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The Legal and Ethical Environment of Business - Essay Example

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Summary to essay on topic "The Legal and Ethical Environment of Business"
Currently, Iraq is regarded as the world's second largest proven oil reserves, next to Saudi Arabia. In this nation, oil is considered as the most important asset as the whole economy is dependent on its production and exportation. However, it can be recalled that the Iraq oil industry was heavily regulated by the state…
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Download file "The Legal and Ethical Environment of Business" to see previous pages... As the oil industry is directly related to the political setting, it is expected that the takeover of the United States and the Coalition forces since 2003 as well as the new constitution in place will create new opportunities for foreign investors. The Iraqi Constitution of 2005 clearly stipulates the provision of business prospects for international oil companies (IOCs).
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The global policy forum recognizes this: "In the new setting, with Washington running the show, "friendly" companies expect to gain most of the lucrative oil deals that will be worth hundreds of billions of dollars in profits in the coming decades. The new Iraqi constitution of 2005, greatly influenced by US advisors, contains language that guarantees a major role for foreign companies" (Oil in Iraq 2006).
DWI can take advantage of this by pursuing oil exploration in Iraq. This new venture is expected to raise its oil production as well as it revenue and profit. DWI will be able to produce high-grade crude that is extraordinarily cheap to manufacture. In Iraq, discovery and development cost is only $0.5/B and $0.5-$1.0/B, respectively.
As the constitution of the new Iraq government is still under establishment, there are no concrete laws which govern the oil industry. ...Download file "The Legal and Ethical Environment of Business" to see next pagesRead More
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