Task 1: A: Malta uses a mixed economy system.
B: The other two economy systems are Free Trade Economy and PlannedEconomy. C: Ø Free Trade Economy; – In this is system inbasses on of a very limited government intervention thus, not restricting onimports and exports of the country. Ø Planned Economy; – This is system inopposite of the free trade economy, where the government is in control of theexport, imports, sources, production, prices and more. Ø Mixed Economy; – Mixed economy is a mix of the private sectorand government work together and come out on what to or not to produce. ExampleMalta works with Mixed economy 60% coming from the private sector and 40% fromthe government. Task 2: Ø Population and Labour force; – Populationis the number of people in a nation and changes occurs when there is Deaths(01/01/18 to 25/01/18 251deaths), Births(01/01/18 to 25/01/18 256) and Migration(01/01/18 to 25/01/18 86) . Reference -http://countrymeters.
info/en/Malta/ -Labourforce is the people employed and people unemployed. They divide the labourforce to people employed as Full time, Part time, Permeant, Temporary andself-employed and spit into ages and sex, and also people which are not in anyof these categories (unemployed). Below one can find samples of how thesesurveys comparing 2016 and 2017. This is from National Statistics Office ofMalta hosted by MITA. Reference- https://nso.gov.
mt/en/News_Releases/View_by_Unit/Unit_C2/Labour_Market_Statistics/Pages/Labour-Force-Survey.aspx – -InternationalTrades issplit into three categories imports (goodsand services bought from other countries), exports(goods and services sold to other countries), and balance of payment (the record system of the export and imports.The inflow and out flow of the country’s differences).
Below are some examples of the imports andexports records of 2016. These are record of the biggest percentageof the imports and exports of Malta in 2016. One can easily find out thebalance of payment when these two records are combined together. Reference;https://atlas.media.mit.
edu/en/profile/country/mlt/#Exports Sectors ofthe industry- There are 3 different types of sectors. 1. Primary – In this sector one canfind the first stages of production, meaning the natural resource extractedfrom the earth. Examples fishing, agriculture, mining and petroleum industry. 2. Secondary- This stage is when theraw material that have been extracted from the primary sector will bemanufactured to products. Example food, toys, clothes.3.
Tertiary- This sector provides thesupply of intangible goods and customer service. Example Banking, insurance, technical service,entertainment. Below one can find an example of how thesesectors are accounted for in the 2016 Central Bank of Malta Annual Report. Reference- https://www.centralbankmalta.org/annual-reports Governmentpolicies- Theseare regulations from the government to the economy of its nation. 1.
Fiscal Policies- this policy is basically an regulation of thegovernment spending, taxation and borrowing plans. Below one can see an smallexample of a fiscal policy in action taken out of 2016 GDP of Malta.2. Monetary policies- This policy is normal controlled from the centralbank of the nation in which it controlled the supply of money, thus to ensure priceto be always stable.
(inflation rate or interest rate arethe rates which are mostly concerned on). GrossDomestic Product- The GDP is a monetary value that calculates the goods produced andservices produced in the country during certain time period. There is a formulawhich one can find the basically the economy perforce of the country by usingthe following: GDP = C + I + G + (Ex – Im) where “C” equals spending by consumers, “I” equals investment by businesses, “G” equals government spending and “(Ex – Im)” equals net exports, that is, the value of exports minus imports. Reference for formula: https://in.answers.yahoo.com/question/index?qid=20080302105852AATnQSK Here is an example of the Malta GDP of2016 Reference: – https://www.centralbankmalta.
org/annual-reports Task 3: The economic trends are a definition of where is the societyis heading. Business do research and analyse the trend of the people and thusanswering the needs and wants of so maxims of profits are achieved by operatingin this way through the research. Normal these trends are divided into thesecategories in which below I will be going through in each category and will beexplain how these will effect the business markets. Ø Ageing population- In this sector there could be an increase and decrease in the ageingpopulation. Whenthere would be an increase in ageing populationwill increase in the consumption and more demand in new innovates products,thus creating a linked chain in connection with more investment and can as wellcreate problems as there would be more demand in work force. There could becases in where the government can intervene to help investors with educatingthe current work force so it would be easier for the investors to find peoplefor the investment their going to invest in.
Onthe other hand there could be a decreasein the ageing population that will affect the economy system in a way theopposite of when there would be increasing in ageing. Less demand, lessinvestment, decrease in consumption and possibility of unemployment are thefactors which in an economy system will face when there is a decrease in theageing population. Ø Female work force- When there is a change in employment there is going to be an increase anddecrease in the economy system. If we take an example in more female work forcethere would be an increase in the income of the country, but how? 1. Investments in different need andwants of the people, example higher demand of childcare units.2. Businesses need to invest more to beup in the completion with different firms to supply the higher demand.3.
There would be higher demand oncebusinesses are supply their new investments, thus female work force can beemployed for these sectors On the other hand if these going to be a decrease in thefemale work force it going to back lash the opposite way. 1. Less people thus less investment.2. As the consumption will get loweredit will affect the supply as lack of demand.
3. Obviously the economy will beaffected as now with the decrease in the female work force and the factors thatpreviously mentioned there is going to be higher cost, higher prices, lesscompletion as lack of investments and a major factors is that there would be noeconomy of scale. Foreign Investments- This investment is basically aforeign investment in another country. When there is an increase in the foreign investment there isa good number of factors that will affect the economy system in Malta exmaples.
1. Higher number of investments,employed people and more consumption of products and services.2. The more the investments in newbusinesses will result of more competition between firms as the number isgetting bigger, better quality the result from more competition and lowering ofprices.3. The nation will be more skilled asthere would be new requirement for the new markets of products and serviceswhich are introduced to the country. 4.
These factors will result of increasein the GDP bearing in mind with the new government policies and regulation. Without these newforeign investments one can find multiple decreases in1. Less employment and not highlyskilled employees.2. Lack of innovation in new markets andbetter quality in products and services.3.
Decrease in the GDP of Malta. Task 4: The role of the Maltese government is some of these points below: 1. Law,order and defence have to be provided by the government responsibilities toprotect the people and ensure just treatments.2. Health,education and welfare are some examples which the government’s responsibilityto provide the nation with.3.
Thegovernment also has to manage the economy to ensure growth in the economicsystem and the management of the national debt. Twoexamples on how the government may affect the business markets are: Ø Introducing taxes on sugary drinks. Lessconsumption of sugary drinks, more costs and need of alternatives thus moreinvestments are needed.Ø Offeringfree health service to help people who smoke. Reduction of health issues,Healthier employees, areas which were used as smoking areas can be used for adifferent use to help the business.Task 5:1. Exchange rates- Whenthere is a change in the rates businesses will be affected in the costs ofimports and exports. 2.
Advances in technology- Changes in technology to remaincompetitive can result in unemployment and new training type for new employment,thus resulting more investment which leads to higher costs and not only for theemployment will affect the higher costs even also for the expenditure of theadvancements of the new markets. 3. War and Terrorism- If acountry has these types of certainties for investments to be done are verydifficult as businesses will be unwilling to risk their investment in an areaof risk.4.
Environmental issues- Due toglobal warming laws and standards are being introduced so to focus onenvironment friendly practices. Resulting on higher cost to keep up with thelaws and standards. Task 6: 1. Malta Medicines Authority- Ø It providesa regulated supply of chain of medicines which are of good quality andstandards for the local market. Ø Inspectionand monitoring of the quality of the products for the pharmaceuticalactivities. Ø Relevantlegislation to be enforced and monitored.
Ø Scientificand regulatory advice so to suppost on the competitiveness of the local market.2. Malta Tourism Authority-Ø Promotion andadvance in the tourism destination to Malta.Ø To notifyand advise the government on the operational system of tourism of Malta.Ø Contributionto improve the level of human resources in the tourism industry of Malta.Ø While thegovernment would have plans in development of the tourism industry and theinfrastructure, it’s the deed of the authority to give advice to the governmentin the planning of the developments that have to do with tourism.
3. Malta stock exchange-Ø Stockprices, indices and international markets have to be all provided but the Maltastock exchange.Ø Enabletrading of shares.
Ø Savings andinvestments promotions.Ø Contributesto the economic growth. Task7: 1. One year free buses pass for those aged between 16 and 20.
· Reducingof vehicles on roads.· Reductionof toxic waste as fewer vehicles may be used due to the measure.· Thiswould help to students to encouragethem study thus help the businesses inMalta.
· Therewould be investments in spot check o to avoid irregularities. 2. Exemption from registration tax on electric, hybridand similar vehicles.· Remainingwith same level of different countries, regarding on switching to these typesof vehicles.· Thisincentive is done so more use of these types of vehicle be used.· Reductionof high emission, thus help the to participate in environmental friendlycountry.
· Riskin abusing this system so costs for Investments in regulations. · Moreinvestments in parking areas for these type of vehicles and charging points. 3. Free school transport for next scholastic year andreduction in Matsec and SEC exam fees.· Helpingmale and female work force to be employed and working.
· Lessusage of vehicles. One van carrying 18 people instead of 18 cars. · Lesstraffic and high emmions.· Encouragementto help students to study and do exams so to help businesses to employ skillspeople. · Highertaxation so to the transport fee be paid to the drivers. Task 8: Two weakness in the Maltese economy- 1.
In Malta there is very high imports approximate 80% of itsproducts. It also produces only 20% of the food needed for the nation. 2.
Malta has a very weakness in tax corruption, money laundering andespecially tax heaven which the EU what’s ‘Malta to be UE tax heavenblacklisted'( As per the on Malta today http://www.maltatoday.com.mt/news/europe/82589/oxfam_even_malta_should_be_included_in_eu_tax_haven_blacklist#.
Wm-EMainHIU) Two Strengths in the Maltese economy- 1. Maltahas a very high income from tourism.In 2013 1.6 million tourist visited Malta and bearing in mind the Maltesepopulation is 450k. It takes part of a very good percentage in the GDP of 15%.
Reference- https://prezi.com/utfcgo9s45vb/strengths-and-weaknesses-of-the-maltese-economy/2. Avery good employment percentage thethird lowest in the EU of unemployment. In 2017 the percentage of unemploymentwas 4.1%. Example comparing it with Spain, Spain has 17.
8% of unemployment in2017. Reference-http://www.independent.com.mt/articles/2017-05-31/local-news/Malta-retains-third-lowest-unemployment-rate-in-EU-6736174944