Commercial Law - the United Arab Emirates - Assignment Example

Name: Instructor: Course: Date: Commercial Law Task 1 Vocabulary VOCABULARY WORD DEFINITION Transnational institutions These are many different trade-related business entities that operate in at least two countries. Their headquarters usually is based in one country and many other facilities based in different countries across the world. These transnational institutions include may include, but not limited to: UN, WTO and IMF. General Agreement on Tariffs and Trade This was an agreement between many countries to regulate trade by reduce tariffs and other trade barriers (www.WTO). The General Agreement on Trade and Tariff (GATT) also involves Intellectual Property (IP) rights European Union A joint effort of 27 European countries that form a jointly beneficial community both economically and politically is what is now called European Union. The EU is known to have helped in uniting Europe itself and helps other developing countries economically. Import control Import control is a kind of trade restriction on imported goods and services into the country. Copyright This is a document giving exclusive rights to an individual, a business organization or a legal entity to work. Trademark A trademark can be defined as a distinctive sign (indicator) used by an individual or business organization to identify for customers that the goods and services on which that sign appears came from a source meant for a specific market and goods or services are different from those of other entities. Or in short, a trademark is a sign that uniquely differentiate a particular company or individual from others. Inflation Inflation is defined as a widespread increase in prices for goods and services and it may occur over an extended period of time. Inflation reduces the value of money and this will force consumers to spend more on goods and services. WTO World Trade Organization (WTO) is an organization with a goal to manage and liberalize international trade. Its other aims are to help producers of goods and services, exporters, and importers conduct their business fairly as per trade rules. IMF IMF is an international organization with the goal of promoting the maintenance of a healthy world economy. Trade sanction Trade sanctions are penalties charged by one country against one or more countries in order to achieve economic policy, political or military objectives. Quota system A quota system is where an individual or an organization targets a certain sales volume from selling goods within a given time. Patent A patent is a form of intellectual property. It is all about exclusive rights (protection) given by a country to an inventor for a limited period of time, and this protection is a very important part of any new invention. GDP Gross domestic product (GDP) is the total market value of all goods and services produced within a country over a given period of time, usually a year. Unemployment Unemployment means to the incapability for willing workers to find an employment. Workforce Work force is the total pool of workers who are ready and willing to work. These include both job seekers (unemployed) and people who are employed. Gdp/capita This is usually refers to a group of people and some form of income either earned or spent. Poverty Poverty can be defined as the state of lacking resources that would provide people with basic necessities. Poverty can force people to go without basic needs like food, clothes and shelter. Taxation Taxation is to impose a financial charge upon individuals or entities by a country (state) and whoever fails is punishable by law. Monetary system A monetary system is a system developed by a government to make easy exchange and also generate and measure wealth and debt Rule of law The rule of law is the basis of the justice system of a country whereby no one is above the law and everyone is equal under the law. Labor law Labor law is the body of administrative rulings (laws) that are designed to protect employees. Privatization Privatization is a situation where by a government transfers its control public owned property to the private business sector. Emiratisation Emiratisation is a plan by the government of the United Arab Emirates to provide jobs for its own citizens. Gratuity A gratuity is a small amount of money given to a service worker as a gift in recognition for his/her service Website used: www.wisegeek.com Task2 Country business profile The United Arab Emirates (UAE) is currently on its rapid expansion process, with Emirati governments helping both in public and public-private ventures by spending the proceeds of high oil prices and international investments in the region. They have not only increase in availability of funds, but invest in human capital and in improving in the rapid growth of the non-oil sector. The UAE has been a regional leader when it comes to economic and innovative plans since it was established as a Federation ( http://exim.indiamart.com/country-profiles/uae.html). Business and economic data for the 6 GCC countries and 4 other countries. Country GDP exchange rate Population GDP per capita Inflation rate Unemployment rate YOUTH School life Workforce UAE $360.1 Billion 5,314,317 $48,800 0.9% 12.1% 13 years 4.1 Million Kuwait $176.6 Billion 2.818 Million $62,700 4.7% 2.2% 2.4 Million Qatar $173.0 Billion 1.9 Million $92,500 1.9% 0.5% 1.4 Million Saudi Arabia $576.8 Billion 28.1 Million $20,500 5% 10% 7.64 Million Oman $71.8 Billion 2.8 Million $25,200 4.1% 15% 920,000 Bahrain $22.9 Billion 1.34 Million $18,200 -0.4% 3.8% 655,000 Yemen $33.8 Billion 24.8 Million $1,400 16.4% 35% 6.5 Million Egypt $229.5 Billion 82.5 Million $2,800 10.1% 12% 26.1 Million Iran $331.0 Billion 74.8 Million $4,500 20.6% 12.4% 25.7 Million Israel $242.9 Billion 7.8 Million $31,300 3.5% 5.6% 3.2 Million Website used: www. worldbank.org Task 3 Import quotas, tariffs and duties are usually imposed by governments to imported goods so as to protect home industries from failing against international giant industries which they usually sell high quality products at cheaper prices. Import quotas and tariffs also hurts those poor countries in one way or the other, because they do not have their own industries to protect and as such will hurt its citizens for they will not be a position to buy high tariff expensive imported goods and services. Therefore, import quotas, tariffs and duties can lower the standard of living of poor citizens. Free trade is usually preferred by poor and developing countries because there is no trade controls for goods and services they import. Generally, poor nations export less than they import and this means any kind of tariffs, quotas or import duties impose on goods and services entering to country will always hurt the standard of living of the citizens of the country. This is because most goods and services into the country will be reduced by high tariffs impose on them. Due to this, individuals or organization will not be willing to pay for goods and services with high tariffs, quotas and import duties, hence decrease welfare of domestic consumers. High tariffs and quotas means that the prices of goods and services entering into the country will be higher (expensive), hence the total goods into the country will be reduced and this means the demand for those goods will shoot up and this will drive prices up and consumers' purchasing power is affected. As we have mention above, the aim of import quotas and tariffs is to encourage domestic production that can boost local economies. Import tariffs, quotas and other import duties have been known to contribute or create a black market for products. This is because consumers will turn to illegal methods of obtaining the goods they desire without import duties. Every country collects revenues so as to support its functions economically. Placing more import tariffs on foreign goods is one way getting more revenue, but in developing countries, corrupt officials may take an advantage of this and imposing any duties on imported goods is of no help to the economy (standard of living). Therefore imposing duties like quotas and tariffs on imported goods does not help the standard of living of poor countries with corrupt leaders. Task 4 What decides the standard of living for a nation is a combine measurement of various conditions like education, healthcare and purchasing power. It is different from other related measures like quality of life which relies on other factors like leisure opportunities and happiness. 1. Make a table similar to the one below and list each item above in the table. Standard of living items Measurable Non measurable Population Local culture Literacy rates Consumer sentiment Taxation Transportation GDP Education levels Balance of Payments Employment Electricity produced (Utilities) Legal System Poverty levels Access to technology Crime Rate Banking System Availability of Credit Political System Physical Environment Inflation Medical system Consumer expectations Family Possible presentation questions: 1. What is a Standard of Living? Standard of living is generally the measure of the total fiscal health of all the population of the country if they get enough of basic needs like food, shelter and clothing. 2. Why does each country have a different standard of living? Every country have different GDP hence different standard of living. GDP of a country serve as an economic tool to determine the standard of living. 3. How do laws for business and the rule of law increase the standard of living? The rule of law simply means no one is above the law and everyone is equal under the law, therefore, there is no corruption and the country’s economic development is well distributed fairly between its citizens, hence better standard of living. 4. Are you familiar with the terms: Developed World Countries? These are countries with political stability, economic stability and a high standard of living. Third World? These are less economically developed nations and with no societal or technological infrastructure to support higher living standards for its citizens (Chaliand, 2013). Developing Countries? Generally, developing countries are poor but wealth and luxury can still be found in almost all developing countries. However, the little wealth and luxury they have concentrates more among a small portion of the population. Which category is the UAE placed in? Why? UAE is a Third world country even though it has improved a lot economically in the last few years. It is still a third world country because its economic still depend on the other advanced countries and its wealth has not been distributed fairly between its citizens. Works cited Chaliand, Gerard. “THIRD WORLD.” Definitions and Descriptions: Retrieved on 20th May, 2013 from http://www.thirdworldtraveler.com/General/ThirdWorld_def.html. Print. Worldbank.org retrieved on 24th November, 2012 from http://www. worldbank.org. Print. http://datacatalog.worldbank.org/ http://exim.indiamart.com/country-profiles/uae.html.Print http://www.wisegeek.com Read More