Final answer:
Guatemala borders Honduras to the north, and Nicaragua borders Costa Rica to the south. Honduras is known as a banana republic, while Costa Rica is considered the 'Switzerland of Central America'.
Step-by-step explanation:
The country that borders Honduras to the north is Guatemala, while to the south, Costa Rica is bordered by Nicaragua
Honduras is situated in Central America and is known for not having experienced civil war unlike its neighbors, thus avoiding the political instability common in the region.
It is often referred to as a banana republic due to the historical dominance of American fruit companies over its economy, particularly with respect to banana exports.
On the other hand, Costa Rica, which is recognized as the 'Switzerland of Central America' due to its stability and economic growth, does not maintain an army and is known for its democratic and peaceful character.
Its northern neighbor is Nicaragua, which is the largest country in Central America and shares its southern border with Costa Rica.