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Supply HW - Essay Example

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Introduction: Dubai has been a hub of trade for the region. It has achieved this status through grabbing opportunities at vital moments, investing in infrastructure, and keeping in mind the broader picture. The government of Dubai, which is run by the royal family, is free from the pressure of satisfying the population’s short term needs, as a result of which they can take on capital intensive projects whenever they feel that there is a need arising for them…
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Supply HW
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Download file to see previous pages It offers access to many regions and nations of the world; this fact alone can be a very attractive feature from the point of view of logistics companies. Even the forecasted economic growth is creating an increased utility for logistics services in the region. This is a very encouraging point for the logistics companies, which have to muster a substantial amount of capital outlay when initiating their operations in Dubai. However, the current space constraint of the Dubai International Airport is proving to be a very costly constraint for the logistics companies and freight forwarders. Both these parties require more space in order to expand the horizon of their operations, but since the airport has literally come into the city, there is no scope for expansion there. However, as mentioned earlier, the royal family never fears a huge capital outlay when devising expensive projects; therefore, the royal family has decided to sponsor the construction of a Dubai Logistics City. This city will be located near Jebel Ali port and will be complemented with a Jebel Ali airport. These initiatives will allow logistics service providers to transform into tri-modal service providers, thus increasing their profitability substantially (Mangan, Lalwani, and Butcher 303-315). Part 1: Case Analysis Analysis of Relevant Issues: Emirate Dubai is home to a population of 1.2 million people. The city can be classified as a cosmopolitan, since it provides shelters to people from multilingual backgrounds, different cultural backgrounds, different countries, and different regions of the world. Dubai is the 2nd largest and wealthiest of the seven emirates of the United Arab Emirates. The city provides a linking ground between the West soil, Persian soil, and Asia soil. Trade in the region increased in the 2nd half of the centaury. The fundamental reason behind this change was the building up of a sea port and numerous tax concessions offered by the monarch of the land. When oil was discovered in the city, trade and exports of the city saw a drastic increase. However, the royal family of the land was clear that it would end this dependency of the economy on oil export and would create alternate avenues for revenue generation. It was due to this that the city started making progress in its infrastructure development and sites that could attract tourists. The initiatives taken by the rulers led to an increase in the internationality of the city. This was augmented by the easy living atmosphere offered by the city. Western foreigners also found a land were they could spend quality time. This easy going atmosphere was germinated due to the liberal religious attitude of the rulers and due to the English language being the most preferred language of the city (Mangan, Lalwani, and Butcher 303-315). Such favorable characteristics of Dubai made it a regional trade hub; it serves around 2 billion customers worldwide. Businesses interested in starting operations in this city should not fear the law and order situation in the country, political climate of the city, and external relationship of the city. The city has been deemed as the Switzerland of the Arab world because of it neutrality towards international events and incidents. A business ...Download file to see next pagesRead More
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