Task there is Deaths (01/01/18 to 25/01/18 [251deaths]), Births(01/01/18

Task 1:

A: Malta uses a mixed economy system.

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B: The other two economy systems are Free Trade Economy and Planned


Free Trade Economy; – In this is system in
basses on of a very limited government intervention thus, not restricting on
imports and exports of the country. 

Planned Economy; – This is system in
opposite of the free trade economy, where the government is in control of the
export, imports, sources, production, prices and more.

Mixed Economy; –  Mixed economy is a mix of the private sector
and government work together and come out on what to or not to produce. Example
Malta works with Mixed economy 60% coming from the private sector and 40% from
the government.

Task 2:

Ø  Population and Labour force;

– Population
is 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 –

force is the people employed and people unemployed. They divide the labour
force to people employed as Full time, Part time, Permeant, Temporary and
self-employed and spit into ages and sex, and also people which are not in any
of these categories (unemployed).


Below one can find samples of how these
surveys comparing 2016 and 2017. This is from National Statistics Office of
Malta hosted by MITA.


Reference- https://nso.gov.mt/en/News_Releases/View_by_Unit/Unit_C2/Labour_Market_Statistics/Pages/Labour-Force-Survey.aspx




















Trades is
split into three categories imports (goods
and 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 and
exports records of 2016.


These are record of the biggest percentage
of the imports and exports of Malta in 2016. One can easily find out the
balance of payment when these two records are combined together. 





Sectors of
the industry- There are 3 different types of sectors.

Primary – In this sector one can
find the first stages of production, meaning the natural resource extracted
from the earth. Examples fishing, agriculture, mining and petroleum industry.

Secondary- This stage is when the
raw material that have been extracted from the primary sector will be
manufactured to products. Example food, toys, clothes.

Tertiary- This sector provides the
supply of intangible goods and customer service. Example  Banking, insurance, technical service,

Below one can find an example of how these
sectors are accounted for in the 2016 Central Bank of Malta Annual Report.

Reference- https://www.centralbankmalta.org/annual-reports















policies- These
are regulations from the government to the economy of its nation.

1.       Fiscal Policies- this policy is basically an regulation of the
government spending, taxation and borrowing plans. Below one can see an small
example of a fiscal policy in action taken out of 2016 GDP of Malta.

2.       Monetary policies- This policy is normal controlled from the central
bank of the nation in which it controlled the supply of money, thus to ensure price
to be always stable. (inflation rate or interest rate are
the rates which are mostly concerned on).


Domestic Product- The GDP is a monetary value that calculates the goods produced and
services produced in the country during certain time period. There is a formula
which one can find the basically the economy perforce of the country by using
the 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 of

Reference: – https://www.centralbankmalta.org/annual-reports


Task 3: The economic trends are a definition of where is the society
is heading. Business do research and analyse the trend of the people and thus
answering the needs and wants of so maxims of profits are achieved by operating
in this way through the research. Normal these trends are divided into these
categories in which below I will be going through in each category and will be
explain how these will effect the business markets.

Ø  Ageing population- In this sector there could be an increase and decrease in the ageing

there would be an increase in ageing population
will increase in the consumption and more demand in new innovates products,
thus creating a linked chain in connection with more investment and can as well
create problems as there would be more demand in work force. There could be
cases in where the government can intervene to help investors with educating
the current work force so it would be easier for the investors to find people
for the investment their going to invest in.

the other hand there could be a decrease
in the ageing population that will affect the economy system in a way the
opposite of when there would be increasing in ageing. Less demand, less
investment, decrease in consumption and possibility of unemployment are the
factors which in an economy system will face when there is a decrease in the
ageing population. 

Ø  Female work force- When there is a change in employment there is going to be an increase and
decrease in the economy system. If we take an example in more female work force
there would be an increase in the income of the country, but how?

1.      Investments in different need and
wants of the people, example higher demand of childcare units.

2.      Businesses need to invest more to be
up in the completion with different firms to supply the higher demand.

3.      There would be higher demand once
businesses are supply their new investments, thus female work force can be
employed for these sectors

On the other hand if these going to be a decrease in the
female work force it going to back lash the opposite way.

1.      Less people thus less investment.

2.      As the consumption will get lowered
it will affect the supply as lack of demand.

3.      Obviously the economy will be
affected as now with the decrease in the female work force and the factors that
previously mentioned there is going to be higher cost, higher prices, less
completion as lack of investments and a major factors is that there would be no
economy of scale.

Foreign Investments- This investment is basically a
foreign investment in another country.

When there is an increase in the foreign investment there is
a 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 new
businesses will result of more competition between firms as the number is
getting bigger, better quality the result from more competition and lowering of

3.      The nation will be more skilled as
there would be new requirement for the new markets of products and services
which are introduced to the country.

4.      These factors will result of increase
in the GDP bearing in mind with the new government policies and regulation.

                            Without these new
foreign investments one can find multiple decreases in

1.      Less employment and not highly
skilled employees.

2.      Lack of innovation in new markets and
better 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 to
protect the people and ensure just treatments.

2.      Health,
education and welfare are some examples which the government’s responsibility
to provide the nation with.

3.      The
government also has to manage the economy to ensure growth in the economic
system and the management of the national debt.

examples on how the government may affect the business markets are:

Ø  Introducing taxes on sugary drinks. Less
consumption of sugary drinks, more costs and need of alternatives thus more
investments are needed.

Ø   Offering
free health service to help people who smoke. Reduction of health issues,
Healthier employees, areas which were used as smoking areas can be used for a
different use to help the business.

Task 5:

1.      Exchange rates- When
there is a change in the rates businesses will be affected in the costs of
imports and exports.

2.      Advances in technology-  Changes in technology to remain
competitive can result in unemployment and new training type for new employment,
thus resulting more investment which leads to higher costs and not only for the
employment will affect the higher costs even also for the expenditure of the
advancements of the new markets.

3.      War and Terrorism- If a
country has these types of certainties for investments to be done are very
difficult as businesses will be unwilling to risk their investment in an area
of risk.

4.      Environmental issues- Due to
global warming laws and standards are being introduced so to focus on
environment friendly practices. Resulting on higher cost to keep up with the
laws and standards.

                      Task 6:

1.      Malta Medicines Authority-

Ø  It provides
a regulated supply of chain of medicines which are of good quality and
standards for the local market.

Ø  Inspection
and monitoring of the quality of the products for the pharmaceutical

Ø  Relevant
legislation to be enforced and monitored.

Ø  Scientific
and regulatory advice so to suppost on the competitiveness of the local market.

2.      Malta Tourism Authority-

Ø  Promotion and
advance in the tourism destination to Malta.

Ø  To notify
and advise the government on the operational system of tourism of Malta.

Ø  Contribution
to improve the level of human resources in the tourism industry of Malta.

Ø  While the
government would have plans in development of the tourism industry and the
infrastructure, it’s the deed of the authority to give advice to the government
in the planning of the developments that have to do with tourism.

3.      Malta stock exchange-

Ø  Stock
prices, indices and international markets have to be all provided but the Malta
stock exchange.

Ø  Enable
trading of shares.

Ø  Savings and
investments promotions.

Ø  Contributes
to the economic growth.



1.      One year free buses pass for those aged between 16 and 20.

of vehicles on roads.

of toxic waste as fewer vehicles may be used due to the measure.

would help to students to encouragethem study thus help the businesses in

would be investments in spot check o to avoid irregularities. 



2.      Exemption from registration tax on electric, hybrid
and similar vehicles.

with same level of different countries, regarding on switching to these types
of vehicles.

incentive is done so more use of these types of vehicle be used.

of high emission, thus help the to participate in environmental friendly

in abusing this system so costs for Investments in regulations.

investments in parking areas for these type of vehicles and charging points.

3.      Free school transport for next scholastic year and
reduction in Matsec and SEC exam fees.

male and female work force to be employed and working.

usage of vehicles. One van carrying 18 people instead of 18 cars.

traffic and high emmions.

to help students to study and do exams so to help businesses to employ skills

taxation 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 its
products. It also produces only 20% of the food needed for the nation.

2.      Malta has a very weakness in tax corruption, money laundering and
especially tax heaven which the EU what’s ‘Malta to be UE tax heaven
blacklisted'( 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-

has a very high income from tourism.
In 2013 1.6 million tourist visited Malta and bearing in mind the Maltese
population 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/

very good employment percentage the
third lowest in the EU of unemployment. In 2017 the percentage of unemployment
was 4.1%. Example comparing it with Spain, Spain has 17.8% of unemployment in