Question
Regional trade policy, whether internally or externally guided, has traditionally focussed on removing tariff and non-tariff barriers. This has long been espoused as the catalyst
Regional trade policy, whether internally or externally guided, has traditionally focussed on removing tariff and non-tariff barriers. This has long been espoused as the catalyst that would enhance regional trade and its effect on the economy. Trade facilitation however and in particular that which is related to transport costs has largely been ignored in the regional trade agenda. The last few years have seen significant and dynamic development in international trade, and with the opening up of economies to the expansion of supply chains, the thrust towards globalisation has shown itself to be transport-intensive. Nowhere has this been more evident than in the development and changes in global freight movement systems. Internationally, this change drives modifications to and changes in public policies; however, the policymaking frameworks in the region are typically lethargic, moving at a glacial pace and sometimes countercyclical to international actions. Transportation is recognised to be an inherently crucial component in supporting economic activities as well as providing opportunities for economic development. The provision of transport infrastructure has long been a common priority for governments, as the region has long been considered to be lacking in this area. In recent years, the Greater Caribbean has seen remarkable growth in the containerized traffic handled, driven in part by the development and expansion of port infrastructure. Within this new environment, and in anticipation of additional traffic growth resulting from the expansion of the Panama Canal, the development of logistics services must now be seen as a critical endeavor. Much past analysis of shipping has been from a merely quantitative perspective, looking at how much growth has occurred in the region; however, there are qualitative aspects that merit further analysis. Given the region's reliance on natural resources and proximity to the world's large markets, its two key drivers of comparative advantage, policymakers should be mindful that the advantage proffered by proximity can easily be overcome if logistics in the region does not keep pace with that of its competitors. Furthermore, analysis of regional logistics chains has indicated that distance to trade plays a minor role, while efficiency, both in the ports and within the country, is the key determinant in explaining the major portion of the difference between Latin American and the Caribbean (LAC), and OECD transport costs. High transports costs are strongly associated with fragmented economies and contribute to the region's under-exploitation of inter-regional and international trade. Moreover, a combination of factors, led by the rapid transformation of the world economy, together with the fragmentation of production and the time sensitiveness of trade, has given transport costs an unprecedented strategic importance. As countries in the Greater Caribbean seek to move up the value chain, from traditional resource extraction to more sophisticated manufacturing, their logistics capabilities must be developed accordingly. Transporting the outputs of very simple extractive industries does not require advanced logistics abilities, but high-value products call for services such as freight forwarding, thirdparty logistics, cold storage and warehousing. Practically speaking, the more sophisticated the exports, the greater the demand imposed on logistics and transport services. For the region to therefore move beyond the export of basic agricultural and mining commodities, it must be recognised that logistics requirements will become more rather than less onerous. Manufacturing firms, particularly those integrated into the global production chains, seek not only low transport costs, but also a host of sophisticated logistical needs. The use of third-party logistics or 3PL, for instance, is not a well-advanced concept in the region. In most industrial countries, almost a third of logistics turnover is contracted to 3PL providers. Traditionally, companies outsource non-core functions to logistics providers in order to gain operational efficiencies and reduce costs. With the significant increase around the world of offshore manufacturing operations during the 1990s, there has been a shift from domestic supply chains to global supply chains with international logistics needs. This has increased with the emergence of China as a low-cost manufacturing centre, and the proliferation of free trade areas. Doing business globally has become more complex and requires increased expertise, at the regional and local levels, in managing transportation and warehousing, and adhering to various governmental regulations. It is this increase in supply chain complexity that has driven many companies to engage the help of 3PLs as logistics and regulatory specialists. Further, 3PLs with expertise in international transportation management, warehousing and distribution are providing economies with access to the operational "backbone" of global trade. While there has been some limited development in 3PL services regionally, progression toward the earlier stage of second-party logistics in which companies unify their internal transport and warehousing functions and create their own internal logistics departments is still underway. Integration into the global economy remains a challenge for the Greater Caribbean region, encumbered by a traditionalist approach to export along with inadequate legislative and regulatory frameworks. Despite its importance, the region has not yet placed logistics at the centre of national and corporate competitiveness policies. Improving logistics performance should be a crucial policy objective with improved customs clearance, enhanced transport infrastructure through ports, internal connections, and the availability of advanced logistics services constituting some of the key objectives for the region. The goal should look well beyond infrastructure and the ports and focus on the development of regulatory aspects of trade and the development of local logistics competencies through partnerships with overseas investors. The approach to production, trade and transportation has evolved, and the challenge now facing the Caribbean is how to connect to global supply chains and maximise the opportunities from global trans-shipment hubs.
Based on the above CASE, please answer the following questions
11. List two data collection tools that can be used to collect primary data in the case. Justify the two types of primary data collection instruments chosen. (4 marks)
14. List and discuss four (4) principles that can be used to ensure that data collection and reporting of the data will obey strong ethical values. (4 marks)
15. The case has noted that "Integration into the global economy remains a challenge for the Greater Caribbean region ....". List and discuss three (3) practical recommendations that can be used to ensure better integration of the Greater Caribbean into the global economy. (12 marks)
Plz to add all citation and reference page. For number 15 plz to elaborate
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