GCR PPT

AGLOBAL / COUNTRY STUDY REPORT

ON“AUTOMOBILE SECTOR IN FIJI COUNTRY”

SUBMITTED BYBhavin Patel - 107880592037

Piyush Radadiya - 107880592007Leena Raiyani - 107880592010Ashok Rathod - 107880592029

Chintan Raval - 107880592034

PART - IEconomic overview of the Fiji

Demographic profile of the country

Topic Information

Official Name Republic of the Fiji Islands

Capital Suva

Population 839,000

Currency Fiji dollar

Official language English

Date of independence or formation

date

1970

National day Oct 10

Vehicle country identifying code FJI

Internet country identifying code Fj

Main languages spoken Fijian, English, Hindi, Urdu,

Tamil, Telugu

Economic overview of the Fiji GDP $3.19 Billion US dollars

GDP - real growth rate 0.1%

GDP - per capita Purchasing power parity $3.869 billion

Population below poverty line 25.5%

Inflation rate consumer prices 1.6%

Labor force 137,000

Labor force by occupation Agriculture, including subsistence agriculture 70%

Unemployment rate 7.6%

Agriculture products sugarcane, coconuts, cassava (tapioca), rice, sweet

potatoes, bananas; cattle, pigs, horses, goats; fish

Industries Tourism, sugar, clothing, copra, gold, silver, lumber,

small cottage industries

Overview of business and trade at international level

Exports: Imports:

Present trade relations and business volume of different products with India and Gujarat

Fiji’s have good relationship with the Republic of India is often seen by observers against the background of the sometimes tense relations between its local people and the 44 percent of the population who are of Indian descent.

In India has Been used its influence in international forums such as the Commonwealth of Nations and United Nations on behalf of national Indians in Fiji, lobbying for sanctions against Fiji country in the wake of 1987 coups and the 2000 revolution, both of which removed governments, one conquered and one led, by Indo-Fijians.

PESTEL Analysis

Political conditionsFor 17 years after independence, Fiji was a parliamentary democracy. During that

time, political life was dominated by Ratu Sir Kamisese Mara and the Alliance

Party, which combined the traditional Fijian chiefly system with leading elements

of the European, part-European, and Indian communities. The main parliamentary

opposition, the National Federation Party, represented mainly rural Indo-Fijians.

Inter communal relations were managed without serious confrontation.

EconomyFiji is one of the more developed of the Pacific island economies, although it

remains a developing country with a large subsistence agriculture sector. In 2010,

Fiji's economy grew by 0.1%. For 2011, the government forecasts a 2.7% growth

rate.

Socio - cultural

Most of Fiji's population lives on Viti Levu's coasts, either in Suva or in

smaller urban centers. The interior of Viti Levu is sparsely populated due to its

rough terrain. Indigenous Fijians are a mixture of Polynesian and Melanesian,

resulting from the original migrations to the South Pacific many centuries ago.

The Indo-Fijian population grew rapidly from the 60,000 indentured laborers

brought from India between 1879 and 1916 to work in the sugarcane fields.

Technology

FIT is a university based in Fiji. It has 4 campuses in Suva, Ba, Nadi and

Labasa. It was established in 1963 to provide Technical and vocational

education aimed at training students in technical disciplines to meet the

engineering human resource needs of Fiji. It has evolved to providing education

to cater for the total human resource needs of Fiji and the South Pacific.

Ecological

Because fiji is a developing country, there are fewer restrictions and

planning estates for building estates. It has less rigid controls on

pollution than there are in Western Europe countries and is less strict. It

has reduced cost for looking after pollution.

Legislative

Bicameral Parliament consists of the Senate (32 seats; 14 members

appointed by the president on the advice of the Great Council of Chiefs,

9 appointed by the president on the advice of the Prime Minister, 8 on

the advice of the opposition leader, and 1 appointed on the advice of the

council of Rotuma) and, 1 reserved for the council of Rotuma

constituency encompassing the whole of Fiji, and 25 open seats;

members serve five-year terms).

SWOT AnalysisStrengths

Fertile Lands- established industries- Fiji has multiple industries such as

processing and growing cash crops this means that the economy is not

reliant on just one source of income.

A full range of accommodations are available from hostel to 5 star resorts.

Strong awareness of Fiji around the world.

Educated population- literacy levels are high compared to other

competitor islands in the South Pacific. Educational hub for the Pacific.

Strategically placed on route to North America and Asia, expand on being

the “crossroads” of the Pacific.

WeaknessesPolitical instability and security: Fiji rates a poor 3 out of 5 in the UN

political and security scale.

Health risks and problems: Dengue Fever and Malaria are still threats in

the South Pacific. Recently there was a measles outbreak on one of the

islands.

Infrastructure: one of the main weaknesses is the road infrastructure.

Many of them are in disrepair and traffic is very congested.

Pollution: a large population in Fiji means more vehicles. A good

proportion of vehicles are old, there are no regulations on fossil fuel

emissions.

.

ThreatsHeightened air travel security will make flying a less enjoyable

experience. Other emerging destinations could make Fiji less desirable in

the future.

Fiji is still reliant on foreign aid for basic services for healthcare.

OpportunitiesTourism product diversification into new markets. This may include culinary

tourism (schools and tours) and nature tourism such as bird watching.

Other activities may include native village home stay or colonial tourism

(sugar plantations).

Promotion of Fiji to the expatriate Indian market .

PART – II

Chapter -4 Policies and Norms of Selected Country

Policies and Norms of Export and Import in FijiTradeFiji's most important trading parties are New Zealand, Australia, and the US with Pacific Island neighbors Papua New Guinea, Samoa and Vanuatu also having essential trading links. The positive performance from gold, garment, and mineral water are likely to be offset partly by the uncertain contributions from sugar and fish.In the year 2006, exports will be driven by gold industry, timber industry, fruits and vegetables, coconut oil, mineral water and fish.Import levels in the year 2004 show an increase of 9.5 per cent over the year 2003.

Trade Policy

External trading relations increasingly determine the growth and development of the country, and these influence only increases with worldwide moves to free trade and globalization.

Import limits have been mainly lifted in favor of export promotion, and as such Fiji now has a more open economy with better volumes of both exports and imports.

Fiji is a member to a number of bilateral agreement, regional agreement and multilateral trading agreements.

The government is taking full benefit of mutual relations with in India, China, and Malaysia. It will discover possible trade, investment and development assistance from other Asian countries.

ImportTax Free matter for Travelers 250 cigarettes 250g cigars 250g tobacco 4.5 liters of wine 4.5 liters of beer Travelers may import other personal goods providing the total value

does not exceed FH$400. Items of clothing, toiletries, personal computers and other personnel

effects.

Prohibited All species of Birds

 Restricted Food, Plants or parts, camping tools and biological specimens will all require a

special permission from the Ministry of Agriculture and Forestry and Fisheries before entering the country.

Dogs, Cats, and other domestic pets can only be frankly imported by air into the country from New Zealand, Australia and Hawaii.

Export

Prohibited Illegal drugs Pornographic material Weapons, Explosives and ammunition – unless permission has been obtained

beforehand Soil, Sand and rocks Dairy Products

Competitive Taxation for InvestorsThe following are core elements of Fiji’s competitive taxation rule:

Corporate and income tax of 29%; and is scheduled for further reduction to 28% under a Government policy initiative.

Tax holidays for a period of 13 years for New investments in the tax free regions. Exemptions of custom duty on equipments. Export Income Deduction of 50%. Investment Allowances. Industry specific incentives (tourism, mining, audio visual, ship building, fishing,

agriculture, bio fuel production, and the bus industry); Dividend exemption scheme – corporate dividends are taxed only once, avoiding

the duplication involved with taxing both corporate profits and shareholder incomes.

Generous loss-carried forward – a generous eight-year period is offered for business loss carried forward.

Policies and Norms Of Export and Import in India

The automobile market in India was however, opened up to foreign investors in the year 1996. International names like Ford, Hyundai, Toyota, Volvo, Daimler Chrysler and General Motors Honda were thus, able to make their expedition into the Indian automobile sector.

At present, the automobiles sector contributes 4 % to the Gross Domestic Products. About 9.7 million automobiles were manufactured in the year 2005 to 2006. Export figures had crossed the magic figure of one billion during the year 2003-2004.

The policies adopted by the Indian government for the expansion and development of the automotive sector, has lead to a big number of foreign investments.

Terms and Conditions of a License / Certificate / Permission

The quantity, description and value of the goods. Actual User condition. Export obligation. The value addition to be achieved. The minimum export price.

Penalty If a license/ certificate/ permission holder violates any condition of the

license/ certificate/ permission or fails to fulfill the export obligation, he shall be liable for action in accordance with the Act, the Rules and Orders made there under, the Policy and any other law for time being in forces.

Present Trade Barriers for Import Export of Goods

Under sub-section (d) of section 111 and sub-section (d) of Section 113, any goods which are imported or attempted to be imported and exported or attempted to be exported, contrary to any prohibition imposed by or under the Customs Act or any other law for the time being in force shall be liable to confiscation.

Section 112 of the Customs Act provides for penalty for improper importation and Section 114 of the Customs Act provides for penalty for attempt to export goods improperly.

Under section 11 of the Customs Act, the Central Government has the power to issue Notification under which export or import of any goods can be declared as prohibited.

Under Export and Import Policy, laid down by the Director General Foreign Trade, in the Ministry of Commerce, certain goods are placed under restricted categories for trade.

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