Topic: Explain how the establishment of the CARICOM Single Market and Economy (CSME) has assisted its members to respond to the challenges of globalization
The CARICOM Single Market and Economy (CSME) was established in 1989 and consist of 13 of the 15 CARICOM members. The goal is to deepen the integration movement and to better respond to the challenges of declines in tourism, merchandise export receipts, remittance and capital flows presented by Globalization. The CSME is designed to create one market among participating member states for the full use of labour and full exploitation of the other factors of production, competitive production leading to greater variety and quantity of products and services to trade with other countries. The effects of globalization has been reflected in increased liberalization and market-opening policies. CSME aims to reduce the impact of globalization by implementing policies geared towards harmonising and coordination of social, economic and trade policies by participating member states.
The CSME has a provision which allows for the free movement of goods and services. Goods and services produced in the region are allowed to be traded freely without restriction in the region. The outcome of such a policy should be increased competition among CSME members, leading hopefully to improved quality and more competitive prices regionally and internationally. The unimpeded movement of labour between member states to provide products and/or services also creates constructive competition as it pushes everyone to a higher standard to be competitive regionally and internationally.
In addition to achieving an enhanced level of competitiveness , the CSME encourages intra-regional trade and allows for member states to negotiate as a single entity by way of the Common Trade Policy. Economies of scale allowed for increased competitiveness of members of CSME in the global market. This would afford them better opportunity to...