1. It is important to measure the inflation rate of the country, because it helps the authorities to assess the purchasing power of money, overall change in the cost of basket of goods and services to be consumed by the average person in the country and its impact upon the pocket of the consumers, exchange rate and the value of imports and exports. On the basis of these inputs, the government readjusts the payment done under the welfare schemes, allowances, unemployment benefits so that these welfare benefits and other initiatives are in line with the movement in price level. Besides, government also takes initiatives to stabilize the price level and take suitable initiatives.

Belize's inflation rate impacts strongly to the consumers, as with the increase in price level, value of the basket of goods and services for consumption increases and, consumers have to pay more money to maintain the same level of consumption. It will cause decrease in savings for the consumer and real value of money decreases. So, it suffering to the consumers takes place. For example, a basket of goods and services for consumption, costed $1000, last year and the same basket, it is valued at $1100 in this year.

It means an inflation rate = (1100-1000)/1000 = 10%

So, consumers need to pay $100 more (10% more) to pay to get the same basket as that of last year. It reduced the savings for consumers.

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The main things to consider while deciding to invest in any foreign country are its economic and political environment. The main considerations include the wage rates, availability of skilled labour, exchange rates, tax rates, access to transport and infrastructure, consumer base, economic and political stability, and access to free trade areas. Most investors want to set up firms in a country where labour costs are low, but skilled labour is available. They also look out for low corporation tax rates in the country. Better transport and infrastructure enables easy movement of inputs and goods. A lower value of the country's currency also makes the investment cheaper. The existence of a large population with purchasing power also attracts investment as it will provide a consumer base.