List three objectives of CARICOM.
Three objectives of CARICOM are:
-joint negotiations internationally
-economic integration of the region
-improved standard of living for the region
Explain how the CSME differs from CARICOM.
This transforms the common market into a single market and economy. It establishes a single currency for the region and the free movement of human and capital resources throughout the region.
Outline the main objective of the World Bank.
The World Bank provides long-term loan for developmental projects. Its main aim is the reduction of poverty in worldwide. Loans are provided for purposes such as infrastructure and industry.
(a) Identify two economic problems that affect Caribbean countries.
(b) Discuss one method that can be used to solve one of these problems.
(a) Two economic problems that affect Caribbean countries are unemployment and high debt burdens.
(b) High debt burdens can be reduced by methods that increase foreign exchange earnings and reduce dependency on imports. Support for local industries in the form of tax holidays, duty free imports and low interest loans will reduce cost of production and thus encourage output. Lower market prices will encourage local consumption and increase the competitiveness of products on the international market.
Explain the role of the Caribbean Development bank.
The Caribbean Development bank was set up to finances regional projects that contribute to the economic growth and development of the region. For example: providing funds for roads, education and business development.
Give two methods that can be used to increase FDI.
Caribbean government can encourage FDI incentives with methods such as tax holidays, affordable operating costs (labour and utility) and availability of human and natural resources.
What is the role of the WTO?
The WTO was set up to monitor and regulate trade among nations of the world based on their collective agreements.
List three international trade agreements.
Three international trade agreements are:
-The Caribbean Basin Initiative (CBI)
-North American Free Trade agreement (NAFTA)
Outline one trade agreement that involve Caribbean countries and explain the long term benefits of these agreements to the Caribbean.
CARIBCAN gives Caribbean countries duty free access to markets in Canada. It ensures a steady market for Caribbean products and thus long-term development of local industries. Other benefits include: employment and linkage industries.
Write brief notes on ECLAC.
The ELAC is an organization of Latin American and Caribbean countries. They aim to reinforce economic ties among the countries of Latin America and the Caribbean.