Trinidad has sought to diversify its economy by creating a cluster of petrochemical businesses in Point Lisas Industrial Estate (PLIE). The case is written from the perspective of a potential entrant trying to evaluate the opportunities and challenges that may confront a business that decides to locate in Trinidad. Challenges include the uncertainty about government policies, particularly future pricing policies for oil and natural gas, and the possibility of obtaining financial concessions from the government. Environmental and societal issues also loom in the future, and local citizen groups could react negatively towards the growth of PLIE with its implications for land prices and the nature of the economy. The focus of petrochemical businesses in Trinidad will inevitably be export, and various trade agreements determine the terms and conditions under which a Trinidad company can export to various potential customers. Also of importance will be projected changes in Trinidad's foreign exchange rate. Trinidad's natural gas reserves are relatively small compared with many other countries. Venezuela offers an attractive alternative location in regard to the availability and cost of oil and natural gas, and so the case compares the environment of business in Trinidad with that in Venezuela.
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