...An Analysis of Inflationary Pressures in Trinidad and Tobago Table of Contents Executive Summary 3 Introduction 3 Current Inflationary Pressures 4 Global 4 Domestic 4 Causes of Inflation 5 Figure 1-The Oil Price and Inflation 5 The Effects of Inflation 7 A Comparison of Regional and Global Inflation Rates 8 Table 1-Annual Inflation Rates-Selected Caribbean Countries 8 Table 2-GDP per capita- Selected Caribbean Countries 8 Table 3-Annual Inflation Rates-Developed Countries 8 Inflationary Trends and Analysis 9 Figure 2- The Last Decade 9 Figure 3- Inflation and Unemployment 9 Conclusion 10 Recommendations 10 Executive Summary Analysing the domestic inflation rate, it was found that the main driver of inflation was food prices. Rising global food prices is expected to continue to put upward pressure on local food prices and subsequently the headline inflation rate in Trinidad and Tobago. While this is a global phenomenon, developing countries are expected to be impacted harder than that of the developed nations. This is due to lower incomes as well as less developed and efficient market systems. Food accounts for a substantial portion of imports in Trinidad and Tobago therefore making us highly susceptible to imported inflation. To limit the impact of imported inflation, local agriculture and manufacturing sectors need to expand. Another contributor to the inflation rate was the average annual oil price for the corresponding year. These two variables...
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...that stand behind it. AMARO DI ANGOSTURA® A magnificent herbal liqueur marries spirit, spices and bitter herbs after a 3 month engagement period! Amaro di Angostura® was launched in 2014, crafted as a sophisticated and modern expression of versatility, inspired by our unique Angostura® aromatic bitters, first created in 1824. The result — AMARO DI ANGOSTURA® — an elevation of a classic liqueur to an entirely new world dimension to the category. Amaro di Angostura® can be enjoyed over ice, is splendid on its own and offers delicious harmony in a cocktail. Like Angostura® aromatic bitters, the Amaro di Angostura® recipe will remain a secret. Experience a perfectly balanced drink, exotic, lush, reminiscent of the essence of Trinidad and Tobago’s pulsating rhythms, tropical climate and beauty. The flavours explode on your tongue with warm cinnamon and liquorice notes. AN AWARD-WINNING VOYAGE OF 190 YEARS Angostura No.1 wins 2014 Caribbean...
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...sales taxes, or subsidies are implemented since there isn’t a country to add borders ("22 Globalization Pros and Cons", 2017). For example, In Trinidad and Tobago, tariffs are now countless and theoretically possesses the preeminent market for imported consumer goods in CARICOM. It furthermore offers the local producers a final opportunity in the market. Though, it is a momentary measure, it enforces on the overseas producers to be economical, if they desire to recapture the CARICOM...
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...products at groceries and retail stores. As a market entry proposal, the company aims to establish operations in one of the three following countries: Trinidad and Tobago, Dominican Republic, and Colombia, as it hopes to gain a strong ground on the booming coffee industry. Despite the close proximity of Starbucks to Central and Latin America, the company has been relatively poor in establishing markets in these regions. The first store was opened in Mexico City in 2002, followed by Lima, Peru in 2003. This region seems to be the perfect fit for Starbucks to expand due to the expanding Coffee production industry. The Colombian Coffee Bean offered by Starbucks is imported from Colombia and is one of the most successful products. Apart from the coffee industry, tourism holds tremendous promise for Starbucks to expand in this region, as approximately 20% of passenger traffic to the Caribbean region comes from the United States. These positive signs show great promise for Starbucks to expand its global picture and continue to remain as the world’s best coffee retailer. Company Overview: Time Out Magazine of San Francisco acknowledges the founders of Starbucks: Jerry Baldwin, Zev Seigl, and Gordon Bowker, who founded the company while they were students of the University of San Francisco (“Using APA”, 2011). Between 1971 and 1976, the company had only one store open in Seattle (Brewer, Brissenden, & Carmin, 2012). During the 1980s, Starbucks took advantage of the booming specialty coffee market in the United States...
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...Ministry of Trade and Industry Republic of Trinidad and Tobago Commonwealth Secretariat SMALL STATES IN TRANSITION – FROM VULNERABILITY TO COMPETITIVENESS “BEST PRACTICE CASE STUDIES IN TOURISM” Ms. Helen Williams H. Williams & Associates Dr. Dorothy I. Riddle, CMC Service-Growth Consultants Inc. Vancouver, Canada Port of Spain, Trinidad & Tobago – January 2004 1. Overview Because tourism is the world’s largest industry – responsible for more than one in ten jobs globally and contributing over eight percent of domestic economic activity – developing countries are targeting tourism to generate more income for their national economy. In order to be successful, each country needs to formulate a tourism strategy that identifies and justifies its strategic objectives, priorities, and targets. Small States are particularly challenged because they are more dependent on external trade while having fewer domestic resources on which to draw. For this project1, six Small States representing different geographic regions and stages of development were chosen for an examination of best practices and lessons learned in developing a national or regional tourism strategy: the Bahamas, Botswana, Bulgaria, The Gambia, Trinidad & Tobago, and Vanuatu. A tourism best practice is an innovative policy, strategy, programme, process, or practice that is shown to produce superior results. Country Type of Best Practice Example of Best Practice The Bahamas ...
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...COMMERCIAL BANKS Commercial banks are important financial intermediaries serving the general public in any society. In most cases, commercial banks hold more assets than any other financial institution, in some cases, even more than Central Banks. Apart from their many functions, commercial banks facilitate growth and development. They lend in many areas or sectors of the economy. Viewed from the real sector, they contribute to investments, employment creation, and by extension the process of economic growth. In Trinidad and Tobago there are 8 commercial banks as follows; • Bank of Baroda (Trinidad and Tobago) Limited • Citibank (Trinidad & Tobago) Limited • FirstCaribbean International Bank (Trinidad & Tobago) Limited • First Citizens Bank Limited • Intercommercial Bank Limited • Republic Bank Limited • Scotiabank Trinidad and Tobago Limited • RBC Royal Bank (Trinidad and Tobago) Limited There are many other institutions such as credit unions, development banks, mutual funds to name a few. However, notwithstanding this commercial banks can be described as the head of the financial system. They are by far the largest mobilizers of savings and providers of loanable funds. They now account for over 50% of the total assets of the financial system and far more than half of the financial savings of the domestic economy. (See Table 1) Assets of the banking System (2001-2008) [pic]With all these resources...
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...Economist, Central Bank), Sarah Suphal (Senior Lecturer, UWI), Marjorie Jewan (Senior Economist, Ministry of Finance) and Shereeza Ali (President of Chamber of Commerce) and right now we’re going to open up the telephone lines.....Caller Number One?!” Caller one asks question for task 2.1 Jason: Thank you caller. For the sake of the wider public; society is faced with the economic problem of scarcity, which exists because factors of production or to use common vernacular…resources…are finite while consumers’ wants are infinite. Economic systems are the systems employed by the state or nation to allocate these scarce resources and apportion goods and services in the national community. Now, there are three basic economic systems, planned, market and mixed…so I would now invite the panel to shed some light on each of these and in particular help the caller to understand which applies to our local economy. Marjorie: Ok…Jason so you mentioned planned economies, a planned is where the government has total control of the economy and the allocation of resources. Government and their central planners decide on what, how and for whom goods and services are produced. This type of governance is associated with socialist type economies namely Korea and Cuba. In a Planned Economy central planners decide what to produce based on assumptions of consumers needs of goods and services and they also focus on allocating resources for future consumption. Central planners also plan the production...
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...A BRIEF HISTORY OF THE CARIBBEAN COMMUNITY (CARICOM) WEST INDIES FEDERATION Established in 1958, the West Indies Federation comprised the ten territories of Antigua and Barbuda, Barbados, Dominica. Grenada, Jamaica, Montserrat, the then St. Kitts-Nevis-Anguilla, Saint Lucia, St. Vincent and Trinidad and Tobago. The Federation was established by the British Caribbean Federation Act of 1956 with the aim of establishing a political union among its members. Although a plan for a Customs Union was drawn up, emphasis was not placed on the economic aspect of Federation during the four years of its existence. Economically, the Region remained as it had been for centuries, and not even free trade was introduced between the member countries during this period. The West Indies Federation came to an end in 1962 but its end, in many ways, must be regarded as the real beginning of what is now the Caribbean Community. The end of the Federation meant the beginning of more serious efforts on the part of the political leaders in the Caribbean to strengthen the ties between the English-speaking islands and the mainland territories, Guyana and Belize, by providing for the continuance and strengthening of the areas of cooperation that existed during the Federation. To this end, in mid-1962, a Common Services Conference was convened to take decisions on these services, the major ones among them being the University of the West Indies (UWI), founded in 1948 and the Regional Shipping...
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...Migration is the movement of people from one place to another (Merriam-Webster 2013). Migration has defined modern Caribbean features since colonization, slavery and indentureship (Nurse 2003). The Caribbean has one of the largest diasporic communities in the world, in proportion to population (Stalker 2003). For example, it is estimated that the Cubans and Dominicans in the USA are equivalent to 8% of their respective populations of origin (UNECLAC 2002: 237). And, in some of the mini states in the region like St. Kitts and Nevis, Grenada and Belize, annual labour migration accounts for as much as 12% of their population, thereby transferring their population growth (Mittelman 2000: 60). In addition, the loss of highly educated individuals from the Caribbean was due to the brain drain and the question of migration and remittances and if they could improve the standards of living for the individuals, their families and communities hence, aiding in the development of the region at large. The issue of migration and development has health and security risks associated with it for instance, HIV/AIDS and the increase in deportees into the Caribbean. Emigration in the Caribbean has occurred in two waves. The first wave occurred in the 1950s and 1960s in the Western economies during the post World War II which was a result of improved standards of living by finding full employment and lack of work in unskilled and semiskilled jobs. The second wave was due to the outcome of global...
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...Located in Laventille, Trinidad and Tobago, Angostura Limited is the manufacturer and distributor of an assorted collection of drinks which include rum, distilled spirits, gins, wines and scotches, pre- mixed drinks and sauces that is acclaimed by an adult oriented market. The company announced that it incurred a billion-dollar loss in 2009 because of money owed to it by its parent, CL Financial. Even so, the Angostura Group managed an after-tax profit of $371 million in 2010.The marketing tools employed by Angostura Ltd has led them to regain profitability in the local market (see Appendix 1). The financial crisis that ravaged them in recent years was not only the result of their parent company but also outside influences that hampered on their performance (see Appendix 2). 1.1 Competitor’s Analysis The two (2) primary local competitors in Trinidad and Tobago regarding the distribution of alcohol are AS Bryden& Sons Limited and Alston’s Marketing Company Limited (AMCO). They have feverishly pursued in obtaining the local target market with imported premium spirits that embodies recognition globally. Alston’s Marketing Company Limited (AMCO) Price is based on Product Line Pricing, Competitive Pricing and also Premium Pricing because of the premium spirits they offer to their consumers. Import tax and duties are major contributors in determining final pricing. AMCO’s main distributing center is located in Chaguanas, Trinidad and Tobago. The company maintains...
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...American International Journal of Contemporary Research Vol. 2 No. 2; February 2012 CLICO’s Collapse: Poor Corporate Governance Wayne Soverall1 Abstract The corporate collapse on January 30, 2009 of CLICO, the largest conglomerate in Trinidad and Tobago and the Caribbean, is the worst financial shock experienced by the region to date. Today, more than two years later, its devastating effects are still being felt as the government continues to struggle with the bailout to stabilize the financial system, mitigate contagion risk, and resolve the CLICO crisis. Even one year after the bailout, there was still no resolution of the crisis. In view of the intractable nature of the CLICO collapse, the People’s Partnership government that came to power on May 24, 2010 established a commission of enquiry to investigate the causes of CLICO’s collapse, the scope of the MOU, the cost of the bailout, and the failure to provide a bailout to the Hindu Credit Union (HCU) that collapsed in 2008. There are many questions that are still unanswered. What were the root causes of CLICO’s collapse? What corporate governance structures and practices precipitated the collapse? Did the bailout create moral hazard? Who or what was to blame for the collapse? What action has the government taken to date? What lessons have been learnt and, more importantly, how can this situation be prevented from being repeated in the future? This concept paper examines these questions, analyzes the evidence to find...
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...American International Journal of Contemporary Research Vol. 2 No. 2; February 2012 CLICO’s Collapse: Poor Corporate Governance Wayne Soverall1 Abstract The corporate collapse on January 30, 2009 of CLICO, the largest conglomerate in Trinidad and Tobago and the Caribbean, is the worst financial shock experienced by the region to date. Today, more than two years later, its devastating effects are still being felt as the government continues to struggle with the bailout to stabilize the financial system, mitigate contagion risk, and resolve the CLICO crisis. Even one year after the bailout, there was still no resolution of the crisis. In view of the intractable nature of the CLICO collapse, the People’s Partnership government that came to power on May 24, 2010 established a commission of enquiry to investigate the causes of CLICO’s collapse, the scope of the MOU, the cost of the bailout, and the failure to provide a bailout to the Hindu Credit Union (HCU) that collapsed in 2008. There are many questions that are still unanswered. What were the root causes of CLICO’s collapse? What corporate governance structures and practices precipitated the collapse? Did the bailout create moral hazard? Who or what was to blame for the collapse? What action has the government taken to date? What lessons have been learnt and, more importantly, how can this situation be prevented from being repeated in the future? This concept paper examines these questions, analyzes the evidence to find...
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...The purpose of this paper is to assess the impact of globalization on the Caribbean business environment. Much has been written about globalization which is more accurately viewed as a process of change rather that an event which has already occurred. The impact of globalization on any environment can be both positive and negative and can be described as the enablers or the constraints which affect the decisions made by leaders, both government and business. It also refers to the way these choices affect the lives of all people. Scholars David Held, Anthony McGrew, David Goldblatt and Jonathan Perraton developed a general framework for understanding the process and characteristics of globalization. The authors said that, “in its simplest sense globalization refers to the widening, deepening and speeding up of global interconnectedness. They also suggest that the process of Globalization does not only have one kind of impact or outcome but four different types namely Decisional, Institutional, Distributive and Structural: • Decisional impact. How does globalizing processes affect how individuals, corporations, organizations and governments make decisions? • Institutional impact. How does globalization change the agendas of organizations and individuals, structure their choices and influence their preferences? • Distributive impact. How does globalization change the way wealth and power are distributed within and among countries? • Structural impact. How does globalization...
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...caribbean studies notes MODULE ONE LOCATION AND DEFINITION OF THE CARIBBEAN REGION Definition of the Caribbean Region Geographical This describes the area washed by the Caribbean Sea and is often described as the Caribbean Basin. It would therefore include most of the islands of the Lesser Antilles, Greater Antilles as well as the mainland territories in Central America (Costa Rica, Belize, Panama, Honduras) and Northern South America such as Columbia and Venezuela. The common link here is the Caribbean Sea. Geological There are deep seated structural features of Caribbean geology which also identifies commonalities. It is the area that is defined by the Caribbean Plate and which experiences similar tectonic, seismic and volcanic features and processes. Historical It describes the area that saw the impact of European colonization, slavery, indentureship and the plantation system. this refers to all the territories so that one way of defining the Caribbean is to identify those countries that experienced the rule of specific European countries. Thus the Caribbean may be defined as being broken up into the English, French, Dutch and Spanish speaking countries and territories. Political In the Caribbean at least three types of governmental systems are found. They include Independent States, Associated States and Colonial Dependencies. CHARACTERISTICS OF SOCIETY Society Society is a collection of people occupying a defined geographical...
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...transformation to improve organisational efficiency. 1.2 Leadership in this regard plays a pivotal role and is the rudder that steers the company in the direction it takes. Leadership in its own right is having a vision and inspiring a team to work together towards the same goal. This involves having to understand the temperaments and talents of each individual and get each person to effectively contribute individually at their best to accomplish the goal of the group. There are different types of leadership styles which are; Laissez-Faire leadership, Autocratic style of leadership, Democratic or Participative style of leadership and Bureaucratic Leadership Style. 1.3 Sandstone Construction Limited is a family business within the Republic of Trinidad and Tobago. They offer a wide range of Construction Services; successfully taking the client from foundation to finish. The management of Sandstone Construction...
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