Market+Challenges

4 . **__Market Challenges__**

 * • Despite challenges, why should we trade with Belize? **
 * • Define import license, interest rates, and price controls. **
 * • Select what you think are the 3 biggest challenges and describe each one **

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1. Even though challenges exist in trading with Belize the United States should continue to trade with Belize because historically Belize is a import country. And in the past we have been their number one country to import goods from. They offer an easy way to get our goods because of how close they are to us and the easy air or ship travel. They have found oil in two different locations to date but not have made large steps in making these functional. If we continue to trade with them though, when they are able to get the oil we can use them to get our oil. Also, the government controls prices for certain items, mostly agricultural, this makes a more stable trade because the prices will not randomly go up and down. Another reason that we should not look past Belize is because they have strong American influences. This can make the trading process easier and smoother experience compared if we trade to a completely different cultural with no similarities. =====

2.an i**mport license** is a document issued by a national government authorizing the importation of certain goods into its territory. Import licenses are considered to be non-tariff barrier trades when used as a way to discriminate against another country's goods in order to protect a domestic industry from foreign competition. ** Interest rates- ** when a person or company barrows money from a bank they have to pay a rate for what they borrowed. **Price Controls- ** governmental impositions on the prices charged for goods and services in a market, usually intended to maintain the afford-ability of staple foods and goods, and to prevent price gouging during shortages, or, alternately, to insure an income for providers of certain goods

http://en.wikipedia.org/wiki/Price_controls

3. The first reason why it would be difficult to trade with Belize because it is a third-world country and it would be tough to communicate because of the lack of technology in this country. For example, it was difficult to communicate with Chris Hawkes because there was a lag. This would make any business to be done hard complete because it would take a very long time usually to talk and make both sides frustrated. Next, the government of Belize and investors in the United States are known to have problems and creates another issue in business. Delays are expected because of new legislation passed by the government and usually turns away possible investors from the United States. For example domestic interest rates for commercial borrowing were raised by the government to a high percent which is now at 13 to 16 percent. Lastly and probably most obvious is that Belize is the smallest consumer market in the region. This will obviously make any trading or business tough to complete because of the lack of Belize importing our goods. They simply do not have the money to always pay for our exports.

http://eschool.franklinregional.k12.pa.us/moodle/mod/resource/view.php?inpopup=true&id=9955

Belize Beach, no technology

Goats

Blue hole in Belize

Belize trade. National Bird