Case Study- Economic Environment

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College of Science, Technology & Applied Arts of Trinidad & Tobago

DEPARTMENT OF INFORMATION SCIENCE AND TECHNOLOGY

ASSIGNMENT COVER PAGE

ASSIGNMENT TITLE: Case Study

ASSIGNMENT SUBTITLE: Trinidad & Tobago Economic Environment

COURSE CODE: ENTP 220

COURSE TITLE: Caribbean Business Environments

CRN: xxxxx SEMESTER: 2

STUDENT NAME:
Kevin Bramble -

PROGRAMME:
DATE OF SUBMISSION: SAT. 27th APRIL 2013
LECTURERS NAME:

Table of Contents

1. Examine the economic statistic of the country and determine the health of its business environment……………………………………………………………………………3 - 4

2. What are the major areas of economic activities that firm located in your country are involved in that are targeted towards export markets?...................................................4 - 5

3. Which firms are the major players? Are they locally owned or foreign owned? Privately owned or publicly?...............................................................................................................5

4. Does the government in play a major role or a minor role in setting up and operating business in the county?........................................................................................................6

5. Trace the growth of the manufacturing sector in comparison to the agricultural sector in the CARICOM country over the five year period from 2008 – 2012. How have both performed in terms of their contributions to employment and GDP?............................7 - 8

6. Can industrial policy be used to develop the country? What is your advice to the Government in the use of industrial policy in aiding the country’s economic development? Or if not, what reason would you give?...............................................8 – 10

7. Conclusion…………………………………………………………………………..10 - 11

8. References………………………………………………………………………………..12

Q.1 Determine the health of Trinidad & Tobago’s business environment.

We have examined some basic economic statistics with a view to determining the health of our business environment. In doing so we looked at seven statistics taken from the ‘Review of the Economy 2012’ as published by the Ministry of Finance and found at www.finance.gov.tt. As such we conform to and extract the ‘economic’ feature of the PESTLE analysis in using economic indicators to determine the health of the economic environment of Trinidad & Tobago.

In our research we were able trace the economic GDP as far back as 2008, where it was TT$ 175,287.2 million, we noted that while it declined sharply (30.8%) in 2009 due to the effects of a global recession, it had steadily grown by a total of 25%; since then we found that GDP as of 2012 stood at TT$153,587.9 million.

The retail price index which illustrates headline inflation showed a percentage increase from 2011 to 10.8% in 2012 and an increase in core inflation from 1.8% to 2.8%. The unemployment rate seemed to have declined from 5.2% to 4.2% as of December 2011. The fiscal balance for the year 2012 is at a deficit of TT$6,678.8 million and is the fourth straight year that such a deficit exists at the budget balance. This figure also represents 4.3% of GDP.

We have found that where the report refers to trade with CARICOM countries, while Trinidad & Tobago has increased non-oil imports over time, there has been a loss of almost TT$2,000 million in non-oil export revenue between 2011 and 2012. The result of which is the lowest ever non-oil export surplus. This impacts negatively on the manufacturing sector and indicates a not so healthy regional economic temperament. The export of petroleum and its products however still allows Trinidad & Tobago to maintain a large trade surplus versus our CARICOM neighbors, as has been the case since 1998.

Total visible trade has traditionally been maintained at a surplus...
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