Final answer:
The Cayman Islands have become a significant hub for offshore banking and financial services, contributing to a high standard of living for its residents. Option C.
Step-by-step explanation:
Numerous companies, including several hundred banks and the world's four largest legal and accounting firms, are located there, at least on paper. The proliferation of offshore accounts in the Caymans offers tax havens for entities seeking to avoid paying taxes in their home countries and provides privacy since these centers typically do not share account information with foreign tax authorities. Despite international pressures to increase transparency, the Cayman Islands and other Caribbean islands continue to attract global capital due to these financial services.
Furthermore, tourism plays a crucial role in creating economic development in the Caribbean. The influx of tourists, including those from cruise ships, provides income to local businesses, although the major profits often go to international corporations or the local wealthy elite. The dependency on tourism can lead to disparities between visitors and local workers, and while it supports the economy, it can also introduce environmental and infrastructural strains. Option C.