International Investment Analysis : Jamaica And Coffee Industry

2207 WordsApr 22, 20169 Pages
Introduction In this report is aimed to analyze about international investment analysis. The country that we choose to investigating is Jamaica and in coffee industry. This assignment will examine in Macro, Micro economy, free cash flow, risks and opportunities of the country and how can we manage those risks or turn it into the opportunities. Consequently, we have to recommend this analysis to Starbucks and it is going to extend more knowledge research and explore further more information about doing business in Jamaica. Macro economy Inflation In term of, an overall view in macro economy in Jamaica. Jamaica has decreased in inflation rate from 9.77% in 2014 and right now is 5.30% (Tradingeconomics, 2015). Despite in many serious kind…show more content…
Exchange rate & Currency Follow by exchange rate and currency, Jamaican is using a Jamaica dollar (JMD) with the exchange rate of 1 United States Dollar (USD) is equal to 115.39 JMD (Tradingeconomics, 2015). Jamaica has a very low value of currency as their exchange used to be 60 JMD to 1 USD and right now is 115 JMD. The low value of currency is good for solving an unemployment rate and beneficial for making exports cheaper but imports dearer to solve the trade deficit. However, it still may create inflation rate problem. GDP, GDP per capital & GDP growth rate Gross domestic product (GDP) in Jamaica is 14.36 billion USD, GDP per capital is 5562.24 USD and GDP growth rate is 0.6% in 2013 decreased to -1.2% in 2014 (Worldbank, 2015). It shown that people become less effective in the country or tend to save money and spend less money on purchasing the products. Population growth For the population in Jamaica is recorded at 2.72 million people (Tradingeconomics, 2015). Jamaica has a generally increasing for population in every single year from 2.65 million in 2006. Unemployment rate Nevertheless, unemployment rate in Jamaica is reduced from 15.3% in 2013 to 13.4% in 2014 with 364,480 people are jobless (Tradingeconomics, 2015). That is the main reason why the government decreased a value in currency to solve this unemployment rate issue. Even though they are having quite a high number of unemployment but they are still trying to decrease it year
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