Question 3 Answer
(a) The CSME was established to transform the common market (CARICOM) into a single market and economy, and to deepen the integration among Caribbean states.
(b) A single market economy allows free movement of capital, labour and trade of services. This will make it easier for the expansion of Caribbean businesses, resulting in increased employment regionally. More profits will be created to provide capital for further investment in the region.
(c) Two trading arrangements such as the CBI and CARIBCAN allow duty free entry into the United States and Canada respectively. Duty free entry results in Caribbean products being more competitive on the markets of these countries as they can market at a lower price than products from other countries. Lower prices will increase demand and thus expand exports.