COMMUNICATING IN COSTA RICA

Lanier

Lanier

BUSINESS COMMUNICATION IN COSTA RICA

Prepared for John Doe

Head of International SalesABC Financials LLC

November 20, 2012

Prepared by Glenn Lanier

International SalesABC Financials LLC

Lanier

INTEROFFICE MEMORANDUM

TO: John DoeFROM: Glenn Lanier DATE: November 20, 2012SUBJECT: Requested Report on Business Communication in Costa Rica

The purpose of this report is to inform and educate ABC executives on how to properly communicate with Costa Rican business professionals.

The report will delve deeper into multiple important factors that should be observed strictly to prevent accidental offence or disruption of any progress in the business transaction. It will discuss the importance of communicating, techniques on how to correctly go about communicating, along with social and cultural norms.

Thank you for giving me the opportunity to report on this topic. I hope that this report meets your expectations and is an aid to the success of your Costa Rican business relationships.

Lanier

TABLE OF CONTENTS

EXECUTIVE SUMMARY……………………………………………………………iv

CHAPTER I. INTRODUCTION……………………………………………………… 1

Background……………………………………………………………………..1Problem…………………………………………………………………………1Purpose………………………………………………………………………… 2Scope…………………………………………………………………………... 2Limitation……………………………………………………………………… 2Research………………………………………………………………………...2Organization…………………………………………………………………… 2

CHAPTER II. CULTURAL CHARACTERISTICS OF COSTA RICA………………4

Religious Influence in Costa Rica……………………………………………... 4Cultural Mannerisms…………………………………………………………... 4Costa Rican Characteristics…………………………………………………….5

CHAPTER III. NONVERBAL CHARACTERISTICS OF COSTA RICA…………...6

Expressions……………………………………………………………………..6Personal Proximity…………………………………………………………….. 7Greetings………………………………………………………………………. 7

CHAPTER IV. VERBAL CHARACTERISTICS OF COSTA RICA………………... 9

Communication Formality……………………………………………………...9Speaking……………………………………………………………………….. 9Verbal habits…………………………………………………………………..10

CHAPTER V. BUSINESS PRACTICES IN COSTA RICA…………………………11

Business Attire………………………………………………………………...11Business Itinerary…………………………………………………………….. 11Business Negotiating………………………………………………………….12Business Faux Pas……………………………………………………………. 12

CHAPTER VI. REPORT SUMMARY……………………………………………….13

REFERENCES………………………………………………………………………..14

iii

Lanier

EXECUTIVE SUMMARY

ABC Financial LLC is a financial group that provides financing for retail properties.

Because of its credentials and pristine services, a Costa Rican company, Princeton

Properties, has requested its services. Exporting ABC’s services has never been done;

however ABC Financial LLC realized this to be a huge financial opportunity. To achieve

this goal, ABC executives must be willing to adapt to the Costa Rican business cultures

to ensure the success of its international business relationships.

This report is to inform ABC executives of the business communication

differences between the people of the United States and Costa Rica. The information

used in this report came from the Internet, books, and videos, along with the interviews of

two experienced Costa Rican business men and one American business man experienced

in Costa Rican business culture. This report includes information regarding Costa Rican

business culture, verbal and nonverbal communication techniques, and business

practices; this report excludes geology, climate, and federal laws regarding corporations.

Costa Rican natives, also called “Ticos,” are relational people. A majority of the

communication queues should be observed through nonverbal interactions, including:

expressive facial features, preferred personal proximity, and initial greeting norms. The

traditional business language is English; although, their national language is Spanish.

They often conduct business in a more informal environment, such as over meals. Most

meetings will begin with lite conversation. Typically conversation topics are of family,

personal lives, or casual interests. Ticos are typically a more relaxed culture and,

consequently, are less punctual; this lax attitude toward time is a cultural norm.

iv

Lanier

Americans need to treat Costa Rican business professionals courteously.

Imposing American standards and expectations can cause a large disconnect between

parties, and, if Americans need to improve their policies, they should state that clearly at

the beginning of a transaction. Ticos are a giving people, including in business.

Negotiations should be to benefit both parties.

To ensure a favorable business relationship with the people of Costa Rica, ABC

executives need to know proper communication and business techniques. Although the

Costa Rican business culture is similar to the American business culture, Americans need

to address the few differences. If ABC executives observe and apply the information in

this report, seamless communication and transaction with the Costa Rican business

professionals should occur.

v

Lanier

CHAPTER I

INTRODUCTION

ABC Financials LLC is a well-known financing company asked a Costa Rican company

to finance its project. ABC has never financed outside of the United States. ABC

realized that many opportunities exist outside of the states; ABC’s executives have

considered expanding their operations into Costa Rica beginning with this prospective

client.

Background

ABC Financials LLC, established in 2005, has gained market share in over 25 districts

including New York, Dallas, and Los Angeles. ABC’s credentials have roused the

interest of many clients, including Princeton Properties in Costa Rica. However, ABC

has never considered the possibility of expanding its services outside of the United States.

ABC Financials believes the company’s best interest is to include clientele outside the

United States.

Problem

Companies need to consider many obstacles when expanding internationally. A cultural

disconnect between business parties may cause unintentional conflicts. For example,

inappropriate conversational topics may be a problem. If the executives’ lack of

knowledge continues, they can expect to encounter many issues that can result in severe

consequences.

Purpose

1

Lanier

The intention of this report is to understand the Costa Rican’s business practices and

culture, along with nonverbal and verbal communication habits, so the executives may

transact business appropriately in Costa Rica. With a full understanding of Costa Rican’s

business cultures, practices, and communication techniques, the executives can

effectively market their services in Costa Rica.

Scope

This report was written explicitly for the purpose to inform the executives of the verbal

and nonverbal communication, culture, and business practice expectations accepted in the

Costa Rican business environment. This report will exclude issues pertaining to Costa

Rica’s government, climate, and geography.

Limitations

Although the information provided is second hand, all information given in this report is

of professional quality. Had the team had the chance to visit Costa Rica, the report would

have been more complete.

Research

The research team utilized information from the Internet, books, and videos. It also

interviewed two Costa Rican business men and one American business man experienced

in Costa Rican culture.

Organization

The report will first address the Costa Rican business culture and how it differs from the

American business culture. Then, the report will expand on cultural characteristics of

2

Lanier

Costa Rica. Then, the report will describe verbal and nonverbal communication

techniques used by Costa Ricans. Following, the report will educate on key business

practices used by Costa Ricans. Finally, the report will summarize the major key points.

3

Lanier

CHAPTER II

CULTURAL CHARACTERISTICS OF COSTA RICA

Christopher Columbus discovered and baptized Costa Rica as a Spanish territory during

his fourth voyage in 1502. Consequently, much of Costa Rica is influenced by the

Spanish culture. Costa Rica has since represented itself, according to the Thunderbird

International Business Review, as “… a model for Central American economies because

of its strong democratic institutions, political stability, and open economy.” (Mirchandani

335)

Religious Influence in Costa Rica

Although Costa Rica has diversified itself over the previous four hundred years, many

aspects of the Spanish culture continue to be evident in their culture. Costa Rica’s

national religion, like Spain, is Catholic. The Costa Rican government practices religious

freedom, but as observed, Catholicism is revered by many of the locals. A majority of

Costa Rican immigrants, including: Jewish, Chinese, and Africans, have maintained their

own beliefs.

Cultural Mannerisms

As John Lanier (2012) mentioned in his interview, “[Ticos] are willing to work hard with

you even if they’re not being paid.” One notable trait of the Costa Rican’s is their

determination and hard work. An equal amount of effort should be exerted on both sides

of any interaction with a Tico. Ticos are consequently recognized for being servant-like.

Receiving treatment that may be viewed as “servant-like” could be expected in casual

4

Lanier

interactions with Ticos. As mentioned later in the report, Costa Rican’s are very

relatable and personable people. Some relatable topics include: family, sports, art, music,

and other recreational topics.

Costa Rican Characteristics

A well recognize characteristic among the Ticos is integrity. This is observed regularly

in their business interactions, but it also extends into their personal interactions as well.

As mentioned by John Lanier (2012) “Their word is their bond.” What may seem as

casual agreements should be considered as a more formal agreement. Much of the Tico

culture suggests that words have stronger meanings. Ticos tend to analyze more deeply

into what was said, or what they’re saying. John Lanier (2012) also stated in his

interview that “[Ticos] are a very polite and ‘proper’ people that always exude extreme

graciousness.” One noted distinction between Costa Rican’s and Americans is that gifts

are more frequently exchanged on special occasions. Unlike in America, business gift

exchanges are encouraged.

Much of the characteristics observed in Costa Rican culture are favorable. The

Spanish historical influence has paved a way for a more giving, generous, and sensitive

culture group. If ABC executives respect and imitate the cultural and social values of

Ticos’ there will be little awkwardness.

5

Lanier

CHAPTER III

NONVERBAL CHARACTERISTICS OF COSTA RICA

Nonverbal communication has as large effect on a business interaction and can

potentially cause unwanted noise between ABC executives and those at Princeton

Properties. As mentioned to the team during an interview with John Lanier,

Costa Rica is very ‘Americanized,’ as the US is the main import/export country. There is an active Trade Agreement in effect.  For the most part, communicating with Costa Ricans, or ‘Ticos’, is the same as with ‘Gringos.’ They are a very polite and proper people and are always extremely gracious (2012).

Nonverbal communications covered in this report are expressions, personal proximity,

and greetings.

Expressions

As John Lanier stated, Costa Rican Natives, or Ticos, have adapted to an American way

of business (2012). Americans should notice the differences in gestures as Costa Ricans

will rely on the context of their nonverbal cues to help convey the message.

Posturing can convey different attitudes; Americans should consider this. For

example, hands on hips or arms crossed portray hostility. To avoid any confusion among

parties, an appropriate posture for an ABC executive would be to cross hands behind the

back or hold them in a relaxed position to the side. These slight differences speak a lot to

Ticos.

The Ticos are expressive people, often showing eccentric eye brow and hand

motions. ABC executives should appropriately match the expressions of the Ticos. In a

6

Lanier

web article, Cultural Information – Communication Styles, the author expands on the

importance of eye contact:

Eye contact means that you are being truthful. However, some people could be shy and avoid eye contact, especially those from rural areas and those who have very low level of education or are very young. In business, eye contact it is very important to show honesty (2009).

Maintaining a good standing with the Ticos is important, and the reputation of the

executives can ride on something as small as good posture or constant eye contact.

Personal Proximity

ABC executives should be aware of their proximity. One of the exceptions to John

Lanier’s earlier statement that “…Costa Ricans are very ‘Americanized’” is the distance

that Ticos prefer. Ticos are a friendly people, but, as far as “personal space” goes, they

require more than Americans.

Proxemics is the study of the comfortable distance between people while

communicating. This obviously is contextual; as far as business interactions go,

Americans should maintain a distance greater than an arm’s length to ensure a

comfortable interaction with a Tico. Ticos are independent-thinking: they value their

space and their autonomy. Breaching a Ticos’ personal space may communicate

intimacy or inferiority.

Greetings

Greetings in Costa Rica are similar to those in America. A traditional handshake is the

most common greeting. A substitute for a handshake could be the one-hand-clasp-to-

back-pat gesture. Firmly gripping the Princeton Properties executive’s hand will portray

7

Lanier

professionalism and confidence. In the case of greeting those of superiority or

subordinate position, the superior’s hand should be on top of the subordinate’s while

shaking. This will show those meeting who is in command. Americans should be aware

that too abrasive of a grip can cause an uncomfortable first impression. John Lanier

(2012) outlined an additional cultural norm for casual.

For women, you greet them with a light kiss on the cheek.  This is only once you have a casual relationship with them.  You would not do that on your initial meeting, but may on your second.

Gestures communicate; ABC executives should use gestures carefully. They should

maintain the integrity of ABC Financial by exuding honesty and confidence through the

nonverbal gestures examined in this chapter. If executives are unsure of their gestures’

tact, they should mirror the gestures of the Ticos. As the saying goes, “mimicking is the

highest form of flattery,” a truism throughout the Costa Rican culture.

8

Lanier

CHAPTER IV

VERBAL COMMUNICATION

Costa Rica, being one of the largest tourist locations, regroups with many nationalities.

This chapter is unlikely to cover all languages spoken in Costa Rica. The Costa Rican

national language is Spanish, although many dialects exist. Executives can expect to

speak English as it is the language of business. However, they must observe some of the

Costa Rican’s habits and formalities to avoid confusion or offense between transacting

business parties.

Communication Formality

Ticos are proud of their accomplishments; therefore, titles are important in business

communication. When speaking with people of seniority, executives need to place the

word Don in front of their surname. Executives should avoid using the title Senior, as

locals use it to refer to a non-educated Tico. Executives should greet Ticos with a college

degree with the title of Licenciado(a), which indicates that the individual has a

licenciatura, or degree.

Speaking

Spending extra time familiarizing with Spanish terms will go a long way to build an

executive’s reputation with the Ticos. If executives choose to speak Spanish, they should

abide by Spanish speaking formality during the first few introductory meetings. They

should use the formal conjugation, usted, if they speak Spanish. However, speaking

Spanish is likely to be optional. One term used to greet, say goodbye, or show

appreciation is Pura Vida, which literally means pure life.

9

Lanier

Verbal Habits

John Lanier (2012) stated that Ticos are “…somewhat slower paced than Americans.”

Executives should be aware that they cannot rush Ticos to get to the point of a topic.

Executives should rather be patient in awaiting a response. At the beginning of a meeting,

the executives should expect to spend at least 15 minutes having casual conversations,

showing their interest in the Ticos’ personal lives. Ticos generally avoid talking about

religion, politics, or anything that could cause an argument. Maintaining agreeable and light-

hearted conversations will provide for an easy transition.

Typically Costa Ricans communicate in an informal fashion, but only after

establishing a relationship. If the executives follow the verbal communication guidelines

described above, their communications should be without hiccups. Obviously, each

individual communicates differently, so these guidelines may be imperfect. When in doubt,

executives should mimic the Costa Ricans’ behaviors and mannerisms.

10

Lanier

CHAPTER V

BUSINESS PRACTICES IN COSTA RICA

Contrary to the nonchalance expressed in the Costa Rican culture, Costa Rican business

professionals expect a sense of formality in business interactions. Although the

executives may be more familiar with this style of business, there are still some

differences that should be observed in order to avoid offense.

Business Attire

Similar to the American standard of business attire, Costa Ricans wear dark suits and ties.

However, once a business relationship has been established, business casual is

appropriate. ABC executives should dress conservatively. Business men should dress in

a neutral colored suit, and women should wear a conservative dress suit, or knee length

skirt.

Business Itinerary

As explained in the interview with Julio Cedeno (2012), typical meetings can be expected

to last from 1 to 3 hours. Any meeting scheduled longer should allot time for a food

break. Morning meetings are to be held no earlier than 8 a.m. Lunch meetings occur

between 12:30 p.m. - 2:30 p.m. and can be held over a lite meal. Any afternoon meeting

can expect to be held between the times of 2 p.m. and 6 p.m. Dinner meetings are not out

of the ordinary and can be held between 7 p.m. and 10 p.m. Avoid going over the time

you’ve scheduled with the Tico. As reiterated by Julio Cedeno (2012), “Sharpness is not

one of our best values. Fifteen minute delays are still acceptable.” The executives must

be patient with the Ticos.

11

Lanier

Business Negotiating

John Lanier (2012) brought to the attention that “Ticos are not nearly as ‘money driven’

as most U.S. businesspeople.” Executives should keep this in mind when negotiating a

price agreement. Swinging far to either side of a negotiation can cause severe

relationship tension. Ticos may relate a monetary disagreement to being exploitive, and

lacking a favorable relationship. The executive’s prices should be well thought out and

should reflect an easily perceived benefit for both parties. Costa Rican business culture

exemplifies benefiting both parties to the fullest extent.

Business Faux Pas

Some international business casualties can be linked to simple mistakes that elsewhere

may be accepted. Some of the mistakes shared by Julio Cedeno (2012) may help in

avoiding such unfavorable results. Executives should be aware of their opinions. If not

closely monitored, they can often be perceived as imposing. As stated earlier, Ticos are

very independent and should not be unreasonably pushed to believe or share any opinion.

Meetings should not be summoned in short notice; Executives should allow for at least a

day in between planning and meeting. Being courteous of local costs; long distance calls

should only be seldom made and should be made on personal phones. Avoid using parcel

services to send goods or samples out of the country. Lastly executives should be patient

and understanding of Ticos email response time. Julio Cedeno (2012) humorously put

“[Americans] pretend that everybody uses a Blackberry or that emails should be

answered immediately.”

12

Lanier

CHAPTER V

REPORT SUMMARY

Through the research of Costa Rican culture, the executives can observe a significant

contrast to the American business culture. ABC executives can rest assured that all

differences were covered sufficiently. The executives must be aware of these differences.

If the guidelines explained through this report are exercised correctly, the executives

should move smoothly through their Costa Rican business transaction.

A majority of the communication queues should be observed through nonverbal

interactions, including: expressive facial features, preferred personal proximity, and

initial greeting norms. They often conduct business in a more informal environment,

such as over meals. Ticos are typically a more relaxed culture and, consequently, are less

punctual; this lax attitude toward time is a cultural norm. Imposing American standards

and expectations can cause a large disconnect between parties, and, if Americans need to

improve their policies, they should state that clearly at the beginning of a transaction.

The ABC executives must acknowledge all of the cultural and social differences

between Costa Rica and the United States. If ABC executives meet all points in this

report, communicating and interacting with the Ticos should be seamless.

13

Lanier

REFERENCES

Aguilera, L. (2012, October 14). Interview by G Lanier [Video Tape Recording].

Business communication in costa rica. Costa Rican Business Professional, Costa

Rica.

Cedeno, J. (2012, October 12). Interview by G Lanier [Web Based Recording]. Business

communication in costa rica. Costa Rican Business Professional, Costa Rica.

Lanier, J. (2012, October 6). Interview by G Lanier [Personal Interview]. Business

communication in costa rica. International Business Professional, Dallas, Tx.

Luecke, M. (2004, May 16). Nonverbal communication. Retrieved from

http://acad.depauw.edu/~mkfinney/teaching/Com227/culturalportfolios/

Costa_Rica/nonverbal.htm

Mirchandani, D. (2005). Doing business in costa rica. Thunderbird International

Business Review, 47(3), 335. Retrieved from

http://libproxy.library.unt.edu:7125/docview/202785817

N/A. (2009, October 15). Cultural information - costa rica. Retrieved from

http://www.intercultures.ca/cil-cai/ci-ic-eng.asp?iso=cr

Premarathne, G. (2009, October 10). Costa rica culture. Retrieved from

http://www.tourism.co.cr/costa-rica-art-and-culture/costa-rica-cultural-heritage/

costa-rica-culture.html

14