The name of the fictional Central American country was "San Miguel". The name is from the Spanish language and translates as "Saint Michael". San Miguel is actually the real life name of numerous towns and cities across the world but not a country.
First major modern comedy about arms dealers and arms dealing. Others that would follow would include War, Inc. (2008), Lord of War (2005) and Charlie Wilson's War (2007). Wrong Is Right (1982) released the year before also was a comedy and featured arms dealers and dealing.
The quote from the bible said by Ray Kasternak (Gregory Hines) came from Romans 7.19 - 7.20. It said: "For I do not do the good that I want. But the evil I do not want is what I do. Now if I do what I do not want, it is no longer I that do it, but sin which dwells within me".