INDEX NUMBER: 9015419

NAME: BOAFO ENOCH TWUM

PROGRAM: INTERNATIONAL BUSINESS
COUNTRY: COSTA RICA

QUESTION 1
Costa Rica borders Nicaragua to the north by 194
miles (313 kilometers), and Panama to the south by
348 kilometers.

With a 200-nautical-mile exclusive economic zone

(370.4 km; 230.2 mi) and 12-nautical-mile territorial
sea, Costa Rica claims a total area of 574,725 km2
(221,903 sq mi) (22.2 km; 13.8 mi).

Land use: 4.8% of it is arable. 6.66% of crops are

permanent. Other: 88.54%.
Costa Rica's territorial waters are a valuable resource
for the country's economy. Here are five specific
areas of economic importance:

1. Fisheries: Costa Rica's waters are home to a

diverse range of fish species, including tuna,
shrimp, mahi-mahi, and snapper, among others.
The fishing industry is a significant contributor
to Costa Rica's economy, with exports of fresh
and frozen fish products to markets around the
world.
2. Tourism: Costa Rica's waters are a popular
destination for tourists interested in activities
such as surfing, scuba diving, and snorkeling.
The country's coastline is dotted with world-
renowned beaches and marine reserves, which
attract visitors from all over the world.

3. Shipping and transportation: Costa Rica's

territorial waters are an important shipping route
for vessels traveling between North and South
America. The country's ports are also critical for
the import and export of goods and products.

4. Renewable energy: Costa Rica has been making

strides in renewable energy, particularly in
harnessing the power of its rivers for
hydroelectric power. Hydropower is produced
from Lake Arenal, the largest lake in Costa Rica.
Total renewable water resources is 112.4 km3.
The country's waters also have the potential for
wave and tidal energy, which could contribute to
its renewable energy goals.

5. Marine research and conservation: Costa Rica's

waters are home to a wide variety of marine life,
 including whales, dolphins, sea turtles, and
sharks. The country has established several
marine reserves and protected areas to conserve
its marine ecosystems, and research in these
areas is important for understanding and
protecting these resources. Additionally, the
country's waters are also home to significant
archaeological sites, which provide insight into
its pre-Columbian history.

QUESTION 2
Given Costa Rica’s strategic position, it has a strong
shipping sector. Costa Rica has seven major seaports:
1. PORT OF CALDERA
The country's top port, Caldera Port, which manages
more than half of its international maritime traffic, is
located close to the Gulf of Nicoya on Costa Rica's
Pacific Coast. The port city, a small hamlet near
various tourist destinations on the Nicoya peninsula,
is located in the Puntarenas province. The port has an
industrial complex that can house cruise liners and
freight ships.
The port has four wharves with a combined quay
length of 590 meters, and its land area is 240,000
square meters. Whereas Berth 2 is a container berth
of 150 m and capable of carrying cargo carriers with
a draft of 10 m, Berth 1 is 210 m long and has an 11
m draft for handling bulk containers. The third wharf
is 130 meters long and can accommodate general
cargo ships with a maximum draft of 7.5 meters. On
the fourth berth, which has a grain conveyor belt
system, bulk grain is loaded.

2. PORT OF LIMON
The largest port in Costa Rica, Puerto Limon, is
located on the country's northeastern Caribbean coast
and is officially known as the Hernon Garron Salazar
Terminal. The Gulf of Mexico, the Panama Canal,
and the US's southern coast are all strategically
located nearby. Bananas, oranges, and other citrus
fruits, vegetables, coffee, and textiles are among the
main exports. Iron, cardboard, fertilizers, chemical
goods, gasoline, and petroleum are all imported.
Around 2,490 vessels, 9,930,000 tonnes of cargo,
840,000 TEU, and 200,000 people are handled
annually at the port of Limon.

3. PORT OF MOIN
The Moin harbour, an auxiliary facility of Limon
port, is located off Costa Rica's Atlantic coast on an
artificial island. It has a tanker jetty, an oil refinery,
and a container terminal. With the arrival of
Mediterranean Shipping Company, a supplier of
logistics and shipping services, it underwent
renovation in 2018. The Firm established a direct call
from the Moin port terminal to develop new cargo
lanes between Costa Rica and North Europe. Due to
this, the port has been able to handle larger container
ships and increased cargo quantities during the last
two years
.
4. PORT OF PUNTARENAS
Puntarenas, a stunning cruise port, welcomes
passenger ships and provides thrilling shore
activities. It has a 560 m long pier with a 12.5 m
depth and is adjacent to the Caldera port. It is a
compact terminal near to the city center with modest
amenities. The port town is an important economic
hub but is quickly becoming a famous tourist
destination known for its beaches, national parks and
natural islands offering a wonderful weekend retreat.

5. PORT OF QUEPOS
On Costa Rica's Pacific coast is the protected Quepos
port. It includes facilities for exporting seafood and
bananas and was built as a cruise port to promote
tourism in the country's western region. The port
city, which takes its name from the local Quepoa
Indians, is well-known for its nightlife, dining
options, and cafes.
Sport fishing is best done at Quepos Port. Marlin,
sailfish, and tuna can be caught by tourists using
fishing boats they rent. The Playa Espadilla beach,
which is perfect for swimming, sunbathing, or simply
unwinding, is only a few miles from the port.

6. PORT OF GILFITO
Only a five-hour journey separates Golfito from Juan
Santamaria Airport on the Pacific Coast's Golfo
Dulce's eastern shore. This modest facility can
accommodate small ships and barges transporting
woodchips on its single pier, which is separated into
two 13 m deep berths. It is simple to fit vessels with
a 195 m LOA and 30 m beam.

7. TERMINAL PUNTA MORALES

Just 9 nautical miles separate this port terminal from
the cruise port of Puntarenas, which is located at the
southern tip of the Golfo de Morales in the county of
Chomes. Each year, more than 200 ships that carry
100,000 tonnes of cargo call on the port. A T-head
jetty, a loading platform, and two fender dolphins
totaling 71 meters make up this little port. There is a
160 m mooring dolphin on it, and there are also
mooring buoys 300 m out from the jetty. It imports
alcohol and molasses, exports fuel, and imports raw
sugar
.
Advantages:
 1. Strategic Location: Costa Rica's location
between North and South America makes it an
ideal hub for trade between the two continents.

2. Easy Access to Major Markets: The country's

proximity to major markets such as the United
States and Mexico, as well as emerging markets
in South America, provides easy access to a wide
range of trading partners.
3. Modern Infrastructure: Both seaports have
modern infrastructure, including deepwater
berths, cranes, and container handling
equipment, which allows for efficient loading
and unloading of goods.

4. Efficient Customs Procedures: The country has

streamlined customs procedures that allow for
easy clearance of goods, reducing the time and
cost of doing business.

Disadvantages:

1. Vulnerability to Natural Disasters: Costa Rica is

prone to natural disasters such as earthquakes
and hurricanes, which can disrupt port operations
and lead to significant losses.
 2. Limited Capacity: While both seaports have
modern infrastructure, their capacity is limited.
This can result in congestion, delays, and higher
costs.

3. Dependence on Road Transportation: Most of

the goods transported through the seaports are
transported by road, which can be subject to
traffic congestion and delays.

4. Competition from Regional Seaports: Costa Rica

faces competition from other seaports in the
region, such as those in Panama and Colombia,
which offer similar advantages and are
expanding their capacity.

QUESTION 3

1. Central America Free Trade Agreement

(CAFTA-DR) - Costa Rica ratified the CAFTA-
DR agreement on January 25, 2008. This
agreement is a free trade agreement between the
United States, Costa Rica, El Salvador,
Guatemala, Honduras, Nicaragua, and the
Dominican Republic.
2. Trans-Pacific Partnership (TPP) - Costa Rica
signed the TPP agreement on February 4, 2016.
This agreement is a trade agreement between 12
countries, including Canada, Japan, Mexico, and
the United States, that seeks to liberalize trade
and investment in the Asia-Pacific region.

3. Pacific Alliance - Costa Rica joined the Pacific

Alliance as an observer member in July 2013.
The Pacific Alliance is a regional integration
initiative that seeks to promote free trade,
investment, and cooperation among its member
countries, which include Chile, Colombia,
Mexico, and Peru
.
4. Association of Caribbean States (ACS) - Costa
Rica is a member of the ACS, which is an
organization that seeks to promote economic,
social, and cultural cooperation among its
member countries in the Caribbean region. Costa
Rica ratified the ACS charter on June 24, 1994
.
5. Central American Integration System (SICA) -
Costa Rica is a member of SICA, which is a
regional integration initiative that seeks to
promote economic, social, and political
integration among the countries of Central
 America. Costa Rica ratified the SICA charter on
December 13, 1991.

QUESTION 4
Costa Rica's five leading exports in terms of volume
and value are:

1. Medical instruments: This is Costa Rica's top

export, accounting for 27.6% of the country's
total exports in 2020, with a total value of
US$3.7 billion.

2. Integrated circuits: This category includes

electronic microcircuits, microassemblies, and
parts of electronic integrated circuits, and
accounted for 18.7% of Costa Rica's exports in
2020, with a total value of US$2.5 billion.

3. Pineapples: Costa Rica is one of the world's

largest producers and exporters of pineapples,
and this fruit accounted for 6.9% of the country's
exports in 2020, with a total value of US$920
million.
 4. Bananas: Costa Rica is also a major producer
and exporter of bananas, which accounted for
4.4% of the country's exports in 2020, with a
total value of US$591 million.

5. Coffee: Coffee is an important export for Costa

Rica, accounting for 3.3% of the country's
exports in 2020, with a total value of US$443
million.

Costa Rica's top five export destinations are:

1. United States: Costa Rica's largest export market

is the United States, which accounted for 47.2%
of the country's total exports in 2020.

2. Mexico: Mexico is Costa Rica's second-largest

export market, accounting for 6.1% of the
country's total exports in 2020.

3. China: China is Costa Rica's third-largest export

market, accounting for 5.5% of the country's
total exports in 2020.

4. Netherlands: The Netherlands is Costa Rica's

fourth-largest export market, accounting for
4.1% of the country's total exports in 2020.
 5. Belgium: Belgium is Costa Rica's fifth-largest
export market, accounting for 3.6% of the
country's total exports in 2020.

QUESTION 5
Costa Rica's five leading imports in terms of volume
and value are:

1. Refined Petroleum: Costa Rica's largest import

by far is refined petroleum, which accounts for
around 12% of total imports by value. In 2020,
Costa Rica imported $1.7 billion worth of
refined petroleum.

2. Cars: Costa Rica imported $800 million worth of

cars in 2020, making it the country's second-
largest import by value. This represents around
5% of total imports.

3. Telephones: Telephones and related equipment

are Costa Rica's third-largest import by value,
accounting for around 3.5% of total imports. In
2020, Costa Rica imported $541 million worth of
telephones.

4. Medicaments: Medicaments, including both

human and veterinary medicines, are Costa
 Rica's fourth-largest import by value, accounting
for around 3.5% of total imports. In 2020, Costa
Rica imported $539 million worth of
medicaments.

5. Electrical machinery: Electrical machinery and

equipment are Costa Rica's fifth-largest import
by value, accounting for around 3% of total
imports. In 2020, Costa Rica imported $461
million worth of electrical machinery.

Costa Rica's top five import sources in 2020, based

on value, were:

1. United States: The United States is Costa Rica's

largest import partner, accounting for around
30% of total imports. In 2020, Costa Rica
imported $4.3 billion worth of goods from the
United States.

2. China: China is Costa Rica's second-largest

import partner, accounting for around 12% of
total imports. In 2020, Costa Rica imported $1.7
billion worth of goods from China.

3. Mexico: Mexico is Costa Rica's third-largest

import partner, accounting for around 8% of total
 imports. In 2020, Costa Rica imported $1.2
billion worth of goods from Mexico.

4. Japan: Japan is Costa Rica's fourth-largest

import partner, accounting for around 3.5% of
total imports. In 2020, Costa Rica imported $495
million worth of goods from Japan.

5. Germany: Germany is Costa Rica's fifth-largest

import partner, accounting for around 2.5% of
total imports. In 2020, Costa Rica imported $360
million worth of goods from Germany.

QUESTION 6
Costa Rica has had several disputes with its
neighboring countries in the region, but one of the
most significant disputes in recent times has been
with Nicaragua over their shared border in the
northern part of the country. The dispute has been
ongoing for several years, and both countries have
made claims over a territory known as Isla Calero or
Isla Portillos, located on the Caribbean coast.
The dispute began in 2010 when Nicaragua began
dredging a river that forms part of the border
between the two countries, which led to the flooding
of the disputed territory. Costa Rica filed a complaint
with the International Court of Justice (ICJ),
claiming that Nicaragua had violated its sovereignty
and caused environmental damage to the region.
Nicaragua, on the other hand, argued that it had the
right to carry out the dredging operations and that the
area in question belonged to them.

In 2015, the ICJ ruled in favor of Costa Rica,

ordering Nicaragua to pay compensation for the
environmental damage caused and to stop all activity
in the disputed territory. However, tensions between
the two countries have continued, and there have
been reports of further incursions by Nicaraguan
forces into Costa Rican territory.

Another significant dispute that Costa Rica has had

with its neighbors in the region is over the use of the
San Juan River, which forms part of the border
between Costa Rica and Nicaragua. Nicaragua claims
that it has the right to navigate the river, while Costa
Rica argues that this violates its sovereignty. In 2009,
the ICJ ruled that Nicaragua had the right to navigate
the river, but it also ordered the country to
compensate Costa Rica for environmental damage
caused by its military presence in the area.

The difficulties small nations have in asserting their

sovereignty in the face of more powerful, bigger
neighbors are generally highlighted by these
conflicts. Through international mediation and
diplomacy, Costa Rica has attempted to settle these
disputes; however, the ongoing hostilities between
the two nations highlight how precarious the
situation is.

QUESTION 7
Costa Rica maintains diplomatic relationships with
most countries around the world, including its
neighbors in Central America. However, there are
several countries with which it has not developed
diplomatic relationships or has canceled them. Here
are five of them and the reasons behind their lack of
diplomatic relationships:

1. North Korea: Costa Rica does not have

diplomatic relationships with North Korea due to
the country's human rights abuses, nuclear
weapons program, and support for terrorism.

2. Iran: Costa Rica canceled diplomatic

relationships with Iran in 2010 due to concerns
over the country's nuclear program and its
support for international terrorism.

3. Taiwan: Costa Rica recognized Taiwan as an

independent country until 2007 when it switched
its recognition to China, which led to the
 severing of diplomatic relationships with
Taiwan.

4. Kosovo: Costa Rica has not recognized Kosovo

as an independent state, unlike most of its
Western European and North American allies.
This is likely due to concerns over setting a
precedent for secessionist movements.

5. Sahrawi Arab Democratic Republic: Costa Rica

has not recognized the Sahrawi Arab Democratic
Republic, a self-declared state that claims
sovereignty over Western Sahara. This is likely
due to concerns over setting a precedent for
secessionist movements and the lack of
international recognition for the Sahrawi Arab
Democratic Republic.

QUESTION 8

Costa Rica is a democratic country with a republican

system of government. The country's governance
system is divided into three branches: the executive,
legislative, and judicial branches.

Executive Branch: The President of Costa Rica is

both the head of state and government. The President
is elected for a four-year term and is limited to
serving two terms. The President appoints a cabinet
of 22 ministers who oversee various government
departments and agencies.

Legislative Branch: The legislative branch in Costa

Rica is a unicameral National Assembly or Asamblea
Legislativa. It consists of 57 members who are
elected for four-year terms. The size of the National
Assembly has remained the same since 1986. The
assembly is responsible for passing laws, approving
the national budget, and ratifying international
treaties and agreements.
In the Legislative Assembly there will be as many
fractions as political parties are represented in it. The
deputies will be considered integrated to the Fraction
of the party for which they were elected and none
may belong to more than one fraction.

Judicial Branch: The judiciary in Costa Rica is

independent and includes a Supreme Court of
Justice, which is the highest court in the country. The
Supreme Court has 22 justices who are appointed by
the Legislative Assembly for an eight-year term.
Other courts in Costa Rica include appellate courts,
circuit courts, and local courts. The country also has
a constitutional court, which has the power to review
the constitutionality of laws and government actions.
Costa Rica is geopolitically divided in 7 provinces:
San José, Alajuela, Heredia, Cartago, Puntarenas,
Guanacaste y Limón; which, at the same time, are
divided into 81 cantons.

The Costa Rican political system is generally secure

and places a high value on the rule of law and
democratic values. In order to prevent abuse of
power and uphold the system's integrity, the
government of the nation is set up with checks and
balances between the executive, legislative, and
judicial departments.