Land of choice

The first filter of conditions: The conditions are imposed on the least corrupt countries in the continent. This is counted from CPI index number 5. 1. Costs of the material a. South America b. Middle-East c. Oceania d. Africa 2. Low corruption a. Middle-East i. Saudi-Arabia ii. Oman iii. VAE b. Oceania i. Australia ii. New-Zeeland c. Africa i. Botswana ii. South- Africa iii. Namibia iv. South- Africa d. South America i. Uruguay ii. Chili iii. Costa Rica

6687 Sea mile 6153 Sea mile 6199 Sea mile 10766 Sea mile 11765 Sea mile No shore, have to past by South Africa by boat 1000 Sea mile 5707 Sea mile 6142 Sea mile 6221 Sea mile 7122 Sea mile 4881 Sea mile

3. Sea route distance: its mentioned behind corruption 4. Production cost: a. Middle-East 1000 US$/Ton Aluminum b. Oceania 1870 US$/Ton Aluminum c. Africa 2000 US$/Ton Aluminum d. South America 1100 US$/Ton Aluminum 5. Reliability a. Saudi-Arabia b. Oman c. VAE d. Australia e. New-Zeeland f. Botswana g. Namibia h. South-Africa i. Uruguay j. Chili k. Costa Rica Export transactions 2 2 2,3 1 1 2 2,3 3 2,3 1 2/3 2 1/3 Direct investments 2,3 2 2/3 2,3 1 1 2 2,3 2 2/3 1,7 1 2/3 2

6. BNP a. b. c. d. e. f. g. h. i. j. k.

Saudi-Arabia Oman VAE Australia New-Zeeland Botswana Namibia South-Africa Uruguay Chili Costa Rica

24200 25600 49600 41000 27700 14000 6900 10700 13700 15400 11300

DEPEST-analyze
The second filter is according the DEPEST-analyze. The analysis will give a more throughout representation from the country. The result form the first filter is Costa Rica. This is an indication that Costa Rica is an viable country to outsource. In this chapter the DEPEST-analyze will be performed. D Demographic According the statistic demographic of Costa Rica the population is 4,579,000 (for 2009). The indigenous people of Costa Rica make up less than 2% of the total population the bigger part consists of descendants of Spanish settlers. The literacy rate is over 90%, making it one of the most educated societies in Central America. The capital city of Costa Rica is San Jose . The official language of Costa Rica is Spanish. Due an high literacy rate it is possible to understand each other better especially in terms of documents and assignments. As second language the people of Costa Rica can also speak English which is very important because one of our second language is also English. Some statistics of Costa Rica Population density 89.6 hab/sq km Average age Total: 27.5 years Male: 27.1 Female: 28 years (2009 est.) Population growth rate 1.5% (20052010) Birth rate 17.8 births/1,000 population (20052010) Death rate 4.1 deaths/1,000 population (20052010) Net migration rate 1.3 migrant(s)/1,000 population (20052010) Net migration (thousands) 84,000 migrant(s) (20052010) Sex ratio At birth: 1.05 male(s)/female Under 15 years: 1.05 male(s)/female 15-64 years: 1.02 male(s)/female 65 years and over: 0.86 male(s) Total population: 1.02 male(s)/female (2009 est.) Infant mortality rate 9.9 deaths/1,000 live births (20052010) Under five mortality rate 11.4/1,000 live births (20052010) Life expectancy at birth Total population: 78.8 years Male: 76.5 years Female: 81.2 years (20052010) Total fertility rate 2.13 children born/woman (20052010)

HIV/AIDS Adult prevalence rate: 0.4% (2007) People living with HIV/AIDS: 9,700 (2007) Deaths: fewer than 200 (2007) Nationality Noun: Costa Rican(s) Adjective: Costa Rican Ethnic groups White, includes mestizos 94% Black/Afro-Caribbean 3% Amerindian 1% Chinese 1% Other 1% Religions Roman Catholic 76.3%, Evangelical 13.7%, Jehovah's Witnesses 1.3%, other Protestant 0.7%, other 4.8%, none 3.2% Languages Spanish (official), English (as a second language) Literacy Definition: age 15 and over can read and write Total population: 94.9% (2007/2008) E Ecology On the corruption chart you can see that Costa Rica ranks 43 out of 180 with grade 5 which is pretty good. 43 Costa Rica 5.3 5 4.7 - 5.9 Table corruption The chart here under says that the politic is very trustworthy and stable. Commercial is stable. Transferring money, investing is according this chart quite safe.

Table risk

According to UNICEF the percentage of children working in Costa Rica has decreased significantly for 10.9% to 8.7% as 2007.

P-Politics The political system of Costa Rica is based on a democratic republic with a president. Besides the president chief of state and head of government there are 2 vice-president and a 15-member cabinet. Its been said that Costa Rica is the most stable political system in Central America. Doing business there all salaried employees must be registered with Social Security. The employer pays 25% of the total salary amount. To cover the employee for medical care, hospitalization, other medical costs 9% will be conducted and also 3% of that amount is a contribution to a savings and pension fund. In Costa Rica therere free trade zones for import-export. Companies that are located in such zones can operate with duty-free. Though 25% above of production may not be sold on the local market. If an amount is for local sales, taxes and duties applies. Companies that want to put a new investment in fixed assets must be at least 150,000 dollar worth but for companies outside the free zone areas 2,000,000 dollar. Tax exemptions include import duties, capital tax (10 years), 100% income tax exemption for 8 years then 50% for the next 4 years, sales tax, export tax, selective consumption tax, property tax, real estate transfer tax, and withholding tax on payments made outside of Costa Rica. Income tax exemptions of up to 12 years are available if the company is located in an area of lesser relative growth. A plus from it, simplified customs clearance procedures. This allows temporary duty free admission of goods to be processed in Costa Rica for export to countries outside Central America and Mexico. There are tax benefits and streamlined customs procedures. Knowing this will help a lot now we have to act strategically so that we can export en import or outsource the parts more cheaply. .

Sources: Production expenses aluminum http://www.carbontrust.co.uk/policy-legislation/international-carbonflows/aluminium/Pages/7.aspx#container http://siteresources.worldbank.org/EXTOGMC/Resources/3369291266963339030/eifd13_wa_aluminum.pdf http://www.igcc.org.au/resources/Documents/Emissions_Trading___the_Aluminium_Industry_2005 .pdf Corruption chart http://www.transparency.org/content/download/55725/890310/CPI_report_ForWeb.pdf Risk diagram http://www.ondd.be/WebONDD/Website.nsf/AllWeb/Rapport+Annuel/$File/TABEL.pdf http://www.ondd.be/WebONDD/Website.nsf/AllWeb/Costa+Rica?OpenDocument&Disp=1&Languag e=nl Distance in sea miles http://www.searates.com/reference/portdistance/ BNP http://www.indexmundi.com/g/r.aspx?v=67&l=nl

Demographic http://www.123independenceday.com/costa-rica/demography.html CIA world fact book UN Business/politics http://www.therealcostarica.com/costa_rica_business/costa_rica_labor_law.html Ecology http://www.nationmaster.com/country/cs-costa-rica/env-environment http://www.handelswijzer.com/mediawiki/index.php/Costa_Rica#Investeringen_in_Costa_Rica