6-1 Checkpoint
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Jamaicacheckpoint.pptxChina Brown
Jamaica
Country Analysis
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Introduction: Jamaica
Rationale
The selection of the states is predetermined by Hofstede’s findings on the culture in Jamaica.
The culture of this state is characterized by masculinity, individualism, uncertainty avoidance, and power distance(Hofstede Insights,2019).
Its cultural diversity forms a better background for the analysis
Location and Geography
The country is not landlocked.
It is an island in the Caribbean sea estimated to be 10990km2. Its topography is characterized by mountains.
It is capital city is Kinston.
Insert Map Here
Being a country with diverse culture, it provides a better platform for critic as they cultures interact in business operations. It an island therefore not vast, its limited area provides a better ground for interaction of all parties. Thriving in this country is based on the natural selection laws.
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Sociocultural Environment
Country Composition
The country heavily relies on the provision of services rather than the exchange of goods.
Foreign exchange is mostly obtained from remittances tourism.
The literacy of the state is at 88.1% in adults.
More than half of the population lives in urban centers, thereby providing a ready market for goods and a ready supply of labor for industries.
The cities are therefore densely populated as most people live in the urban centers. It is a state that is cultural attractive thereby attracting more tourists. Selling of services is categorized as the one of the major selling item in the state.
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Sociocultural Environment
Values and Communication
Rules are leniently followed as associations are the most preferredThey communicate what they think as the country has low Uncertainty Avoidance (Commisceo Global, 2019).
Formal communication is prevalent in horizontal communication
Relationship building is gradual
Business Etiquette
businesses work with scheduled appointments in advance for punctuality.
They hate high-pressure sales tactics
Business hierarchy is maintained where the senior makes decisions(Commisceo Global,2019).
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Sociocultural Environment: Observation Deck
Business Observations
The way of life affects business operations in the following methods.
Formal communication is applicable in business in horizontal communication.
The citizens hate bargaining tactics associated with high pressure.
Since familiarity is not approved with the first greetings relationship in business is also develops gradually
Punctuality is ensured as companies operate on appointments.
Business hierarchy is maintained when the seniors make decisions.
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Political-Legal Environment
Government and Ideologies
The ruling party is Jamaica Labor Party. Its is led by Prime Minister Andrew Holness, who is the current leader.
The opposition is strongly emanating from the PNP whose leader is Dr. David Phillips.
There have been no recent changes in the ruling reign
Corruption
The country is ranked 70/180 in terms of CPI with a score 44/100.
More persons are engaging in corruption, especially in public offices. This is a negative attribute that may drive investors away as according to Transparency International, there is an increase in cases of corruption in the country(Transparency International, 2019).
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Political-Legal Environment
Trade Regulations and Legal Considerations
Being a member of CARICOM, some items are subjected to Common External Tariffs.
Foreign workers have challenges obtaining work permits.
The high cost of electricity impacts businesses negatively.
There are phytosanitary and sanitary restrictions regardless of trade liberalization in the state.
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Political-Legal Environment: Observation Deck
Business Observations
The information provided may be useful to an organization in the following ways.
Information regarding trade restriction may help an investor identify goods allowed.
The high cost of electricity in the country may act as a business gap.
Countries that are members of CARICOM enjoy free duty, thereby attracting other countries to invest.
The increase in the rate of corruption is a warning to investors who are against the vice.
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Economic Measures
The GDP growth as was at 1.7%. The inflation rate was at 3.4% as at 2017.
The unemployment rate as at 2013 was at 9.6%
More than 75% of the population is living above the poverty line
Trade
The main export partners are USA contributing 40.8%
Canada, Netherlands, the United Kingdom each contributing less than 15%
The main import partners include US, Trinidad, China, Japan, Brazil with the main export item being bauxite beverages, chemicals
The main items of import include food, industrial supplies machinery.
Agreements made on CARICOM and CET dominate the exchange of items.
NFTA has also made investments possible
Economic-Infrastructural Environment
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Economic-Infrastructural Environment
Investments in information communication technology have boosted investments in the country as communication has been aided. Cellular mobiles, fixed lines, and other technologies are used.
The country has invested a lot in constructions of roads that make it easy for the transportation of industrial good.
Security is not a concern in the area making it suitable for investments.
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Economic-Infrastructural Environment: Observation Deck
Business Observations
The country is ranked 70th in terms of ease of doing business.
There are fewer telecommunication barriers thereby promoting business operations.
Trade agreements such as CARIMA, WTO, NFTA provide a better playing ground for member states to interact with Jamaica.
The increase in corruption rates is a delimiting factor.
The GDP of the state is also attractive to investors.
The low unemployment rate facilitates this.
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Final Recommendations
Market Entry Strategies
Turnkey projects is a suitable strategy as it is most applicable in countries that rely on services as it is in this case. Services such as environmental consulting are appropriate in this state.
It is one of the best ways of getting assurance in payment as the government in most cases is the buyer.
Cultural Awareness
The cultural elements to be considered in this case include the tariffs present.
A country will be placed better if it is sharing a general trade agreement with the state.
Other factors such as the way of life of the citizens will not affect as the relationship is between the government and the service provider.
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References
Commisceo Global. (2019). Jamaica - Language, Culture, Customs and Etiquette. Retrieved from https://www.commisceo-global.com/resources/country-guides/jamaica-guide
Hofstede Insights. (2019). Country comparison: What about Jamaica? Retrieved from https://www.hofstede-insights.com/country-comparison/jamaica/
Jamaica map
Transparency International. (2015). Corruption by country/territory: Jamaica. Retrieved from https://www.transparency.org/country/JAM
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