The CAFTA Report
Only about a third of smaller firms export, study says


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Only about a third of smaller firms export, study says

For The CAFTA Report

(Jan.31, 2011) Just 34 percent of the small- and medium-sized companies in Costa Rica export their products, according to a new study.

The statistic comes from José Martínez, director of the  Escuela de Administración de Empresas at the Instituto Tecnológico de Costa Rica in Cartago.

Martínez just obtained his doctorate from the Universidad de Valencia in Spain with a dissertation based on this topic.

He was interested in what factors encourage and what factors are barriers to exportation. He reported that management attitude is important, as well as the channels of distribution and information about the international market.

Of course, the characteristics of the product are key, also.
    The topic has greater relevance now that the Central American Free Trade Treaty allows Costa Rican firms to compete on equal footing in other countries. The institute, which is one of Costa Rica's public universities, said that Martínez cited the international vision of a company's executives as well as access to a data base of potential foreign customers.

Martínez also said that the company also has to be savvy in financing their exports as well as being able to compete in the international market. The exchange rate is one of the areas about which company executives must consider, he said.
The firms that do export have an average of 20 years experience, he said he found. His work was based on a sample of small- and medium-sized companies in all the country's provinces, the institute said.


Business chamber protests private group gender law

For The CAFTA  Report

(Jan. 27, 2011) The nation's business chamber has filed an appeal against a law that went into effect in December that requires equal participation of men and women on the boards of private organizations. The chamber noted that there are many organizations that are exclusively for men and exclusively for women. Plus it said the law violates the principal of free association.

The chamber, the Unión de Costarricense de Cámaras y Asociaciones del Sector Empresarial Privado, said that the law violates reason as well as treaties with the International Labour Organization.

The law specifically targets associations, unions and
     solidarista organizations which are employee benefit groups in many companies.

The law seems to have been passed and gone into effect without any publicity. It is an extension of the laws governing politics that mandate a certain number of women on the ballot for each political party.

The chamber said that the associations involved are outside of the power of the state to regulate. It said each organization can establish its own constitution and regulations.

The filing said that some organizations would have to go outside its membership to find directors of the correct gender.


Contact us here: Editor@TheCaftaReport.com



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