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Globalisation and its Implications for Caribbean Business

Globalisation and its Implications for Caribbean Business

Indicate your understanding of the concept of globalisation and discuss fully its implications for Caribbean business development.

Globalisation is the process enabling financial and investment markets to operate internationally largely as a result of deregulation and improved communications.  It offers an opportunity for a larger volume of production in which lower costs of production per unit of output may be achieved.  The prospects of increased profitability in the home market are improved while there are greater opportunities to counter falling demand in one area by increasing demand in others.

The present global process is the result of progress in technology, telecommunications, transport and electronics, and the outcome of political changes that ended the ideological division of the world.  The decline in the barriers to the free flow of goods, services and capital is also a driving force behind the globalisation process.  The objective of globalisation is to unify and include

CHALLENGES OF GLOBALISATION FOR THE REGION

1.	The Erosion of Trade Preferences

In the 1990’s some developments including the trend toward the liberalisation of world trade, the establishment of the WTO, and the increase of regional trade agreements have clouded the prospects for continued preferential export access.  The issue is particularly

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