Canada VS Costa Rica

Thursday, March 5 th, 2009 Kristen Sperduti & Stephanie Pellegrini Mr. Schoenhardt BBB 4M

Table of Contents Introduction………………………………………………..4-5 GDP………………………………………………………….6 GDP per Capita……………………………………………..7 Unemployment Rate……………………………………….8 Infant Mortality Rate………………………………………..9 Population………………………………… Population Growth Rate………………………………….11 Inflation Rate…………………………………… Key Industries……………………………………………..13 Currency Value………………………………… Age Structure………………………………………………15 Summary…………………………………………………...16 Conclusion…………………………………………………17 Works Cited………………………………………………..18

Introduction The Cirque du Soleil, meaning ‘circus of the sun’, originated in 1984 in Quebec, starting with a group of 20 street performers. Since then, Cirque du Soleil has become one of the world’s largest entertainment organizations, employing over people from over 40 countries around the globe. It has been viewed by more than 90 million people in 200 different cities worldwide. They perform approximately 20 shows a year and have received countless impressive awards. Their mission is “To invoke the imagination, provoke the senses, and evoke the emotions of people around the world”. Each performance tells its own unique story, deriving from different cultures around the world. Every show incorporates the use of live music, theatre, and lighting to captivate the audience. There are no curtains, multiple props, and every act includes the talent of flexibility, leaving the spectators completely awestruck after every show.

Intro Cont’d Costa Rica is a country located in Central America, consisting primarily of Spanish ethnicity. Costa Rica means ‘rich coast’, as it has a $1.9 billion per year tourism industry and is the most visited nation in the Central American region. Costa Rica will be compared to Canada according to GDP, GDP per capita, unemployment rates, infant mortality rate, population, population growth rate, inflation rate, exports, imports, HOUSEHOLD INCOME, education ( educated people will be more willing to spend money, is high class show = ppl with higher income), disposable income

GDP Description of feature In CanadaIn Costa RicaSignificance to the two countries Why is the information pertinent to the expansion of the Cirque The total market value of all the goods and services produced within the borders of a nation during a specified period of time $1.336 trillion$49.73 billion Canada has a significantly higher GDP than Costa Rica, meaning that they have a strong, healthy economy, resulting in a better standard of living. Relatively speaking, it means that ultimately Canada is a wealthier nation than Costa Rica. According to these facts, it appears as though it would be more beneficial for Cirque du Soleil to establish a permanent location in Canada. This is because Canada is a wealthier nation and has the ability to support the company better.

GDP per capita Description of Feature In Canada (PPP) In Costa Rica (PPP) Significance to the two countries Why is the information pertinent to the expansion of the Cirque GDP of a nation divided by population $40, 200$11, 900 Canada has a higher GDP per capita, meaning that on average, every person makes $ more than the average Costa Rican. This means that Canadians are able to afford more luxuries than Costa Ricans. This information shows that once again, Cirque would benefit from situating in Canada rather than Costa Rica, because the average Canadian makes enough money to indulge in luxuries such as entertainment. Therefore, they are more likely to be able to afford tickets to the shows. Costa Ricans may not be able to afford tickets.

Unemployment Rate Description of Feature In CanadaIn Costa RicaSignificance to the two countries Why is the information pertinent to the expansion of the Cirque The number of people who are unemployed in an area, the percentage of the total labour force 6.1%5.6% Costa Rica has a lower unemployment rate than Canada, meaning that a higher percentage of the total labour force are employed. A higher percentage of people in Costa Rica have jobs; however, based on previous knowledge, we know that they are paid less money, therefore they do not necessarily have more disposable income. This information illustrates that because a higher percentage of the labour force in Costa Rica are employed, Cirque du Soleil stands a higher chance of being successful at this location. This is because with more people working, entertainment will be in higher demand

Infant Mortality Rate Description of Feature In CanadaIn Costa RicaSignificance to the two countries Why is the information pertinent to the expansion of the Cirque The amount of infant deaths per 1000 live births Costa Rica has a higher infant mortality rate than Canada, which signifies that their health care systems and availability of doctors is not as efficient as Canada. This also represents the wealth of each nation and the population’s ability to afford the required services. Because Canada has a lower infant mortality rate, Cirque du Soleil would benefit from locating in Canada, rather than Costa Rica, because this means it has a more developed economy and therefore the population has more disposable income.

Population Description of Feature In CanadaIn Costa RicaSignificance to the two countries Why is the information pertinent to the expansion of the Cirque The total number of people who inhabit an area, region, or country 33, 212, 6964, 195, 914 Canada has a significantly larger population than Costa Rica, meaning that there are more people living there. A larger population means larger audiences and more ticket sales because there are more people to attract. Canada appears to be the better of the two countries to establish a permanent show because there are more people to watch them.

Population Growth Rate Description of Feature In CanadaIn Costa RicaSignificance to the two countries Why is the information pertinent to the expansion of the Cirque The change in population over time 0.83%1.388% Costa Rica has a higher population growth rate than Canada. This means the in the future, its population is continuously increasing at a faster rate than Canada is. Costa Rica has a faster expanding population, meaning that in the future there will be more people to buy tickets to Cirque shows. A continuous increase in population potentially means a continuous increase in ticket sales.

Inflation Rate Description of Feature In CanadaIn Costa RicaSignificance to the two countries Why is the information pertinent to the expansion of the Cirque The percentage increase in the price of goods and services usually annually 3%13.4% Costa Rica has a substantially larger inflation rate than Canada. This means that the cost of products and services increases, and there is economic unrest which forecasts recessionary times to come. Based on this information, people living in Costa Rica will have less disposable income to spend on entertainment, as the cost of necessities will go up. It would be more beneficial for Cirque du Soleil to locate in Canada because it has a more stable economy.

Key Industries Description of Feature In CanadaIn Costa RicaSignificance to the two countries Why is the information pertinent to the expansion of the Cirque Major industries that are important to a countries’ economy Automotive, agriculture, manufacturing Tourism, agriculture, electronics Costa Rica’s number one key industry is tourism, versus Canada’s which is automotive. Although Canada has many key industries, tourism is not one of them. Tourism is mainly for entertainment, and tourists are looking to spend money and enjoy themselves. Cirque du Soleil would attract a lot of tourists and be successful in Costa Rica because of their success in that industry.

Currency Value Description of Feature In Canada (per 1 US $) In Costa Rica (per 1 US $) Significance to the two countries Why is the information pertinent to the expansion of the Cirque The value of a nation’s money relative to the US dollar dollars colones Canadian currency is worth more than Costa Rican currency, which means that American money will go farther in Costa Rica than in Canada. Most of the tourists that go to Costa Rica are Americans and have American currency. This means they will have more money to spend in Costa Rica for their own personal enjoyment. This means they can afford tickets to the Cirque du Soleil.

Age Structure Description of Feature In CanadaIn Costa RicaSignificance to the two countries Why is the information pertinent to the expansion of the Cirque Percentage of population between certain age categories 0-14 yrs: 16.3% yrs: 68.8% 65+ yrs: 14.9% 0-14 yrs: 27.2% 15-64yrs: 66.8% 65+ yrs: 6% The population of people between years of age is higher in Canada than in Costa Rica. This is significant because the key demographics of the show are for ages The highest percentage of people in the audience of Cirque shows is between the ages of 18 and 49. Therefore, there is a higher percentage of people in the target age range in Canada than in Costa Rica.

Summary After comparing the key economic factors of Canada and Costa Rica, it can be concluded that both countries have a high standard of living, and each have their own unique strengths and weaknesses. Costa Rica is a less wealthy nation, and on average, individuals living in Costa Rica are less wealthy than those in Canada. A higher percentage of people in Costa Rica are employed; however, it can be assumed that because the GDP per capita is lower than Canada’s, Costa Rican’s are getting paid less, and therefore have less disposable income. The infant mortality rate is higher in Costa Rica, therefore we can conclude that this is a less developed nation, and less services are available to them, in comparison to Canada. Canada’s population is larger than Costa Rica’s; however, Canada’s land mass is also much larger, meaning Costa Rica is more densely populated. Costa Rica has a larger population growth rate than Canada, which means that they are increasing at a faster rate and will continue to expand in the future. Inflation rates are also higher in Costa Rica, meaning that there is a higher chance of a future recession because the prices of goods and services are not stable. This also means that people in Costa Rica have less disposable income because the price of necessities also increases. One of the most important key industries in Costa Rica is tourism, which links directly to entertainment, the key niche market that Cirque du Soleil is appealing towards. Canada’s key industry is automotive. When comparing to the cost of one US dollar, Costa Rica has a lower currency value than Canada does. This means that American money from tourists ‘goes further’ in Costa Rica. This disposable income is most often spent on entertainment. Lastly, a higher percentage of Canadians are within the key demographics that Cirque du Soleil targets, meaning that Cirque du Soleil would be more popular in Canada than in Costa Rica.

Conclusion After extensive analysis of both Canada and Costa Rica, we have decided that it would be beneficial for Cirque du Soleil to establish a touring show in Costa Rica. This is because on average, most people that would attend these shows would be tourists who are looking to spend their disposable income on entertainment while on vacation. Costa Rica is a country centered around tourism, and Cirque du Soleil would be successful because there would be high demand for entertainment. We have decided not to place a permanent show in Costa Rica because we feel that the economy and population cannot support it themselves.

Works Cited "About Cirque du Soleil." Cirque du Soleil Cirque du Soleil. 5 Mar "Canada." The World Factbook. 24 Feb Central Intelligence Agency. 5 Mar "Costa Rica." The World Factbook. 24 Feb Central Intelligence Agency. 5 Mar 2009.