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Business Environment of Gulf Cooperation Council for Foreign Direct Investment - Research Paper Example

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This research paper outlines the business environment for foreign direct investment in the GCC. This paper demonstrates the background of the company, international trade in business, FDI in developing economies, and marketing strategy for new business in the UAE…
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Business Environment of Gulf Cooperation Council for Foreign Direct Investment
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Download file to see previous pages Foreign investment basically means the gap in a country’s requirement for investment and its savings rate (Yuang, 1998 p.63). The host country for FDI stands to benefit in a number of ways in terms of capital formation, export diversification, technology import, management system improvement, and enhanced market competition, infrastructure development to support economic activity, financial sector growth and markets development (OECD, 2001 p.13).
FDI is a powerful engine in helping to achieve country objectives such as those about poverty reduction, development, and international integration, and it is perceived to be an international investment route that most developed economies have embraced. Low-income countries in Africa, for example, have not taken this advantage and are thus being excluded from the globalization benefits of FDI. This research paper seeks to explain general aspects of international trade and economic blocs as well as critically evaluate the economic environment for FDI in the United Arab Emirates focusing on business risk for a firm keen on investing in UAE and considering key aspects of the international business environment such as culture, ethical practices, legal systems, purchasing power, income, consumption patterns, taxes, infrastructure, economic prospects and stability in general among others. Picking on a specific product or service, the paper will explain distribution and marketing strategies and provide guidance on the extent to which the firm’s performance may be put at risk based on the last five years.
International trade deals with the dynamics around the movement of goods and services including intellectual property across country borders and it affects not only a country’s economic, social and political wellbeing but also the effect on the global situation. At the country level, international trade causes changes on the currency value thus exposure to forex risks; the balance of payments position i.e. exports and imports level, growth of the financial sector among others. ...Download file to see next pagesRead More
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