadorians follow a Republic government structure,

which is based on civil and Roman law with traces of common law. El Salvador

converted to the U.S. currency in 2001, unlike Costa Rica. (CIA).

• Society Today

El Salvador is also called the Land of Volcanoes. The country frequently suffers

from destructive earthquakes and hurricanes. The population in contrast to Costa Rica

was rated at a high risk for major infectious diseases in 2009. Such diseases include

bacterial diarrhea, Hepatitis A, Typhoid Fever, which are food or waterborne diseases.
 Group 3 pg.14

Dengue Fever, which is a vector borne disease and Leptospirosis, which is water contact

disease. For the same reasons as Costa Rica, El Salvador can be rated low-intermediate

when referring to its infrastructure. Unfortunately, the country has an unemployment rate

of over six percent which in comparison to the world is ranked eighty. This would

correspond to the fact that over thirty percent of its population is below the poverty line.

(CIA).

B) El Salvador’s economy is not very strong. The current condition of business

in this country is a low-middle class income. The United States is El Salvador’s main

trading partner, so they would not have a problem with one of our companies coming into

their country. El Salvador could do business in the United States, but they would need to

conduct business slightly different, due to the different business etiquette (Guide).

• Current Conditions Relative to Business

El Salvador’s business conditions are underprivileged. The country’s citizens have

a low-middle income. Half of the country’s population lives in poverty. The leftist

government they recently elected is destroying the economic growth of the country. The

country is sixty-seventh out of one hundred seventy-nine countries in Transparency

International Corruptions Perceptions Index as of 2007. Most of the labor force is in

services and agriculture. (The World).

• The U.S. Doing Business in El Salvador

The United States relationship with El Salvador is respectable. We are their main

trading partner. The official language of the country is Spanish, and it is the language

mainly spoken. Operating a business in El Salvador would increase excessive fees for

translators. Due to their different business etiquette, operating a business in this country
 Group 3 pg.15

would be more difficult. Mostly because we would need to train our employees on El

Salvador’s business etiquette before open a business over there. (The World)

• El Salvador Doing Business in the U.S.

El Salvador would need to come to the United States with a translator or be fluent

with the language themselves to conduct business in the U.S. Since most of them speak

Spanish, it would only add complications to the process. The United States is already El

Salvador’s main trading partner, meaning that their businesses are valued in the U.S. Our

business etiquette is slightly different here, which would force them to learn it. The big

issue with our different business conduct is treating females with the same respect as

males because they place females below males. In the U.S. that is unacceptable. (Nicole)

C) It is usually difficult to start a business in another country that has an entirely

different background and business environment. To consider what business type a

company should use to operate coincides with what business type fits into that specific

country properly. As executives we should find the differentiation between American and

El Salvadorian business type. There are a plethora of things to consider when deciding

what deciding what type of business could be implemented. They include the type of

management to be used, the red tape we should address beforehand, the social

responsibilities we need to fulfill and the environmental issues we should take into

account.

• Type of Business:

Our company would like to set up foreign subsidiary to handle sales in El

Salvador. In that case, we would hire local citizens in El Salvador. The type of

management required for El Salvador is an autocratic style of management, which means

 Group 3 pg.16

the executives make all decisions for the company. Salvadorian business is hierarchical.

Job functions, roles, and responsibilities should be well-defined and respected (Setting).

This is because in El Salvador each person has a very distinct role within the organization

and maintaining that role helps to keep order. People there believe that their supervisors

are decisive and even somewhat dictatorial.

• Social Responsibility

In order for our company to operate our business in El Salvador we will have to

comply with international standards for the reduction of poverty and the improvement of

living conditions (Setting). Firstly, we would need to provide more job opportunities to

the unemployed. Since we will need employees such as marketers, shop assistants,

human resource managers and so on both participating parties will benefit. Those people

cannot only speak Spanish but they must have clear ideas about what Salvadorians want.

Secondly, when we make profits we will certainly contribute to the government revenues,

which can result in benefits to society and improvement in economy. Thirdly, we can

bring a new lifestyle and fashion to people in El Salvador, so that they can be exposed to

more choices in clothing. Lastly, we will provide charitable contributions to the local

educational system which can provide people with more education opportunities and

prepare them for future contributions to society.

• Red Tape

We will need to find a legal representative. A lawyer is necessary since there are a

variety of legal requirements, documents, and steps to complete in order to operate a

business in El Salvador. We should hire some experienced interpreters to avoid any

cultural miscommunication. We should reinforce the importance of the agree-upon

 Group 3 pg.17

deadlines and how that may affect the rest of organization in order to maintain a positive

relationship within the company. Lastly, we should always have the price of the product

either on the packaging or in a visible place.

• Environmental Issues

As a company we need to concentrate on air pollution controls and energy

conservation equipment. Making every effort to use as small amount of energy as

possible, for instance taking advantage of the abundant hydropower and geothermal

power would bring us great success. The company would need to try our best to recycle

every possible used material, especially paper because large amounts of paper used in El

Salvador are imported.

D) El Salvador has many employee benefits and rights that occur within the

country. When looking to start a business there are certain aspects that need to be

considered involving the process of hiring employee for the company. Employees that are

hired are given a fixed-term contract that has no duration, allowing no time restraint on

the company’s projects. There are also certain rights that an employee has in the

company and the employer is obligated to follow them. Some employers are given the

option of giving stocks to the business partners in the company, but not to any of the

employees. The employees receive pay for their work, but El Salvador being a country in

poverty, doesn’t receive a significant amount of money. Not many benefits are provided

in a country that is in poverty because the companies can’t afford the payment for the

benefits as well.

• Hiring/Terminating Employees
 Group 3 pg.18

Hiring new employees in El Salvador is partially difficult. The country has a

fixed-term contract, but there is not maximum duration limit allowing employees to work

freely with no limit. When an employee is terminated, there is no need for the company

to inform a third party of the termination. (Employing).

• Employee/Employer Rights

Newly hired employees start a minimum wage of 1,260 colones. The employees

are given a choice of two shifts, day or night. The day shift is giving the employee forty-

four hours per week, while the night shift is giving the employee thirty-nine hours per

week. The employee is also given the opportunity for overtime, which is double what the

employee makes regularly. The employee also receives a wage or a salary depending on

the company. (Setting).

• Stock Options

There are stock options in El Salvador that the company has the option of giving

incentives to partners for outstanding work. The stocks would be distributed the same

way as shareholders distribute the percentage to each partner. Each partner will receive

stocks at a certain percent to keep the atmosphere of the company encouraging so the

employees will be happy. The partners only receive the stock options, not the employees,

keeping the stocks within the company’s executives. (Company)

• Employee Benefits

El Salvador is a country that does not have a high education. The employee may

receive an education from the company to help the employee build skills for the job
 Group 3 pg.19

(Setting). The paid annual vacation that an employee receives is eleven days and there are

restrictions on weekly holidays providing time off for the employees (Employing).

E) There are requirements or business protocols that confront a U.S citizen

working in El Salvador. Some legal requirements are age, work permits, visas, and

cultural concerns.

• Age

There is no real legal age for when kids start to work. Usually kids tend to start

working between the ages of five and seventeen just like Costa Rica, but it depends on

which low social class their family is considered.

• Work Permits

In El Salvador all immigrants must get a work permit before they start to work.

Not only the immigrants need working permits but their spouses and children under

twenty-one, also need a permit. Before obtaining a work permit employees must first get

a residency permit, which takes two to three months. Work permits are valid for one year

and can be renewed annually. It usually takes six months before receiving your permit.

(El Salvador)

• Visas

In El Salvador, all immigrants are required to have visas three months after

arrival. The requirements needed to obtain a visa in El Salvador are the same as Costa

Rica. (El Salvador)

• Cultural Concerns

There are some culture concerns you must consider before coming to El Salvador.

Some concerns you need to look into are meeting, greetings, and eye contact. When
 Group 3 pg.20

meeting in El Salvador you are supposed to show up thirty to sixty minutes early or it is

considered disrespectful. Also you must let your host start and end the conversation.

When greeting man to man, traditional hand shaking that must take place. With woman to

woman, it is also a hand shake, but formally both nod heads in acknowledgement. With

woman to man, men wait for women to extend their hands first. Eye contact is expected

during conversations, but in some situations it is known as a threat. (Nicole)

 Group 3 pg.21

IV. Highlights

Pros and Cons

After comparing and contrasting Costa Rica and El Salvador, we have observed

the pros and cons of both countries. In favor of Costa Rica, there are four point five

million people with an annual income of fifty-eight hundred. This would account for the

amount of money spent per family within the country that relates to revenue. Making

brand name clothes affordable would only increase our sales and profits. Also the tropical

climate within Costa Rica aids in the attraction of tourists, which in turn would also boost

our sales and profits.

In favor of El Salvador, there are seven point two million people with an annual

income of sixty-two hundred, which would increase revenue, but unfortunately most of

the population lives in poverty. Since El Salvador has converted to U.S. currency, it

would make profit transition easier. The climate in El Salvador is the same as Costa Rica,

but there are natural hazards and diseases that plague El Salvador, that in turn would hurt

our business. Also in El Salvador women are not able to climb the corporate ladder,

which is disagreed with in U.S. business etiquette.

 Group 3 pg.22

V. Decision

Conclusion

We have come to the decision of expanding our company to Costa Rica. We are

planning to make a long-term investment in this company. Based on our research we

these are the reasons why we chose Costa Rica:

1) More profitable over El Salvador.

2) Easy to abide by business etiquette because it is the same as the U.S. Meaning

we would be faced with few cultural issues as managers.

3) We would excel more as an off-price retailer.

4) Since Costa Rica is a tourist attraction it would increase our revenue.

5) Their government is the same as the U.S., which would lead to fewer mistakes

with government issues.

6) Less risk of putting U.S. employees in danger with natural hazards and

infectious diseases.

S.W.O.T Analysis

• Strengths

1) Costa Rica is a very popular tourist location because of the tropical weather

and beautiful landmarks. Developing a business in Costa Rica would be an appropriate

decision because the amount of consumers that may purchase a product. Also, consumers
 Group 3 pg.23

that are on vacation are more likely going to spend money on products that are from

Costa Rica. (Guide)

2) The Costa Rican locals are well-educated resulting in less training options for

the employers (CIA). A well-educated employee will benefit the company because the

employee will have the knowledge to hold a conversation with the customers and also,

have the ability to correctly do his or her job without the need to be trained. This will also

help the company because the employee will be capable of reading and writing helping

with the shipping and production of the products within the company.

3) Upper-middle income country is also very important for a company to consider

because the country that is wealthy will benefit the employer and employee (CIA). The

company may reward the employees with benefits and incentives for hard work because

the country is wealthy and attracts potential consumers. Allowing for the company to

reward the hard-working employees and also receive an income because of the tourist

locations.

4) Costa Rica is a bilingual country allowing consumers and sales associates to

develop a relationship without having a language barrier (CIA). This will also benefit the

company because the employees will be capable of understanding the employers. The

Costa Ricans are taught to speak both Spanish and English allowing for many individuals

to be understood.

• Weaknesses

1) Inflation rates cannot decrease in Costa Rica because there are many issues that

are involved with lower inflation rates. Certain issues that will occur are the rising

commodity import prices affecting the country because the import prices will be so high,
 Group 3 pg.24

the country will not be capable of receiving imports. Also, there are also labor market

rigidities that affect the country with the lower inflation rates. This is because price is

controlled when paying employees because of the lower inflation rates. The amount of

payment the employee would receive would be inflexible. (CIA).

2) Nicaraguans are immigrating to Costa Rica because of the employment

opportunities in the country. There are roughly around three hundred thousand to five

hundred thousand Nicaraguans in Costa Rica that are either legal immigrants or are

illegal. They are affecting the opportunity for Costa Ricans to become employed because

of the amount of immigrants that are hired. This causes problems for businesses because

the Costa Ricans aren’t receiving employment opportunities because of the amount of

Nicaraguans that are immigrating to Costa Rica to work. (CIA).

• Opportunities

1) Costa Rica allows for anyone to purchase land in the country regarding housing

and business purposes (Guide). This provides an opportunity because the company can

purchase land to build and start the company in Costa Rica.

2) Seasonal weather is a major factor in having sales for the company because of

the weather changes. The typical weather that is associated with the country is tropical,

but there is a rainy season and a dry season. Depending on when the tourists come to

Costa Rica, there might be a weather change causing the tourists to have products that are

not appropriate for the weather. The company will be selling the products that are

appropriate for the weather, developing in higher sales. (CIA).

• Threats
 Group 3 pg.25

1) Colones, the Costa Rican currency per U.S. dollar are 530.41 developing in the

company not profiting as much money as the company would in the United States (CIA).

The company would be risking not gaining enough profit to keep the company running.

2) Costa Rica is a tropical area, resulting in a variety of natural disasters that can

affect the company (CIA). When a natural disaster occurs, the building structure might be

damaged; the company would lose profits to fix the damages that might be involved.

Also, if tourists know there will most likely be a natural disaster, they can cancel their

vacations, which would also lose the company money because there wouldn’t be tourists

to buy the products from the company. Also the tropical weather affects our product

inventory because we would have to sell products that are appropriate for the weather of

Costa Rica.

3) There are many diseases in Costa Rica because of the tropical environment

providing a breeding ground for diseases to stay within the country. These diseases might

affect the company because employees may become diagnosed with a disease and the

company will have to pay disability if the employee cannot work. Also, if the employees

are infected with diseases, there is a possibility that the consumers that are in the store

may become infected with the diseases. There are three different types of diseases that

are within Costa Rica that the company has to keep an eye on: food, waterborne, and

vector-borne to keep the diseases under control within the company. (CIA).
 Group 3 pg.26

Works Cited

Central Intelligence Agency. "The World Factbook." Cia.gov. Central Intelligence

Agency. Web. 29 Oct. 2009.

"Company Incorporation Services in El Salvador.” Gold Service. Web. 25 Oct. 2009.

Costaricaretirement.com. "Legal." Costaricaretirement.com, 2007. Web. Oct.-Nov. 2009.

Costa Rica Visa, Embassy Requirements, Travel Application Form,Visitor, Tourist,

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USA, ESL, Spanish, Italian, Study Abroad Programs, TEFL Courses, Business

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 Group 3 pg.27

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Group 3 pg.28