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Multinational Business - Research Paper Example

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Multinational Business Name Institution Outline I. Introduction II. Economic Geography of Kuwait III. The country's Dimensions of Distance IV. Analysis of the institutions of the Country-Kuwait V. Kuwait's industrial clusters VI. Analysis of the diffusion of technology in Kuwait VII…
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Multinational Business
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Download file to see previous pages The nation is located in a geographical area of 6200 square miles. It has no natural water source and has a population of about 1,973,572 people (Ghemawat, 2001). Its economic standing has been progressing well in the recent past despite various environmental and internal challenges that threaten its GDP. Currently, the nation’s income per capita has increased by 1% while the GDGP level has also recorded a growth of 7%. Economic Geography of Kuwait Kuwait is a vast land that has the potential for growth if proper economic modalities are put in place by the authorities. The country’s resource base can sustain its citizens. This is evident in the immense potential in the agricultural sector, business field and its rising labor force (Ghemawat, 2001). The initiation of viable trade, political, social and cultural policies has enabled the country to record significant growth in its per capita income levels and GDP standards. The policies are to eradicate the distance dimensions or factors that influence performance. Kuwait’s economic geography is bound to record an upward growth trend or expansion especially with the mitigation plans that are under formulation to avert the effects of the dimensional factors. The dimensions that include cultural practices, economic implications, social and political issues must be addressed by any economy that seeks to meet its target (Ghemawat, 2001). The country's Dimensions of Distance Economic growth in Kuwait is dependent on the major factors that influence performance and production. The factors that hold the capacity of stalling or propelling economic performance are integral in enhancing per capita income in the country (Khanna & Sinha, 2005). Authorities in Kuwait recognize the need for the development of viable performance measures to trade barriers and unwarranted economic bottlenecks that seek to impede the flow of production. Modalities are being crafted to streamline economic activities that include agriculture and business operations. This is critical because the country’s economy is financed by the agricultural activities and international business. The policies are to help in eradicate trade barriers and other distant factors that affect growth in the nation. The dimensions that include cultural practices, economic implications, social and political issues hold far-reaching effects to the economy. According to Khanna and Sinha (2005), the country’s international business operations have been affected by the cost implications and risks that result from barriers that are created by the distant factors. He stated that the distant factors do not expressly refer to geographical difference but they are the major dimensions that influence economic growth. Economic element is a dimension that affects business operations and various income-generating activities in Kuwait. The nation is described as a small economy with two major GDP financiers that are under exploited. The under exploitation is due to inadequate resource capacity that hinders the adoption of modern technological set ups for production. Although, the nation’s GDP has recorded significant percentage growth, the increase is not adequate to steer the expansion plans that are expected in the agricultural and business sectors (Khanna & Sinha, 2005). This may further harm the nation’s performance if amicable solutions are not realized. According to economists, ...Download file to see next pagesRead More
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