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Global prespective - Essay Example

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MEMO To: Name Work Position From: Name Export/International Business Development Director Subject: Opening a business branch in Qatar Date: Political Situation Qatar is an absolute monarchy with the Al Thani dynasty being in power since the country's independence from Britain in 1971…
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Global prespective
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Global prespective

Download file to see previous pages... The country observes a blend of common and Sharia laws, but the latter are only applied in family law and punishment of various grave crimes. The country has been described as one of the most stable Middle Eastern economies with a relatively good security situation. Since the Gulf War in which the country was involved, Qatar has been a peaceful haven for business activities in the area. The government plays a huge role in the determination of what businesses should or should not run. The government has in recent times executed heavy censorship in the liquor and food businesses to the point of being authoritarian where different liquor businesses have been closed and no explanation offered for the same. Other businesses have, however, been running independently. The country has good bilateral relationships with the United States and there are many US companies operating in the area, hence it will be easy to establish our operations. American workers and companies face a little discrimination in the country as the country's leadership attempts to maintain a pious image elsewhere while projecting the West as corrupt. There are, however, no incidences of extreme fundamentalism. Economic Systems and Situation Qatar's economy is hugely oil-based. The country has huge oil reserves that are estimated to continue at least for another century. The country has attempted to diversify from petroleum although it still accounts for more than 50% of the country's Gross Domestic Product. The country embraces the ideals of free trade with limitation to business enterprises that have a connection with the Sharia law. The country has an effective tertiary industry with easily accessible banking and insurance services. The Qatar financial center affords financial institutions globally competitive services, capital support and interest free loans (“World's Richest Countries”). The country has a cheap and efficient road transport owing to the low prices of petroleum and a word-class road network. Communication is as well developed with good Internet and telephone coverage. The country has a good number of local and international media stations. Labor Laws The government prohibits labor unions and industrial strikes. There are also unfair working relations where migrant workers are paid less than citizens for the same job qualification. This has led to issues that affect companies in the region negatively as they follow payment schemes in the same way that the government does. Purchasing Power Qatar is the richest country in the world in terms of GDP per capita. The business magazine Forbes ranked Qatar 1st in 2010 GDP per Capita in 2010 and reported that the country recorded 19 per cent economical growth, which was the highest in the year in the world. Increase in exports of liquefied oil, natural gas, petrochemicals, and diversification of products in related industries are credited for this. In terms of human development, Qatar is the second-highest in the Middle East and North Africa region, only second to the U.A.E. In 2009, United States made its fifth-largest export in the Middle East in Qatar, surpassing earlier more favorite export markets such as the U.A.E., Saudi Arabia, Israel, and Egypt (“World's Richest Countries”). Cocona Fabrics, established in the late 2005, has come up with fast-drying fabrics that effectively protect against ultraviolet rays and manage sweat and other ...Download file to see next pagesRead More
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