Contact Us
Sign In / Sign Up for FREE
Go to advanced search...

Iran Mideasts Model Economy - Essay Example

Comments (0) Cite this document
Because of currency fluctuations firms may also choose to distribute their operations across many countries including emerging ones to reduce the risk of devaluation in one country…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER97% of users find it useful
Iran Mideasts Model Economy
Read TextPreview

Extract of sample "Iran Mideasts Model Economy"

Strategic Management - Iran Mideast's Model Economy _ Case Study Introduction: New large scale emerging markets such as China and India provide a strong internationalization incentive because of the potential demand in them1. Because of currency fluctuations firms may also choose to distribute their operations across many countries including emerging ones to reduce the risk of devaluation in one country2. However the uniqueness of emerging markets presents both opportunities and challenges.3 Iran from the facts found in the case study may be strategically treated as an emerging market presenting new opportunities as well as challenges.
Challenges of Iran:
The foremost challenge Iran faces is the trade sanctions from the United States that has hampered the inflow of foreign direct investments in to the country. If the country can solve its political and economic problems the country would be able to equal the economic growth of China in a very short time.
The results of the last Parliament elections though disqualified the reformist candidates still a number of business minded focused on economic issues have been elected. However the progress in the economic reforms cannot be expected to take place at a faster pace.
There are numerous challenges the country has to pace on the economic front. The amount of subsidies the government has to shell out on almost all the imported products from wheat till the imported fuel. The exports of non-oil products are very meager. Most of the manufacturing pants run in losses. The control of more than 50 percent of the economic activity is in the hands of various government departments and religious charities.
Investments by private firms face lot of hurdles especially in the lucrative oil industry. This deters the major international companies to sign up contracts with the country. Corruptions at all levels are another major challenge the country has to tackle.
An all round economic reforms that too at a very fast rate will enable Iran to emerge as a strong economy because of the following distinct strategic advantages the country has.
Advantages of Iran as an Emerging Market:
Iran has World's second largest natural gas reserve with a capacity to produce up to 4 million barrels a day is the single strong factor the country cash one, since no major discoveries of oil has been done after the 1979 revolution.
The offering by the government licenses for new banking companies, reduction in the corporate tax to 25 percent and larger liberalization of trade are some of the measures that will provide enough incentives for the firms to make large capital investments in the country.
The restrictions on imports of automobiles and protection of the home auto industry are another major area that multinational firms can consider for doing business in the country. With the potential for the manufacture of cars in millions of numbers the automobile industry provides a major industrial area that offers a wider scope for multinational business firms.
The government is expected to bring about other major economic reforms before any possible reduction in the oil prices. The important economic reform the government should look at the dismantling the trade barriers which have hitherto been affecting foreign competition.
Buzzing Iranian stock exchange activities is yet another attractive area where major economic developments can be aimed at by the promotion of foreign inward remittances.
The following advantages are likely to accrue to the firms using the strategic markets of an emerging economy like that of Iran.
1. Enlarged market size
2. Greater return on major capital investments or investments in new products and processes
3. Greater economies of scale and
4. Competitive advantages through location which gives access to low cost labour, critical resources or large customer areas.
C.C.Y. Kwok and D.M.Reeb (2000) 'Internationalization and Firm Risk: An Upstream-Downstream Hypothesis'Journal of International Business Studies Vol. 31
R.E.Hoskisson, L.Eden, C.M.Lau and M. Wright (2000) 'Strategy in Emerging Economies' Academy of Management Journal Vol. 43
Y.Luo (2003) 'Market-seeking MNEs in an Emerging Market: How Parent Subsidiary Links Shape Overseas Successes' Journal of International Business Studies Vol. 34 Read More
Cite this document
  • APA
  • MLA
(“Iran Mideasts Model Economy Essay Example | Topics and Well Written Essays - 500 words”, n.d.)
Iran Mideasts Model Economy Essay Example | Topics and Well Written Essays - 500 words. Retrieved from
(Iran Mideasts Model Economy Essay Example | Topics and Well Written Essays - 500 Words)
Iran Mideasts Model Economy Essay Example | Topics and Well Written Essays - 500 Words.
“Iran Mideasts Model Economy Essay Example | Topics and Well Written Essays - 500 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Iran Mideasts Model Economy

Iran Term Paper

It immediate neighbors are the countries of Afghanistan, Pakistan, Azerbaijan, Armenia and Turkmenistan. Aside from being a country with religious belief that is centered in theocracy, the nation is also featured with historic and beautiful resource such as the Caspian Sea, prominently known as world’s largest lake as well as the Persian Gulf and Oman Sea at the southern part of the country (Sahar, 2007). The Caspian sea stretched over the coast at 650 kilometers while the Persian Gulf and Oman Sea covered 1,770 kilometers (Sahar, 2007). Iran’s terrains are mountainous. A large portion of it is arable while about 10.4% of it is used for agriculture. About 6% of the land area is used as pasteurized area. The northern coastal side...
5 Pages(1250 words)Term Paper

Sexual politics in Iran

... Sexual Politics in Iran Being an Arabic nation, Iran is one of the countries in the world with the highest level of conservativeness in terms of both religious and political culture (Vakil 84). Over the past seven decades, Iran has undergone massive revolution especially in the sexual aspect in order to offer liberation to many who deserve it. In this respect, it is important to mention the fact that sexual politics in Iran has elicited various reactions across the gender, religious, and social strata for many reasons (Rieffer-Flanagan 111). Perhaps one of the many reasons as to why sexual politics is so critical in Iran is the fact that the nation is guided by Islamic laws that tend to lower the status of women in the society...
6 Pages(1500 words)Research Paper

The Political Economy of Modern Iran

...Book Review May 25 2007 A book review on The Political Economy of Modern Iran - despotism and pseudo-modernism, 1926-1979, by Homa Katouzian. Published in 1981, The Political Economy of Modern Iran - despotism and pseudo-modernism, 1926-1979, by Homa Katouzian, is an in-depth look at the economic and political conditions in Iran between 1926 and 1979. The book outlines the history of Iran in the Pahlavi era and is dedicated to the memory of Mohammed Mossadeq, Iran's Prime Minister in the early 1950s. It also describes the 'pseudomodernist despotism' of Reza Shah and the 'petrolic despotism' of his son. He also shares his views, in a short epilogue, on the 'pan-Islamic zealots' who have taken power since 19791 Born in 1942, Homa Katouzian...
4 Pages(1000 words)Book Report/Review

A Nuclear Capable Iran

... A Nuclear Capable Iran Introduction Since the Second World War, the number of nations who have nuclear weapons has only increased. Of course there have been situations where some nations have rolled back their nuclear plans and went on to become weapons free states, but many others have worked hard to seek out nuclear arms. The number of nations seeking nuclear weapons today suggests that a nuclear arsenal may be considered a strategic asset as discussed by Paulikas (2006). However, for many analysts, the existence of such weapons also comes with a responsibility to not to use them to the extent that they may not be used at all. Thinkers such as LaFranchi (2006) as well as Carter (2006) have made it clear that some nations may...
7 Pages(1750 words)Term Paper

The Political Economy of Chinas Development Model

... is high, the rulers tend to adopt social privatization which liberalizes the private sector while leaving the public sector intact, Ibid. The end result of the two models is that China has grown fast, since an oppressive regime can ensure quick growth but is likely to face economic problems in the long run. This is because autocracy has its limits as has been witnessed in South American countries such as Chile. The Eastern Europe model is more sustainable in the long run, but in the short term the nomenclature slow down the economy as they protect their interests, Gelb, A.and I. Singh. 1994. Banks and Credit The banking and credit system has gone Haywire. In the us people took loans and mortgages they did not need and could not possibly...
7 Pages(1750 words)Case Study

Iran In Country Brief on their Economy

...Iran Brief I. (Slide 2) There are a number of overarching elements that must be considered when examining Iran’s economy. While Western perspectivesgenerally view Iran as a marginal, yet problematic nation, in actuality the country is the seventeenth largest in purchasing power and 26th by market value (Polk 2011, p. 3). The economy itself is a mixed transition economy. In this way 50% of the economy is centrally planned, with its own stock exchange. This stock exchange represents over 40 industries. II. (Slide 3) In understanding Iran one of the central considerations is the nature of the petroleum industry. The Iran spending budget is $482 billion (Polk 2011, p. 20). This is direct tied to oil prices per barrel. Later...
4 Pages(1000 words)Essay


Iran Case Study
The Iranian nuclear crisis remains one of the main points of concern for all countries of Gulf Cooperation Council. The governments of the countries that belong to GCC see Iran as a threat to region security and political stability after Iran government denied to disclose the nuclear activities, insisting that these activities are not related to production of nuclear weapons. This situation is controversial and many debates arise around it. Iran is suspected in some actions directed against other countries. Some analysts point out that current regime is likely to provide the terrorist groups with the nuclear weapon to use it against Israel. This major concern is accompanied with negative attitude towards Iran’s...
2 Pages(500 words)Case Study

Lockheed Martin as a Model for Ethics in an Organization

Lockheed Martin (LM) had been focusing on petty issues like how to respond to a chain letter from the supervisor or how to deal with an employee who steals his child’s school supplies from the company (Guenther, 2000). They did not allow whistle blowing and there no ethical codes of conduct laid down. In 1997 McDonnell Douglas hired an engineer away from LM who carried with him all proprietary documents. Later that year McDonnell Douglas merged with Boeing, rivals to LM and in 2005 LM and Boeing decided to merge their space-rocket business and came into agreement to drop their litigation over the stolen rocket-contract information (Gates & Mundy, 2006). They could be barred from defense contracts and denied export licens...
6 Pages(1500 words)Term Paper

Growth Performance of Indian Economy

This percentage is expected to rise to 70% by 2030 - the largest in the world, according to a report titled Destination India- from the Investment Commission of India.” (Hood).
We all know that for more than a century, the United States has been one of the largest economies in the world. However the past few years showed major development in some countries, and the focus moved to Asian countries like India and China which were progressing very fast.

According to the experts, share in the total world GDP of India will rise from 6% to 11% by the year 2025. The GDP of India rose to 9.0% during the year 2005-06 again to 9.4% in 2006-07. The projection reports say that India will be 60% the size of the US economy...
6 Pages(1500 words)Assignment

HR Model That Can Measure if It Adds Value

There has been a change of approach in the way that labor is reviewed in the organization and the modern perception emphasizes viewing labor as an investment and not as a commodity or resources. In this regard, labors have started to be seen as a made of creative and innovative social being who is able to give the organization a competitive edge. (Michael 2006, p. 42)
The term human resource has been changing to broader management and the concept of human capital has been applied more often in place of human resources. Therefore the modern perception of human labor has been changing the way organization have been handling their human capital to a more liberalized way. It has been realized that having a competitive workforce c...
13 Pages(3250 words)Assignment

The Importance of Tourism to the World Economy

Since the eighties, perceived risk research has been of ongoing interest to tourism researchers, Dolnicar (2005) and Dickson, Chapman, and Hurrell (2000)  states. Contributions often include those which investigate positive risk as a factor in increasing tourists who are seeking a thrill. On the other hand, there are also those who view these risks as something negative, thus avoiding the destinations which are haunted by different risks such as diseases, terrorism and other forms of political instability (Dickson & Tugwell, 2000).

The current qualitative research inquired about the risks perceived by young people as regards both domestic and international traveling. A sample of 23 was interviewed for this purp...
15 Pages(3750 words)Research Paper

A Six Stage Model of the Innovation Process

This paper will focus on the relationship and impact and innovation will have on politics. The backbone of the paper will be the strong opinion of Professor Langdon Winner who teaches at the Department of Science and Technology Studies. He has said that “technical things have political qualities” and this paper will base its study on this. “Langdon Winner is a political theorist who focuses on social and political issues that surround modern technological change.” (Brief Biography). When undertaking a serious study of the topic, so many theories and assumptions also begin to emerge that are related to the topic. They include concepts like SCOT, Actor-Network Theory, determinism, closure, and other related f...
9 Pages(2250 words)Case Study

Effect of Corporations Moving Jobs Overseas on the Economy

The issue comes into focus, whenever there are political, economic debates or talks about H1B visa limits. The economic slowdown has further led to the intensification of these debates. But, despite apprehensions from different quarters, neither the companies nor the government has said a final word on the trend. Increasing levels of competition amongst the corporate houses have been one of the key highlights of the globalization era. Be it the retail sector, the banking, the automobile, the IT-enabled services, the white goods space, etc. the companies have always been on the lookout for reaching out to more number of customers while doing everything possible to please the existing lot. Leveraging the economies of scale has prove...
8 Pages(2000 words)Coursework

Showdown with Iran

One of the factors that made the US become wary is that Iran staged one of their biggest military exercises this year and it showed that they could gain supremacy and power in the Persian Gulf. This would be dangerous considering that despite America being more technologically advanced, Islam is very powerful in the world. America could probably win against Iran, but it would not win against Islam.
The United States is afraid of Irans' efforts to develop nuclear weapon capability and what it will do once it gains that type of power. There are satellite photographs that suggest the existence of Iran's nuclear facilities. Although strategists say that Iran really isn't a threat and it was suggested that America already had the...
9 Pages(2250 words)Movie Review

Capital Asset Pricing Model and Recent Developments

It is the most essential aspect of any venture. The important considerations that finance has within it, is that of profit and loss. The business as a whole or a person as an individual always strives to earn a profit. To earn a profit, one has to undertake uncertainties that are known as risks. Therefore, profit is also known as the reward for incurring risks.
In the present world of today, the capital market has come up as a viable investment opportunity for individuals all across the globe. People invest their hard money only with the expectation to earn profit or return. The stocks of various companies that are traded in the capital market are also known as capital assets. Prior to investing in any of the stock or capital...
7 Pages(1750 words)Assignment

Global Employee Information and Consultation: Replicating the European Model

...Global Employee Information and Consultation: Replicating the European Model INTRODUCTION The only way for the employees and their representatives to reach the level of multinational corporations is to create an effective transnational mechanism that facilitates consultation and information disclosure. The European model (EWC) is an example of an institution that intends to provide employees voice in the transnational arena. The information dissemination and consultation arrangement enable employee representatives to participate in discussing issues that pertains to their employment. However, there is a need to analyze whether EU style of legislating a mechanism shall be effective if replicated globally. The answer in part depends...
9 Pages(2250 words)Coursework

What to Consider in Structure-Conduct-Performance Model

... for each of the firm. If they both play L then the profits would be half of what they would earn if they do not change. Part B The purpose of this essay is to critically analyze the extent to which the efficiency and equity considerations should be taken into account in the Structure-Conduct-Performance Model when it comes to deciding policies for the mergers between large firms. Firstly, the paper talks briefly about the Structure-Conduct-Performance Model and then moves onto discuss the importance of equity and efficiency in policy making for mergers. Introduction According to the Structure-Conduct-Performance Model, the performance of any industry depends on the firms’ conducts in the industry. The Conduct of the firms in turn depends...
6 Pages(1500 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Iran Mideasts Model Economy for FREE!

Contact Us