Introduction
The Bahamas is itself an island country that plays host to more than seven hundred other small islands. It is located in the Atlantic Ocean. A larger population of Bahamas is made of black people. It became a British colony in 1783 and consequently gained its independence in 1973. The country has, over time, prospered in the fields of tourism, management of investments and also international banking. Worth noting is that because of its strategic location, Bahamas has increasingly been used as a shipment location of illegal commodities including drugs and illegal migrants. This is particularly to the US and the UK. The following research paper will thus present a discussion on the Bahamas regarding the reasons for establishing or rather not developing business in the country. IT will enumerate its CAGE analysis and SWOT analysis.
A. Culture
Religion- The population of Bahamas is predominantly made up of Christians with Baptists making thirty-two percent of the Christian population. Twenty percent are Anglicans while twenty-four percent belong to other groups of Protestants. Roman Catholics make up nineteen percent. A Greek Orthodox community is also present.
Ethnicity- the Bahamas is comprised of eighty-five percent black population, twelve percent European population with other groups making the three percent. The Afro-Bahamians are the biggest ethnic group forming a whopping eighty-five percent.
Language- English is the official language in the Bahamas. At times, one might hear Bahamian English i.e. English that has been mixed with the diction of the queen, island dialect, as well as, an African influence.
Traditions- the Bahamas has a rich cultural heritage with a vast diversity of the ways of life. This tradition ranges from its colorful art, soulful dancing, Bahamian cuisine, lively music, Bush Medicine and the Junkanoo. (The Official Site of The Bahamas, 2016)
B. Administration
Government philosophy- the Bahamas is a democratic nation of a constitutional and parliamentary system. Its head is Queen Elizabeth the second with the legal, as well as, political traditions having a close relationship with the United Kingdom.
Currency- the currency of Bahamas is referred to as the Bahamian Dollar.
Population- as at the beginning of 2016, Bahamas’ population was projected to 385,868 people. This was an increase of 0.92% from the previous year. The sex ratio in the country is about nine hundred and fifty-seven males to one thousand females.
The legal system (s) - the legal system of Bahamas is guided by the common law of England. As a result, it is complemented by significant principles of constitutionalism that must be enforced, as well as, observed.
Employment- according to confirmed reports from the Department of Statistics in the Bahamas, the rate of unemployment grew by 1.4% despite the growth in the Bahamian labor force.
Tax rates- the Bahamas does not leverage any tax on personal incomes. However, its residents have an obligation of paying other taxes. As a result, the Bahamian community has always been regarded as a tax haven thus playing host to several rich individuals.
C. Geographic
Map-
Region- the Bahamas is located in both the Western, as well as, the Northern hemispheres. The Atlantic Ocean surrounds the Bahamas with it positioned along the coast of Southeast Florida. It is located in the Caribbean continent.
Climate- generally, the Bahamas experiences maritime dry, as well as, wet weather throughout the year. As a result, there is no frost, sleet, extreme weather or even snow.
Land and sea borders- the maritime borders that are shared by the Bahamas comprises Cuba, US, Haiti and the Caicos Islands located in the United Kingdom.
Natural/climate concerns- the rising sea levels threatens the continued existence of the country by causing a submergence fear. There is also a constant rise in sea level temperatures. (Bahamas.co.uk, 2016)
Energy sources- it primary energy sources lies in the wind and solar potential. On the other hand, it does not have coal, oil or reserves for natural gas.
D. Economic
GDP- the Bahamas has a GDP of nine billion dollars.
GDI- the Bahamas has a high Gender Development Index
Labor force- the labor force of Bahamas is constituted by 49% in tourism, 11% in the industrial sector, 3% participating in agricultural activities and other services making up 37%.
Exports/imports- Bahamas exports salt, chemicals, vegetables, fruits, mineral and animal products. It, on the other hand, imports paintings, iron, steel, motor vehicles and oil.
D. SWOT analysis
A. Strengths
Industries- the major industries existing in the Bahamas encompass tourism, oil refining, production of salt, pharmaceuticals, cement production and the banking sector.
Geography- the Bahamas has a unique combination of ecosystems, as well as, marine features that offer good scenic view and attractions.
Climate- it has an agreeable climate that encourages tourism thus forming an important source of revenue for the country.
Government policies- as a result of the favorable government policies, Bahamas has over the time become an easy target for global investments. There exist favorable legal incentives that hugely attract numerous foreign investors. There is also a streamlining of the bureaucracy of the government.(Cia.gov, 2016)
Energy sources- most of the electricity used in the Bahamas is produced by the Bahamas Electricity Corp. This internal production makes its costs relatively lower.
B. Weaknesses
Geography- the islands in the Bahamas lack natural resources and as a result, they can only source them without the country among its trading partners.
Energy sources- there are few sources of energy in the Bahamas when compared to other nations.
Industries- over concentration on the tourism industry has the propensity of killing other industries in the nation.
C. Opportunities
Growth- the Bahamas has numerous growth opportunities in its tourism and construction sectors. This generates jobs and vacancies for development for its citizens.
Expansion- as a result of the adoption of various market-friendly economic policies, Bahamas has opportunities to expand and diversify its economy thereby depending the benefits from its economic activities.
Cost factors- the absence of taxation on personal incomes together with the low-interest rates chargeable in commercial loans and activities opens up opportunities for the country.
Trade- the Bahamas presents numerous opportunities particularly to foreign exporters. This is because the state will continue with its importation of items for purposes of meeting the demands of the consumer.
D. Threats
Economic- the Bahamas has given a warning that the high costs which have an association with the United States Foreign Account Tax Compliance Act undermine and also threaten its financial industry.
Military-
Terrorism- There are many islands in the Bahamas that are inhabited. This poses a challenge of transnational terrorism because of the porosity of such borders.
Natural disasters- the occurrence of hurricanes and other storms associated with the tropical climate often result in extensive flooding and damages from the wind.
Conclusion
The above article has presented a discussion on the Bahamas. It has enumerated its CAGE analysis that by far provided the conditions for conducting business in the Bahamas. Besides, the SWOT analysis of Bahamas has been offered. The Bahamas offers suitable terms and infrastructures for conducting businesses. The government has additionally lifted custom duties on several goods that are imported thus providing a good a safe environment for commercial activities. Worth noting is the attractive, as well as, a stable climate for investment that has been offered by the government. This has facilitated the effectiveness of carrying out commercial activities in the small country. Therefore, the modern infrastructure, government policies offering investment incentives and a sound regulatory framework all make the state a good place to conduct business.
References
Bahamas.co.uk. (2016). Bahamian Climate | the Islands of the Bahamas. Retrieved 26 February 2016, from http://www.bahamas.co.uk/about-the-bahamas/bahamas-weather/bahamian-climate
Cia.gov. (2016). The World Fact book. Retrieved 26 February 2016, from https://www.cia.gov/library/publications/the-world-factbook/geos/bf.html
The Official Site of the Bahamas. (2016). Our Customs. Retrieved 26 February 2016, from http://www.bahamas.com/customs
