Understanding Guatemala's Economy

What is the main goal of Guatemala's economic policy?

• To focus solely on attracting foreign investment.

• To increase foreign debt and dependency.

• To promote sustainable economic growth and reduce poverty.

• To prioritize industrialization over agriculture.

How does Guatemala's economic policy aim to reduce poverty?

• Focusing solely on foreign investment without local support

• Limiting access to education for rural areas

• Increasing taxes on small businesses

• Guatemala's economic policy focuses on inclusive growth, education access, support for small businesses, and social protection to reduce poverty.

What are the key components of Guatemala's foreign trade policy?

• Promotion of exports, foreign investment attraction, free trade agreements, tariff reductions, and trade facilitation.

• Complete isolation from international markets

• Increased import tariffs on all goods

• Mandatory government ownership of all export businesses

Which international treaties has Guatemala signed to promote trade?

• Trans-Pacific Partnership (TPP)

• North American Free Trade Agreement (NAFTA)

• World Trade Organization (WTO) agreements

• Central America Free Trade Agreement (CAFTA-DR), Association Agreement with the European Union, bilateral trade agreements with Mexico and Chile.

How does Guatemala benefit from its participation in CAFTA-DR?

• Guatemala benefits from increased market access, reduced tariffs, and economic growth.

• Guatemala's economy shrinks due to CAFTA-DR participation.

• Guatemala becomes isolated from international trade agreements.

• Guatemala loses market access and faces higher tariffs.

What role does the Ministry of Economy play in trade negotiations?

• The Ministry of Economy plays a crucial role in formulating trade policies and negotiating trade agreements.

• The Ministry of Economy does not participate in international trade discussions.

• The Ministry of Economy only oversees domestic economic policies.

• The Ministry of Economy is responsible for enforcing trade laws.

What are the main challenges facing Guatemala's foreign trade?

• Strong international partnerships

• Abundant natural resources

• Limited infrastructure, high transportation costs, trade barriers, reliance on a narrow range of exports, and vulnerability to external economic fluctuations.

• High levels of foreign investment

How does sustainable development influence economic policies in Guatemala?

• Sustainable development promotes eco-friendly initiatives and social equity in Guatemala's economic policies.

• Sustainable development leads to increased pollution and resource depletion in Guatemala.

• Sustainable development focuses solely on industrial growth in Guatemala.

• Economic policies in Guatemala are unaffected by environmental concerns.

What initiatives has Guatemala implemented to promote sustainable agriculture?

• Agroecological practices, organic farming support, soil health improvement programs, and farmer training initiatives.

• Monoculture crop promotion

• Chemical pesticide subsidies

• Deforestation incentives

Why is the agricultural sector crucial for Guatemala's economy?

• The mining sector provides the most jobs.

• The agricultural sector is vital for employment, GDP contribution, exports, and food security in Guatemala.

• Tourism is the main driver of the economy.

• It primarily focuses on industrial manufacturing.