Print Email Download Reference This Send to Kindle Reddit This
submit to reddit

Barbados

· About Barbados:-

Barbados is situated in the east of Caribbean Sea i.e. West Indian Continental Island in the western Atlantic Ocean.Highest point that is found Barbados is Mount Hillaby. Barbados ranked in top 75 countries according to Human Development Index. It is ranked 37th in the world and 3rd in America. Barbados has been an independent country after November1966. There are two political parties mainly function in Barbados one is the ruling Democratic party and other is Barbados labour party. Historically Barbadian La was completely based upon English Common Law with a few changes but now a day's Barbadian Law is influenced by UNO and American States organisation

Languages spoken in Barbados:-

English is official language spoken in Barbados. Bajan, which is known as regional variant of English is also spoken there . Spanish is most popular second language spoken there.

Religions in Barbados:-

Most Barbadians are Christans( 95%) many minorities such as Roman Catholic, Jehovah's, Hindu, Muslim, Spritiual Baptists and Jewish also found here.

Currency:- Barbadian Dollar

Popular cities/towns in Barbados: - Christ Church, Saint Andrew, Saint George, Saint James, Saint John.

Some Important facts About Barbados:-

* Total Area:- 431 sq km

* Population:- 281,968 ( July 2008)

* Major industries:- Tourism, Sugar, Light manufacturing.

* Total Global Trade: -

* Merchandise exports:- $ 450 million ( 2008-09)

* Merchandise imports , c.i.f. (million US$) : - 1709 million (2008-09)

* Barbados ranked 59 of 232 countries according to its GDP.

* Barbados ranked 33 out of 111 countries according to quality of life index.

* It ranked 45 out of 178 countries as per Digital Access Index.

* It ranked 5th out of 177 countries as per literacy rate i.e. 99.7%.

* It ranked 21 out of 146 countries as per corruption price index.

* It ranked 40th out of 122 countries as per Global information Technology report.

Interpretation:-

From the above figures it can be easily analyzed that even though Barbados is very small country rather it is an island but still it shows huge growth and performing well if we compare it with other parts of the world, as it got almost fair rankings in all the above indexes and mainly literacy rate is very much high there, these figures really shows the amount of growth opportunity that is existing in this country.

Ø Business Environment exist in Barbados:-

Barbados is known as one of the best location for business in the world. Business environment of Barbados is diverse but stable one. The island has very good political and social stability, a high skilled and productive workforce, sophisticate international telecommunication and services and superior infrastructure are the main strengths of Barbados business environment. Barbados is rapidly become a preferable low tax destination and has attracted foreign investment especially in the areas of IT, Manufacturing and Financial services. Barbados government focused on improving the foreign as well as domestic investment of Barbados and on enhancing the infrastructure to support increasing business activity. Measures were taken by the government in order to improve the investment represents improvements to the corporate registry and the development of treasure treaties with the countries like U.S., Canada and U.K. Barbados also offers all the services and facilities in order to satisfy the business requirements. For business function and event planning it is one of the ideal locations for business conferences and meetings. Business centers are available in the central locations that offer all the basic facilities in a central location.

· Business Hours In Barbados:- Monday to Friday from 8.00-16.00

Following are some advantages of setting Business in Barbados:-

* 10 year tax holiday and after that tax rate will be applicable only 2.5%

* Non applicable of Import Duty

* Full relaxation from capital, profits and dividends.

* Benefits Like Cash grants.

* Customs service is very cooperative.

* Free Consultancy Services from the organization like Barbados Investment and Development Corporation.

* Minimal operating cost

* Duty free access to countries like U.S.A, Canada and E.U.

Special offers given to following major sectors in Barbados:-

Information Technology Sector:-

* Tax benefits by Appling special tax rate of 2.5%.

* Not allocable of Import duty on production related products.

* Repatriation of capital, profits and dividends.

* Special grant of US $ 50.00 per employee per week.

Manufacturing and Production Industries:-

* Up to 10 years exemption from taxes on corporate profits.

* 2.5% tax rate for export industries.

* Expedited customs clearance procedures

* Coordinated investment approval procedures.

* Relaxation from applicable of Import duties on raw material and production machinery.

Tourism and Hospitality Sector:-

* Tourism sector in Barbados is one of the most developed sector and there full economy is depends upon it, full responsibility of promoting and facilitating investment in tourism and hospitality sector is taken care by Barbados Tourism Investment Inc.

Investment and Financial Services sector:-

Barbados is popularly known for the world class international financial services established there, double taxation treaty, domestic tax policies and legislation has facilitate this industry In Barbados.

Following table shows how long it takes to start a business in Barbados:-

Business activities

Rank

Starting a business

51

Dealing with construction permits

19

Employing workers

17

Getting Credit

29

Paying taxes

31

export -import formalities

13

enforcing contracts

61

Closing a business

13

Following table shows the Business environment in India:-

Business activities

Rank

Doing Business ( Easily)

134

To start a new business

88

To deal with licensing

155

To Recruit employees

112

In registering any property

110

To get Credit for business

65

Investors protection

33

Payment of Tax

158

Export-import Procedures

139

To enter into a contract

173

Shut Down of Business

133

Interpretation: - We can analyze from the above data and figures that Barbados is one of the most favorable location for starting a Business because of mainly these two factors:-

* One is government is giving so, much benefits in form of tax rebates for new as well as existing business

* Secondly they are more focusing on sectorial growth which ultimately leads to growth of the country Barbados as a whole.

In the above two table we can easily compare the difference of Business opportunities between India and Barbados and the from the ranks which are assigned to these two countries we can easily analyze that as compare to India, Barbados has better Business Environment and opportunities and this can also proves through the growth of Barbados. Even though Barbados is small island and it has very limited area, Barbados is home of more than 4000 transnational companies that are involved in activities such as international banking and insurance, ships registration, international trade and commerce, private wealth management, IT, communications and manufacturing sector.

Economic Condition exists in Barbados:-

Economic condition of Barbados is very much stable it is ranked 21st in term of freest economy by the Heritage foundation in 2008. But economic condition of Barbados was not same as it is now, in the year 1980 Barbados experienced economic problems due to its economic policies at that time which are considered as practically motivated. Main sectors that has boost the Economy of Barbados is Tourism sector and if something happens to this sector it hampers the economy of Barbados as in case of 9/11 Barbadian economy had to suffer because of 3% decline in Tourism sector. Barbados is successfully able to control its inflation but unemployment rate is main problem faced by Barbados as unemployment rate which was 25% in 1990 but now due to the benefits of IMF it has goes down to 7.6% now. Rate of exchange currently is BDS @ US$1.In 2005 Barbados is suffering from high deficit but its revenue was rises to 1.6% i.e. 2.4 billion due to World Cup 2007 this helped in boosting the economy of Barbados at that time.

Economic Indicators of Barbados:-

Recent economic indicators

2004

2005

2006

2007

2008

2009

GDP (US$bn) Current Prices

2.8

3

3.2

3.4

3.7

3.6

GDP PPP

4.3

4.5

4.8

5.1

5.2

5.2

GDP Per Capita

10,367

10,999

11,646

12,404

13,314

13,003

GDP per Capita PPP

15,850

16507

17537

18603

18977

18639

Real GDP growth( % change)

4.8

3.9

3.2

3.4

0.2

-3

Current account balance US $

-340

-395

-268

-183

-384

-186

Current account balance (% GDP)

-12

-13.1

-8.4

-5.4

-10.5

-5.2

Goods and Services Exports (% GDP)

53.7

61.1

Na

Na

Na

na

Inflation ( % change )

1.4

6.1

7.3

4

8.1

3.5

Interpretation:-

From the above table and chart we can easily analyze the economic condition of Barbados is showing a steady growth, this can be easily proved from the above chart and graph first graph shows that even though the GDP of Barbados is increasing but it is showing very much steady growth as GDP of the country increases from 2.8% to 3.6% in the time span of 5 years and same with the case of GDP at PPP rate and that's the main reason why real GDP i.e. % change in GDP showing a negative change in the period 2008-09.Secondly another important economic indicator that's depicts the economic condition of Barbados is Inflation as in the year 2004 to 2006 Inflation were increasing but in the year 2007 Barbados was able to control it but in the next year i.e. 2008 it increases drastically to 8.1% but still Barbados able to control it in 2009 .so, from the above figures we can say that the economic indicators of Barbados is somehow satisfactory but not so good.

Economic Indicators of India:-

Economic Indicators

2004

2005

2006

2007

2008

2009

GDP at current market prices ( in crs)

24546

27546

31494

35803

41458

47131

GDP per capita ( current prices)

23266

25696

28920

32372

36950

41416

Gross domestic savings

26.4

29.8

31.8

34.3

34.8

na

Gross domestic capital formation

25.2

26.8

31.6

34.5

36

37.5

Gross fiscal Deficit

5.9

4.5

4

4.1

3.4

3

Inflation Rate ( CPI)

3.8

4.2

4.2

5.3

6.4

8.3

Exports ( US $)

63886

83502

103075

126276

159089

171000

Imports ( US $)

78205

111472

149144

1185081

23605

279000

Interpretation:-

Now if we analyze the economic condition of India. GDP of India has been increased from around 24000 Crores to 47000 Crores this shows that GDP of India shows better growth in last 5 years and it always shows an increasing trend which we can see in the first graph. Second indicator that I had chosen is inflation rate according to CPI, I had chosen CPI because then it will be easy for me to compare the inflation of these countries. As we can easily analyze from graph that inflation rate in India is increasing and I think government should take steps now to control it otherwise it will hampers the economy of India.

Comparison Of Economic indicators of India and Barbados:-

Now if we compare the economic condition of both the countries on the bases of these indicators firstly we can easily analyze that India is growing at a better base in the terms of GDP as compare to Barbados. India's economic indicators show a far better growth as compare to steady growth in Barbados. Inflation in India is increasing at a constant rate and it is close to 8.2 in 2008-09 as compare to nearly 4 % in Barbados therefore the results can be found that Inflation in Barbados is controlled better than Inflation in India.

Bilateral Trade Agreement:-

Bilateral trade agreements are between two nations at a time. They are fairly easy to negotiate, and give those two favored trading status between each other. These help both the countries to both their trade relation and help in maintaining better growth in terms of Export and Import between two countries.

Trade agreement between India and Barbados:-

There is a trade agreement between India and Barbados due to which the trade relation between India and Barbados is good but still trade figures of Import and Export between these two countries are not so much high as compare to India's trade relation with other countries.

Import-Export Figures for the last 3 years between India and Barbados:-

India's Import to Barbados:-

Year

Amount

2006-07

.13 million

2007-08

.15 million

2008-09

.03 million

India's Export to Barbados:-

Years

Amount

2006-07

2.05 Million

2007-08

2.66 Million

2008-09

2.52 Million

Major Ports In India:- Major Ports In Barbados:-

Major Ports In India:-

New Mangalore Port

Mormuqua Port

Tuticorn Port

Kandla Port

Vishakhapatnam port

Chennai Port

Mumbai Port

Calcutta/ Haldia Port

Jawaharlal Nehru Port

* Port Of Bridgetown

Trade Routes between India and Barbados:-

* Cheapest and shortest Route while Importing goods From Barbados:-

* Port of Bridgeport to port of Kandla:- ( From Suez Canal)

* Total distance:- 8277 nm and No. of days taken to cover the distance is 34 days.

* Cheapest and shortest route while exporting goods from Barbados:-

* Port of kandla to Port of Bridgetown.

· Major Exports/ Imports Items between India and Barbados:-

Exports from India to Barbados: - Garments, Spices, Basmati Rice, other consumers items and Pharmaceuticals.

Imports into India from Barbados: - Negligible.

* Potential growth areas for Exports:-

Textiles, furnishing fabrics, hotel suppliers, solar energy power panels, plastic items, Medical Suppliers.

· Potential areas for Project Exports from India to Barbados:-

(a) Tourism and Hospitality sector.
(b) Indian hotel chains
(c) BPO companies of India that are situated in Barbados.
(d) Financial and Investment Sector.
(e) IT sector and Computer education.
(f) Pharma Sector
(g) FMCG and food processing sector.
(h) Wind and Solar energy.
(i) ICT and construction Sector of Barbados.

Major Indian companies that operating in Barbados L & T i.e. Larsen and Turbo which help in constructing Cricket ground

DLF

Future relation between India and Barbados:-

A business delegation is coming to India from Barbados in 2009 for improving future trade relation so that better relation can be maintained between these countries so that better trade relations can be maintained

Interpretation:-

Even though there is trade agreement signed between India and Barbados but still there is no such healthy trade relation between India and Barbados which can be easily shown through above figures. India's import from Barbados is almost negligible and India's exports from Barbados is also nearly 2.5 million US$ and which is going on in the same growth in the last three years. But if we analyze the future prospects of trade and investments between these two countries than there is very good prospectus of future growth as there is major sectors in which India is going to invest in Barbados specially in hospitality and construction sector due to which there is no doubt that there will be boost in the trade relationship between these two countries.

Conclusion: - In the end I am concluding that Barbados has very good business environment and there is ample opportunities to invest in the business in Barbados mainly in Tourism and Hospitality sector and if we talk about the economic environment of Barbados then its represents steady growth as compare to India which is showing tremendous growth in the last 5 years and if we analyze the Bilateral trade between India and Barbados then it is represents that there is a trade agreement between India and Barbados but still the figures of import and export between these 2 countries shows that there is very less amount of trade between these countries and imports is almost nil but if we see the future prospects of trade is very good if we analyze the investment opportunities in Barbados so,

Bibliography:-

* http://en.wikipedia.org/wiki/Barbados

* http://www.indembassysuriname.com/barbados.html

* http://www.lowtax.net/lowtax/html/jbscfir.html#geography

* http://barbados.org/business_facilities.php

* http://www.biba.bb/pageselect.cfm?page=16

* http://www.bidc.com/

* http://www.lowtax.net/lowtax/html/jbs2tax.html

* http://www.bilaterals.org/article.php3?id_article=5495

* http://www.bilaterals.org/article.php3?id_article=5495

* http://barbadostourisminvestment.com/business_environment.cfm

· http://www.imf.org/external/country/brb/index.htm

· http://archive.wri.org/pubs/pubs_dataset.cfm?PubID=0

References:-

* Justin Paul, Rajiv Aserkar - Export Import Management-Oxford University Press- 2008 edition

Print Email Download Reference This Send to Kindle Reddit This

Share This Essay

To share this essay on Reddit, Facebook, Twitter, or Google+ just click on the buttons below:

Request Removal

If you are the original writer of this essay and no longer wish to have the essay published on the UK Essays website then please click on the link below to request removal:

Request the removal of this essay.


More from UK Essays

Doing your resits? We can help!