Globalization Analysis: Qatar, UAE, and Saudi Arabia - Business Report

This report provides a comprehensive analysis of 21st-century globalization, focusing on key concepts and their application in Qatar, the United Arab Emirates (UAE), and Saudi Arabia. The report begins by defining essential terms related to globalization, such as sustainable economic growth, fi...Read More

21st Century Globalization
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Table of Contents
Executive summary 1
Definition of terms 2
Body 3
Discussion on 3 countries 3a
Discussion on selected country (Qatar). 3b
Fundamental factors driving globalization 4
The strategies for entering into and succeeding with new or foreign markets 5
A strategic proposal for the expansion of a business.6
Conclusion 7

1. Executive summary
The report analyses the issue of globalization. Basically globalization involves spread of
investment and businesses across national borders (Ariely, 2012 p.89). The concept of
globalization shows how nations comes together to carry out international trade. The report starts
by defining some concepts of globalization which are later selected to discuss globalization in
three countries.
2. Definition of terms
1. Sustainable economic growth
Sustainable economic growth occurs when the actual real output tends to increase over a certain
period of time. Therefore, sustainable economic growth in simple words means the rate of
growth which can be highly maintained within the organization within a nation thus tackling
economic challenges for future benefits (Asongu & De Moor, 2017 p.67).
2. Financial capital
According to Asongu (2013) financial capital is an economic resource that is usually measured in
terms of money as used by entrepreneurs and businesses. Also, financial capital/equity in finance
is internal retained earnings which are generated by funds provided by the lenders to purchase
the real capital or services.
3. Technology (energy)
The technology (energy) is a discipline of engineering science that is related to environmental
friendly aspects and economical extraction which should have positive effects on human health
and the environment. Basically, energy is a scarce resource and need to be utilized efficiently to

ensure no wastage. Use of technological capabilities will help in extracting adequate energy that
will aid in attaining globalization goals (Bengtsson & Östman, 2013 p.45).
4. Population
Population refers to all elements that meet the selection criteria of a group to be studied and from
which the specific sample is obtained for further examination (Blum et al., 2012).The total
collection of all entities forming population is the universe.
5. Political stability
In simple words, political stability involves the aspect of peace and order within a group, within
a nation or even in foreign nations. Most of the time political stability is associated with national
politics (Cavusgil, Knight & Riesenberger, 2017 p.87).
6. Energy demand
Refers to the increased need for use of energy. Energy demand is associated with different
factors. The increased population leads to increased demand for energy and services associated
with energy (Gibb, Haskins & Robertson, 2012 p.81).
7. Energy supply
Basically, energy supply involves the delivery of fuels to the desired location of consumption. It
also involves extraction, transportation, and storage of fuels for future use.
8. Renewable energy,
Refers to the type of energy which is gotten from renewable sources of energy. The renewable
sources are naturally occurring such as the sunlight, rain, wind, and waves which are used to
generate energy for commercial and industrial uses (Gibb, Haskins & Robertson, 2012 p.131).

9. Market Effectiveness
Different authors argue that market effectiveness is the measure of how effective a marketer will
follow the strategies so as to the goals of maximizing the benefits results for the long term and
short term (Grant, 2010 p.32). Market effectiveness is therefore quintessential to marketing thus
it cannot be measured in any way.
10. Conservation & Efficiency
Basically, conservation and efficiency refer to approaches taken to reduce the consumption rate
of a certain service or product (Hopper, Lassou & Soobaroyen, 2017 p.67). On aspect of
efficiency, the goal is to make efforts to reduce the consumption of a product or service (Grant,
2010 p.132).
11. Environment.
Basically, the term environment in business refers to the collection of both internal and external
factors which affects the business either positively or negatively (Hutchings, Lirio & Metcalfe,
2012 p.189).
3. Body
3a.Discussion on 3 countries
Political stability
In Qatar
In general, Qatar is stable both politically and economically. First of all, the citizens in Qatar are
one family meaning that they care for one another. For the last 20 years, all people in Qatar have

been in the position to instill the aspect of peace and order and that's why the country has thrived
economically (Idris, 2012 p.30).
In the United Arab Emirates
The UAE has been identified as a country with a better model of stability. Since 1971 UAE has
been successful in the constitutional monarchy. The UAE has beliefs which work towards the
administration of peace and justice. The present political structure and entire components of
government in UAE work in the provision of peace and order thus political stability.
In Saudi Arabia
In Saudi Arabia, the issue of political stability is associated with different factors (Idris, 2012
p.30). The orderly succession, the political reforms and regular consultation in the country
induce the issue of harmony.
Sustainable Economic Growth'
Qatar
The country has been in the frontline to campaign for vision 2030. This shows that the goals of
the country are anticipated to achieve vision 2030. In order to ensure there sustainable growth in
the country, Qatar has ensured that there is efficient utilization of natural resources by the
population. Qatar is the main source of oil in the world and this shows that unless the country
controls the oil wells then in future there will economic instability (Iversen & Larsson, 2013
p34).
United Arab Emirates

There are different factors which are associated with sustainable economic growth in the UAE.
Some of the factors include;
The global partnership in UAE aims at meeting the international obligations which help in the
development of foreign business in the country (Le Heron, 2016 p.80).
Saudi Arabia
Saudi Arabia has oil reserves which are the second largest after Qatar (Le Heron, 2016 p.80).
The oil deposit in the country helps in economy stabilization whereby the country exports oil
products to different countries in the world. Therefore, the sustainability of the economy in the
country is marked by foreign investment which catalysis the issue of globalization.
Environment
Qatar
Qatar is one of the wealthiest countries in the world. The success of the country has been
catalyzed by the presence of apt business environment conditions. The legal framework in the
country indicates that no tax is payable for wages thus stabilizing the economy and encouraging
more investments (Mihajlović & Krželj–Čolović, 2014 p.34).
United Arab Emirates
The business environment in the country is favorable for globalization in the 21st century.
The economic strength is that UAE has the highest per capita GDP and it has the highest human
development index which makes the country viable for business opportunities (Morrision, 2017
p.11).The business environment is also secure and stable (Morrision, 2017 p.11).
Saudi Arabia

The environment in Saudi Arabia is viable for business development. The country has a stable
economy and this encourages foreign investors who enjoy huge profits from globalization.The
economy is dominated by oil revenues (Nicholas & Steyn, 2016 p.67).
Corruption Perceptions Index (CPI) data (Asongu & De Moor, 2017 p.77).
Country Rate
Qatar 33 least corrupt country out of 175.
United Arab Emirates 23 least corrupt country out of 175.
Saudi Arabia 49 least corrupt country out of 175.
Consumer price index,
Country Rate
Qatar Around 117.5 index points
United Arab Emirates 109.61 index points
Saudi Arabia 105.7 index points
Trade deficit
Country Rate
Qatar $ 1.5 Billion
United Arab Emirates $ 2.6 Billion
Saudi Arabia 2.5 Billion
Balance of payments

Country Rate
Qatar Large deficit in Balance of payments
United Arab Emirates Increasing Balance of payments
From 36 AED to 62 AD
Saudi Arabia Increasing Balance of payments
From -23.84 USD to -56.72 USD.
GDP graph for my chosen country Qatar
Qatar’s economy has been identified as one of richest economies in the world. The GDP from
1970 t0 2010 in Qatar is show below;
Qatar CDP (Nicholas & Steyn, 2016 p.117).

3b. Discussion on selected country Qatar
Multi-National Enterprise
Refers to the business which are made up of parent company that controls and owns all
transactions in different countries .It involves operations which are either internal or external
thus enhancing trade.
The PESTEL analysis of Qatar
The political system which comprises the legal policies for managing businesses .Governmental
structure and policies supports and regulates business.
The economic environment that comprises the financial environment, the businesses and
companies in the country (Nicholas & Steyn, 2016 p.217).
Social environment comprises the cultural activities of different people in the country that
supports business development.
The technological environment comprises of new innovations that support businesses in the
country.
Ecological environment with adequate natural resources such as oil deposits in the country that
supports businesses and the whole economy.
Themes of 21st Century Globalization and diagram
Themes in 21st century globalization in Qatar involves;
The social responsibility which comprises sub themes such as human needs and social goods.

The sustainability themes such as climate change and sustainable businesses in the country.
The governance themes that includes legitimate political institutions, fair and effective policies
and anti-corruption strategies (Iversen & Larsson, 2013 p94).
Why do MNEs Internationalize in the 21st Century? And the push factors
The MNEs Internationalize is under the following concepts;
Need to export different products thus taking part in international trade.
Need for Foreign Direct Investment (FDI) whereby it involves the complete ownership control of
the foreign assets in the international trade.
Presence of outsourced production that incorporates the manufacturing of appropriate products
under the use of licenses and other legal frameworks.
Some of the push factors include;
The market saturation which facilitates international trade.
The economic downturn in MNEs
The aspect of tax and regulation frameworks within the country.

FDI foreign direct investment disadvantage and advantages
Disadvantages
Most of the foreign investors will opt to leave when the locations advantages shifts.
The domestic country may lose out on jobs in the FDI projects.
The trade profits may benefit the foreign country more than the host country (Iversen & Larsson,
2013 p.568).
Advantage
Helps in promoting economic development and technology advancement both locally and
internationally.
The new skills from the foreign countries will assist the hosting country to develop.
Perspectives on 21st Century Globalization
The hyper globalization perspectives which comprises the positive view focusing on
empowerment of the organization and individuals.
The skeptical perspective which includes the inequalities, the negative impacts of environment
and the growing powers of MNEs (Idris, 2012 p.110).
Tensions within the Global Environment.
The disruptive effects associated with technology raises issue in the societies.
The globalization of the financial markets causes risk to the financial systems which exposes the
global capital flows.

Societies become multi-cultural through issues such as immigration and other underlying
tensions.
The increased risks in integration of national economies.
The developing countries are reluctant to accept changes on reduction of emissions.
Changing Populations in the 21st Century
Demographic changes which includes the birth rates, the death rates and migration.
The ageing population which has been rising in developed countries (Idris, 2012 p.190).
Increased younger population but also chances of ageing populations in future.
Role of culture
Culture leads to crossvergence or the gradual process of cultural integration.
Cultural convergence which is growing cosmopolitan for globalization.
Cultural language is the basis for communication in globalization world.
FDI for MNE must be able to adjust to host / my chosen country culture.
Challenges and Responsibilities MNEs’ global strategies
Most of the economies tend to look international thus leaving behind the domestic firms for
propelling economic growth (Idris, 2012 p.201).
MNEs strategies tend to seek location benefits in the developing nations.
There is challenge of enhancing inclusive growth in the trade to benefit the entire society.
Political Sphere in the 21st Century

The section comprises aspects of politics in the nation. Politics include the process by which the
power is exercised within the social groups.
The public and private spheres in globalization.
Public sphere comprises the institutions in the nation such as governmental structures that plays a
critical role in political decision making in globalization (Grant, 2010 p.122).
The civil society in political sphere contains the private sector in the country that grants people
freedom to join groups and trade unions to cater the globalization policies.
The pluralism sphere in the country contains the existence of multiplicity in groups and also
national interest in globalization.
Political Risk Internal Factors / External Factors
The political needs in the nation includes those uncertainties which are associated with
governmental powers both in the country and outside the nation.
Some of the internal factors include;
The social unrest in the nation.
The corruption level.
The arbitrary governmental action especially when the rule of a certain policy is weak.
The external factors include
Issue of political instability such as terrorism.
Wars with other nations.

Global political institutions,
Impact of Policy in the 21st Century
The International Labor Organization-which sets standards for safety and workers’ rights in the
country (Grant, 2010 p.212).
The World Bank which gives loans to Qatar nation.
The International Monetary Fund which offers financial aids in the nation.
Role and confirm membership of the WTO / GATT
WTO is the initials for World Trade Organization while the GATT is the initial for General
Agreement on Tariffs and Trade.
Roles of the units
Promoting free trade
Creation of a bank to help finance countries after the war
Helping short term financial crisis in countries
New trade theories related to Qatar
The theory of comparative advantage which shows the products the country is able exchange in
international trade such as petroleum products.
The product life cycle theory which accounts for the life of products in the market.
The competitive advantage in the country which is based on factors found in porters arguments
such as;

The factor considerations which involves checking labor in the country (Grant, 2010 p.332).
The demand considerations that measure domestic demand for goods and services.
The supporting industries in the country.
The structure and firm strategies in Qatar which favors firm development.
Role of World Bank and IMF in Qatar
To promote international monetary co-operation in country.
To facilitate the expansion and balanced growth of international trade in country.
To promote maintenance of high levels of employment and real income in Qatar.
To help country
To develop productive resources as primary objectives of economic policy
Type of governance in Qatar
The Qatar is an absolute hereditary monarchical government that is rule by the Al Thani family.
Trade agreements in Qatar
Some of the trade agreement in Qatar are;
The multilateral agreements which are sponsored by WTO.
The Bilateral agreements
The regional trade agreements in the country.
The plurilateral agreements in Qatar allows trade with other nations.

Whether Qatar offers free trade
Qatar offers free trade but the govenrmemnt controls and maintains the international trade thus
deterring existence of unwanted businesses /trade in the country. The customs unions and
common markets ensures free movement of goods and services inside and outside the country.
Technology and economic development in Qatar
Increased use of advanced machines for exploitation of natural resources such as crude oil.
Increased communication through use of super computers (Rosière & Jones, 2012 p.14).
There are organizations which supports free trade in Qatar.
The country has stabilized economy.
The labor is skilled and cheap in the country.
Ethical and sustainable development of globalization in Qatar
The legal implications –for example formation of new laws and policies to control international
trade in Qatar.
The cultural implication-for example sharing of cultural values in international trade has resulted
to diversity in Qatar (Le Heron, 2016 p.190).
The technological advancement in the country. Qatar is progressing in field of technology
whereby new innovations are widely used in the entire globe .For example use of powerful
gadgets in exploitation of crude oil.
The political implications of the trade. There is greater cooperation between Qatar and the UN.
For example, the International Labor Organization.
4. Fundamental factors driving globalization.

There are different factors which drive globalization. Some of the factors driving the aspect of
globalization are; the technological advancements (Rosière & Jones, 2012 p.34). The political
engagement also facilitates globalization process. Economic integration also facilitates
globalization (Simplice, 2013 p.74).
5. The strategies for entering into and succeeding with new or foreign markets.
The section analyses the key process used by an organization to enter into foreign markets. Some
of the strategies used include;
The direct export. This is the common strategy used by almost all businesses. It's simple and
management team focuses on selling products they have in the company (Verger, Novelli,
Altinyelken, 2012 p.90).Through franchising, through partnership, through a joint venture and
licensing.
6. A strategic proposal needed by Exergy Vision for the expansion of a business.
A model that can help Exergy Vision in expansion of business is setting up new product line and
through merging. On another hand the FDI needed by Exergy Vision is the Equity Capital which
involves buying of shares of an organization out of the foreign direct investors own by it (Wild
& Wild, 2015 p.292).
Civil society group that can help the business to do global business in Qatar is the UN
Development Program (UNDP).The group provides adequate resources that supports the
international trade. In Qatar the aim of the group is ensure all people can access the global
business without struggling. It provides monetary funds for establishment of businesses.
Advice to senior management team at Exergy Vision

Determining the actual effect of expansion and personal capabilities (Waddell, 2017 p.89).This
involves hiring new workers until the whole work is done inappropriate manner.
Determining the routes and logistics which will help in reaching customers in the marketplace.
This shows identifying the needs which should be augmented (Wild & Wild, 2015 p.192).
7. Conclusion
The report clearly indicates the effects of globalization and also definitions of some terms
associated with globalization (Wild & Wild, 2015 p.292). The three countries identified shows
economic advancement due to involvement to globalization activities. In Qatar the FDI is
important for Exergy Vision since it ensure to have pre-information related to the foreign nation.
The driving factors and ethical issue of globalization determines the survival rate of businesses in
international markets. Through merging the Business will thrive since large number of customers
will be anticipated. Changing the model may help in exploiting new opportunities.

References
Lecturer notes
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