Descriptive Analysis of Dominican Republic

Descriptive Analysis of Dominican Republic

The Geography of the Dominican Republic

Geographic Location

• The Dominican Republic is a country in the West Indies that is located in eastern Hispaniola.
• It is situated in the Caribbean Sea and it is one of the largest islands in the Greater Antilles chains
• The shores of the Dominican Republic are washed by the Atlantic Ocean in the Northern part and Caribbean in the Southern part.
• Santo Domingo is the country’s national capital which is located on the Southern coast.
• The country has a diverse geography that varies from verdant valleys in the tropical rain forests to semi-desert plains.
• The northern Atlantic side of the island features a wide range of tourist attractions, resorts, and hotels, particularly along the 40-mile zone that is between Cabarete and Puerto Plata.
• Santo Domingo features the main monuments such as the first hospital, first church, and first cathedral.
• The Cordillera Central is considered the highest range of mountains on the island which extends from Haiti to the south in San Cristobal.

Adjoining or Neighboring Countries

• The Dominican Republic shares its border to the West with Haiti with Puerto Rico being the next closest Island country neighboring the Dominican Island.
• It is located on Hispaniola island which is home to the Dominican Republic to the east and Haiti to the west.
• The Hispaniola Island is bordered by the Caicos Islands and Caribbean Turks to the north, Jamaica to the west, and Puerto Rico in the East.
• The country is bordered to the north by the Atlantic Ocean and to the south by the Caribbean Sea.

Main Geographical Features of Mauritius

• The Dominican Republic is mountainous in the west and central parts and is mostly dominated by extensive lowlands in the southeast.
• There are mountain ranges in the country including:
  • Cordillera Central (largest and highest range)
  • Pico Duarte (highest point in the Caribbean and in the Dominican Republic)
• The Dominican territory is made up of several offshore bays and islands.
• Has two near-shore islands with Beata situated in the southeast and Saona located in Southeast.
• The lowest point (40 meters below sea level) in the Caribbean is Lake Enriquillo which is also the largest lake in the country.
• Yaque del Norte is the largest river with several other rivers draining from the mountains and hills to the sea.

The People of the Dominican Republic

Population

• The latest population records by Worldmeter show that the current population is approximately 10,844,690.
• It is equivalent to 0.14% of the world population and ranks as 85^th amongst countries by population.
• The population density is 225 persons per Km²or 581 persons per mi²).
• The total land area is approximately 48,320 Km2 with a larger population of 84.5% living in urban areas.
• The majority of the population has descended from African slaves and their Spanish settlers.
• By population, Santo Domingo is the most populated with approximately 2,201,941 residents

The Birth Rate

• The fertility rate in the Dominican Republic is 2.37 births per woman according to 2017 records.
• In 2018, the birth rate was approximately 19.685 births per every 1000 people which was a decline by 1.19% from 2017.

Main Ethnic Groups

• The population is made up of a mixture of European ethnicity and mixed Africans with minorities of white and blacks.
• Reports show that most people have descended indirectly from the Taino people.

Religion

• 61% of the total population adheres to the Roman Catholic church which has an intense influence on the economic, political, and cultural life.
• The religious practices and beliefs are syncretic and mostly rooted in the cultural practices of the African and Spanish communities.
• 6% are Seventh-day Adventists while Methodists take 3.7% of the population.             Basilica Cathedral of Santa María la Menor

• Evangelical groups are growing in the area and represent 18% of the total population.
• Other religions including Anglicans, Muslims, Anglicans, Rastafarians, and Jehovah’s Witnesses is composed on 0.2% of the population.

Language

• The Spanish language is predominant although English has increased in popularity as a result of emigrants to the United States.
• Haitian immigrants introduce French Creole to the region.
• 85% speak Dominican Spanish and 2% speak Haitian. 1% of the population speak Samana English, 0.5% Chinese, 0.1% Japanese, and 0.1% speak Italian. 11% of the population speak other languages.

The Economy of Mauritius

Gross Domestic Product of Mauritius

• The GDP of the Dominican Republic is 85.5B according to the current US$.
• The country recorded a 7.0% growth with a growing rate of unemployment at 5.8%.

Current Economic Condition of Mauritius

• There is a mixed economy in the Dominican Republic that is based on services such as trade, telecommunications, manufacturing, finance and tourism, construction, remittances, and agriculture.
• Agricultural production including sugarcane, cacao, coffee, and tobacco, has been the economy’s mainstay until the 20^th
• Foreign factories have been established and the country has recorded one of the highest rates of economic growth in the world.
• Approximately three-fifths of the total population are below the poverty line with a high population belonging to the lower segment of farmers, itinerant merchants, landless agricultural workers, and manual laborers.
• The country has been known as an exporter of coffee, sugar, and tobacco traditionally which has now changed with the service sector taking over as the largest employer in the economy as a result of tourism, telecommunications, and free trade zones.
• The country exports at least 60% of the total exports to the United States.
• There is a high rate of income inequality with the richest receiving 40% of the GDP while half of the poor population receive below than one-fifth of the GDP.
• Since its rebound in 2010 from the global recession, the economy has been recorded amongst the fastest growing globally.
• The labor force takes 4.93million of which services take 64.7%, industry take 20.8% while agriculture takes 14.4%.

Major Exports

• Total exports in the Dominican Republic amount to $8.24B causing it to get ranked as the 96^th exporter in the world.
• The main export commodities include gold at $1.32B, rolled tobacco at $769M, low-voltage protection equipment at $775M, Knit T-shirts at $355M, and medical instruments at $535M.
• Its products are mostly exported to the United States, India, Canada, Germany, and Switzerland.

Major Imports

• The Republic’s total imports in 2018 amounted to $15B which was a reduction from $17.3B in 2013 to $15B in 2018.
• Most of its imports include petroleum at $1.59B, cars at $678M, and Petroleum gas at $645M. Others include corn at 260M and non-retail pure cotton yarn at $267M.
• Its import partners include China, the USA, Spain, Brazil, and Mexico.

Currency

• Dominican pesos (DOP) is the currency in the Dominican Republic.
• The United States-Dominican exchange rate is 1 DOP = 0.01809

Technology and Infrastructure in the Dominican Republic

The country’s infrastructure is well connected through a large road network in the country. The country has an array of public transportation that includes caro publicos, guaguas, buses, motoconchos, and metro.

• Dominican Republic has a great transportation international and domestic network.
• Tourists into the country arrive through the country’s international airports and can travel by air in the country due to the availability of aerodromes that serve domestic flights.
• Travelling is possible in the country by seaports through the Caribbean Sea to its harbours in La Romana’s and Santo Domingo.
• The country has a well-interconnected transportation network by bus, taxi, or horse carriage.
• Hitchhiking and bicycles provide alternative modes of transport.
• Buses – The country’s main private companies include Metro tours, Bavaro Express, Caribe Tours, and Terra Bus with 52 seat buses and air conditioning. Bavaro express are easily available to individuals in the Eastern Regions including Punta Cana, El Macao, and Bavaro while Terra Bus provides bus routes between Puerto Principe and Santo Domingo
• Carro Publicos – These are public taxis that operate in the same manner to Guaguas between cities, towns, and vollages.

Dominican Republic Airports

The best international airports include:

• Gregorio Luperon International Airport (Puerto Plata)
• Las Americas International Airport (Santo Domingo)
• Punta Cana International Airport (Punta Cana)
• Cibao International Airport (Santiago)
• Samana El Catey International Airport

Mauritius Seaports

The Dominican Republic has a wide array of airports including:

• Port of Santo Doingo and Palenque
• Port of Barahona and Viejo de Azua
• Port of Haina and Samana
• Port of Puerto Plata, Mazanillo, and Caucedo

Major Radio/TV stations

• The main broadcasting stations in Dominican Republic include Hay, Listin Diario, Diario Libre, and El Nacional.
• Radio stations include Rumba FM, Cadena de Noticias (CDN) Radio, and Corporacion Estatal de Radio y Television (CERTV).

Internet and Smartphone Users

• There are a total of 6.6 million users of internet as of 2017 4.5 million of whom are Facebook users.
• The country has been rising in the country with more than 74.8% of the population having access to internet in 2018 from a mere 35.5% in 2011.
• Dominican Republic is amongst the countries in the Caribbean and Latin America where most women are allowed to access internet.

Common Business Customs and Etiquettes in Dominican Republic

Customs When Dealing with Foreigners

When dealing with foreigners, one should observe meeting etiquette. Direct eye contact, welcoming smile, and handshake are standard requirements as they are considered as indications of interest. When shaking hands, one should observe appropriate greetings such as “beunos dias,” “buenas tardes” and “buenas noches,” depending on the time. Dominicans are expected to dress well and to take pride in their looks and appearances since people are often judged depending on their clothing and how they look. When meeting strangers especially in a social event, it is often considered appropriate to arrive 15 to 30 minutes. Additionally, when meeting in home residences, one is expected to understand that several generations often share the same house and thus, one should show high respect and reverence for elders.

When invited over to a meeting, one should wait until they are shown where to sit by the host or hostess as there may be a seating arrangement. In a house meeting one should observe Continental table mannerisms whereby the knife is positioned in the right with the fork on the left. One should also wait until the host invites them to eat by saying “buen provecho” or “have a good meal” as an invitation to eat. It is also considered a mannerism to keep the hand visible while eating without placing the elbows on the table. One should also leave little food on the plate after finishing eating and ensure that the fork and knife are well placed across the plate with the handles to the right and prongs facing down.

Tipping is expected in the the Dominican Republic due to the significance of the tourism industry and the low wages in the service industry. In circumstances where the service charge is not part of the bill, one is expected to tip the staff 10-15% of the total bill.

Punctuality

In Mauritius punctuality is not a critical practice but still plays an important role in the business world. It is helpful for foreigners to be punctual to meetings and activities, even if their Mauritian counterparts may be late. Since the overall culture is very laid-back, schedules are more flexible, and the atmosphere is less stressful.  In all Mauritian business transactions, hospitality and personal relationships take the central role, but elements such as punctuality and other formalities are still a substantial factor. Although punctuality does not have much importance, its significance of punctuality varies on a situational basis.

Giving and Receiving Gifts

According to the Dominican Republic culture, gifting is not recommended particularly in meetings or appointments. Professionals often view gifts as bribes that can destroy business gifts. However, gifts are acceptable in non-professional settings such as homes or social functions. When invited at dinner in Dominican home, one is expected to bring gifts such as pastries or chocolates. When gifting, one should avoid gifts that are purple and black in that they are considered sad or mourning colours. Additionally, one should open gifts immediately after receiving them.

Dealing with Women Managers

Since WWI, the role of women in society changed with most getting educated and assuming high employment positions. However, although women in Dominican Republic are highly educated, the society still maintains a macho culture in that women tend to seen as sexual objects who should take their place in cleaning and cooking although they work full time. As such, their working opportunities have become varied with low earnings even when undertaking similar tasks as their male counterparts. However, although there is a high rate of stereotyping in the country, one should treat women with respect by observing politeness and mannerisms such as warm greetings. Women should be treated without being degraded but fairly and respectfully without showing any form of discrimination.

Business Negotiations

Business managers must be familiar with business negotiation and decision-making practices. When negotiating, one should know Dominicans often prefer building relationships and harmony as opposed to winning an argument As such, it is important to avoid pressure tactics, hard selling, and mannerisms that could end in confrontation or conflicts. Dominicans are likely to become animated during negotiations, an aspect that should not be mistaken for aggression. Although there are diverse ways of doing business, Dominicans often respect hierarchy such that most decisions are made from the top management to the lower levels and can take time. When preparing for meetings, men should wear suits that are dark skinned while women should wear business dresses that are quality to indicate success and a high social status. Considering that majority of the population is conversant with English and Spanish, one should prepare brochures, business cards, plans, and price listings in one or both of these languages. Business cards should be exchanged without a formal ritual whereby one side of the card should be translated in Spanish. This side should face the recipient and should be treated with respect and should be placed in the business card to show respect for the other person.

When dealing with people from the Dominican culture, one should understand that relationships are more important that business decisions and documentations. A decision could be made after several meetings since Dominicans tend to take bureaucratic delays. Rushing the process is often considered rudeness and unnecessary aggression. It is also important to avoid sales tactics that are high pressured since Dominicans are highly skilled negotiators who tend to drive hard bargains successfully.

Business-Related Superstitions and Taboos

In business settings, unethical behaviors are often considered taboos and are deemed inappropriate for the entrepreneurial world. Appearing too bold or loud is unacceptable in business since Dominicans are fond of conserved mannerisms. It is considered a taboo to sweep business premises out from the front door in that it is believed that one tends to sweep their profits. In the front door, one should place an aloe to collect the negative energy of people visiting the business premises.

Opinion on Doing Business in the Dominican Republic

Culture Compatibility with the United States

Since 1884, the Dominican Republic has maintained diplomatic relations with the United States, an aspect that has fostered successful business interactions. The relations between the United States and the Dominican Republic is complex and solid in that the Dominican Republic serves as an essential partner in most hemispheric affairs due to its position in the Caribbean and being one of the largest economies and third-largest country in population behind Haiti and Cuba. This has also been facilitated by its proximity and bilateral trade with the United States and their cooperation in the fight against illegal migration, trafficking of persons, and illegal substances, as well as the extradition of various fugitives in the region.

Cultural compatibility between the United States and the Dominican Republic has also been facilitated by the interest of both countries to foster an economically and democratically stable country. Both nations believe in the promotion of an economically and democratically stable country, an aspect that has created cooperation tactics between them in a bid to strengthen the technical and institutional capacity of the Dominican Republic. From an ethnic perspective, both countries are highly diverse with the citizens being comprised of an array of religions, backgrounds, and ethnicities.

Although the cultures in both countries are similar in relation to diversity and vision towards the creation of an economically stable region, these regions are separated by business culture in both regions. Due to less restrictive trade measures in the United States, it is easier to conduct business domestically in the Dominican Republic compared to the United States. Additionally, the risks and stakes of operation are lower due to tax provisions in the United States compared to the United States. Unlike in the United States, aspects of superstition and religion have more effect in the Dominican Republic. The two regions are separated due to income inequality in the Dominican Republic, high rate of poverty, education system, and poor quality of the health system, and inability to respond to insufficiencies in the population’s needs and energy compared to the United States.

The cultural compatibility between the two countries is most evidenced by the high degree of trade relations as shown by levels of imports and exports. In 2017 alone the goods and services between the two regions amounted to $19.5 billion whereby exports totaled to $9.8billion and imports totaled to $9.8billion. American trade deficits totaled to $37 during the same period.

This figure shows that the destination of most of the exports from the United States is in the Dominican Republic.

In the same manner, most of the exports from the Dominican Republic find their destination in the United States among other parts of the world.

Inspite of this compatibility, they are differentiated on the basis of location, size, population, geography, and economy. While the U.S. has a total population of 328.2Million as of 2019 while that of Dominican Republican was 10.63 million in 2018. Additionally, the Dominican economy and that of the United States are structured differently, which often trickles down to ease of operation and inherent risks. As such, a business person who is interested in transacting business in the United States should take note of the differences, strengths, and characteristic risks associated with the production, distribution, sale, labor force, and company operations.

Technology-Infrastructure

In the recent past, most parts of the world have been advancing owing to growth in technology and associated infrastructure. With approximately 74.8% of the population having access to internet usage which is an increase from 35.5% in 2011, it is apparent that the country has developed its technology infrastructure significantly such that technology has become accessible in most parts of the country. Although the use of smartphones and internet is higher in the United States compared to the Dominican Republic, internet growth in the country will increase business growth compared to the past when technology was only accessible in few parts of the country. Growth in transportation including the wide array of airports and seaports and expansive networks in regard to the availability of radio and television channels will facilitate business growth in the country and beyond. With advancement in technology, there is a high likelihood that new TV programs and radio channels will be created thus increasing marketing channels for a business in the country.

Although technology and infrastructure have increased in the country, a potential business person should be cautious of inherent technological regulations that would hinder business growth. With a stable transportation system including the airports, seaports, and road systems, the business will enable the business to run efficiently. As such, an organization that is planning to begin a venture will have the potential to grow owing to the highly connected transportation system and connection in social media, among other marketing platforms.

Economy

            The Dominican Republic has developed sporadically in the recent past with an increase in exports among other services coupled with agriculture, tourism, and mineral deposits. With a GDP of 85.6B to that of the United States dollar, which is an increase from 71.16B in 2015, it is apparent that the country will experience growth in most sectors of the economy including the financial, tourism, and industrial sectors. Improved economic activities with high levels of education and a lower rate of mortality, coupled with improved infrastructure will create positive grounds for business growth in the future. The Dominican Republic has developed high diplomatic connections with the United States, Europe, and China, owing to its records of exports and imports, an aspect that shows that venturing business will have both domestic and international markets. The movement of these goods will be facilitated by the wealth of the transportation systems to move the goods both domestically and internationally. As such, an organization located in the United States aiming to expand into the Dominican Republic will need to understand the economic conditions in the country and pertinent changes and risks that would affect the company’s growth potential.

Business Customs

Before setting up a business in the Dominican Republic, an individual or organization should understand the inherent customs and culture in the county. For instance, according to this culture, relationships are often revered more than negotiations. As such, when negotiating business deals, one should take note to avoid aggressive negotiation antiques in that such behavior could be considered rude or aggressive. Additionally, it is important to understand that most people often uphold honesty in business transactions, an aspect that causes gifting to get viewed negatively in professional scenarios. The Dominicans are welcoming people who often enjoy doing business with foreigners. However, although they are welcoming, business people particularly from the United States should understand the customs of the Dominicans with regard to treating strangers, attending meetings, business taboos, and dress code. For instance, while most Americans have aggressive negotiating tactics that could ruin relationships, Dominicans prefer to have laid down negotiations that adhere to hierarchical principles and are often very bureaucratic. During greetings, one should shake hands while maintaining eye contact with a smile to show interest and respect to the other person. Punctuality is of significance and one should dress professionally with quality fabric as a sign of social status. Although most of these aspects are practiced in the United States, an individual planning to venture to this region should understand essential practices, customs, taboos, and norms to avoid unanticipated losses. Taking these aspects into consideration will help to ensure the implementation of a successful venture due to cultural compatibility and a shared vision of economic growth.

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