Theoretical framework The worlds economies are becoming increasingly intertwined through the process of globalization.

Cultural, political, legal and economic events in one nation increasingly affect the lives of people in others. It is imperative therefore, that companies pay attention to how their business relationships in these countries are affected by these changes. A decade ago, most national telecommunications markets were dominated by stateowned monopolies and isolated from each other by substantial barriers to cross- border trade and investment. This is rapidly becoming outdated. In this new market, prices are being substantially discounted as telecommunication providers compete with each other for residential and business customers. The rapidly emerging global economy raises a multitude of issues for businesses both large and small in Grenada. Among others, it creates opportunities for revenue expansion, low cost operations and the boosting of profits. Current estimates suggest that global population will continue to expand from six (6) billion today to between nine (9) and eleven (11) billion by 2100. Much of this growth is predicted to occur in the poorer nations of the world. Nations with the poorest infrastructures and lowest personal income are called developing countries. These countries rely heavily on one or a few sectors of production (International business by John J. Wild). A number of sectors contribute to the development of Grenadas economy. Following the passage of hurricane Ivan in 2004, the country witnessed a shift with regard to the contribution made to GDP by each sector. The agricultural sector, which was one of the main income earners for the country, suffered considerable losses during the passage of Hurricane Ivan in 2004. Agricultural production contributed 6.65% to GDP in that year, decreasing to 3.26% in 2005 and has since increased to 5.61% in 2009. Although the sector has enjoyed a certain measure of recovery, there still exists a number of hurdles to overcome. As the global economy continues to show instability resulting in negative adverse impacts on vulnerable, developing countries, the urgency to focus on local agriculture development has become even more essential. Injections

of capital and advanced technology in the form of Foreign Direct Investment have become an important alternative aimed at boosting productivity in the agricultural sector. Tourism has also contributed significantly to the economy of Grenada. Tourism contributed 4.94 % to GDP in 2004 and dropped to 2.24% in 2005 mainly due to the destruction of over eighty-five percent (85%) of the hotels and guesthouses by the hurricane. In recent times, there has been substantial foreign direct investment in new hotel plants mainly in the southern tourist belt of the island. There are substantial opportunities in the Grenada tourism industry given the countrys endowment of a new cruise ship terminal, an increase in the number of flights to the island and the promotion of Grenada as a safe and peaceful destination for visitors and investors alike. This increase in Foreign Direct Investment has significantly increased the quantity of hotel rooms, provided employment for a vast number of Grenadians and generated revenue for the government. By 2009, tourisms contribution to GDP had increased to 4.72%. The construction sector is one of the leading sectors in the country; it contributed (11.42% of GDP in 2004. Following the passage of Hurricane Ivan, this sector GDPs contribution increased considerably to 19.4 percent in 2005. A number of construction weaknesses and shortcomings were revealed with reference to the integrity of the housing stock. The legal and regulatory framework necessary to start and register a business in Grenada were revised and the number of days significantly reduced for processing documents. This amendment saw a considerable increase in the number of licences granted to foreign construction firms originating from countries such as China, Trinidad and Guyana. The manufacturing sector in Grenada is small but has grown significantly in recent years. It has seen an increase in growth of 15% in 2009 comparable to 2004. The sector comprises activities such as the manufacture of soft drinks, beer, rum, wheat flour, animal feed, garments, paper products, paints and varnishes. This increase has occurred mainly been due to Governments encouragement in the form of attractive business incentives and the relaxation of regulations to foster investment. The Special and Differential treatment law, as outlined in article 164 in the Revised Treaty of Chaguaramas, which centres on the suspension of tariffs on community originated goods on the grounds of production in the Lesser Developed Countries.

Telecommunication services are considered the main engine of growth in the Grenada economy in the medium term. Given the countrys english- speaking population, its proximity to the US mainland, time zone affinity and excellent telecommunication network, highlights its growing importance as a viable sector. Today, Grenada boasts a modern state-of-the-art telecommunication sector. LIME is the lone provider of the fixed-line telecom market while the mobile market is being serviced by both LIME and DIGICEL. Other aspect of Grenadas infrastructure has also experienced remarkable improvement over the last decade. There exists a readily available supply of electricity, water, and a comprehensive road network. With regards to security, Grenada enjoys one of the lowest crime rates in the western hemisphere. It also possesses a full postal service, good health care system and an educated and highly skilled work force. Many influential economists are of the view that falling barriers to international trade and investment are the twin engines driving the global economy toward greater prosperity. Some of the benefits to the Grenadian economy include Increased international trade and cross border investment will result in lower prices for goods and services. With the removal of barriers to trade, firms would be able to market their products in the Grenadian economy freely. This increase in supply would lead to a reduction in the price paid by consumers. Another benefit to the economy is the creation of jobs. In 2010, Grenadas unemployment rate stood at an all-time high of 33.3%. With its improved infrastructure and availability of labour, Grenada stands to benefit with regard to firms that are looking to disperse its production activities overseas. Other advantages to the Grenadian economy would be stimulated economic growth caused by the increase in production of goods and services. Improved standards of living and the possibilities of new ways of life are also some of the possible benefits to the citizens of Grenada.

While the emerging global economy creates opportunities for new business entrepreneurs, it also presents some challenges. Firms in the economy may be faced with decisions on how and when to customise their product offerings, marketing policies, human resource practices as well as deal with government regulations. Another challenge of globalization is the plight of business owners who would how to find ways to respond to the threat posed by efficient foreign competitors entering their local markets. With the removal of barriers, many of the infant industries that once enjoyed measures of protection could be forced out of business. As stated by .. In a globalized and liberalized world, interventionist policies can focus on delineating and implementing export promoting policies. He further stated that these policies are virtually non-existent in most CARICOM countries including Grenada. He also noted the fundamental need for the creation of an export culture of which export-training course and programmes are an essential component, with the ultimate aim of improving the productivity of imports.