Question

Country Analysis

Selected Country: UNITED ARAB EMIRATES (UAE)

1. International Trade and Investments:
   • Export and Import, Trading partners
   • Balance of payments
   • FDI
2. Global economic Integration
   • Openness, participation in trading blocs
   • Protectionism: Tariffs and quotas WTO membership
3. Economic challenges: Identify and discuss at least 2 economic challenges (defined broadly) faced by the country. Is the country taking any steps to address the problems?
4. Summary about growth outlook

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Note: Please do not copy paste plagiarism is prohibited

Answer 1

ECONOMY OF UNITED ARAB EMIRATES {UAE}

The economy of United Arab Emirates is the second biggest economy in the Middle East nations coming after the Saudi Arabian economy. The Country falls under the developing nations with the individuals and the workers receive a comparatively higher income when compared with the other nations occupy in the same category.

1] INTERNATIONAL TRADE AND INVESTMENTS

EXPORT AND IMPORT

The United Arab Emirates participates in the world trade with a very effective and significant contributions. The nations being a part of the OPEC, the organization of the petroleum exporting nations and in the World Trade Organization.

The nation accounts for a $308 billion US dollars in the case of export. And the major exporting items is non other than the petroleum products. The export of the petroleum products add more and more wealth and financial stability to the nations. The other main products includes the diamonds { which may or may not be furnished }, the gold and the others. And the major partners includes the India, China, Iran, Germany, South Korea and Japan.

On the other hand the nation accounts for a $230 billion in the case of imports. And the major imports includes the machinery and also the other equipments, including the electronic equipments. The major import partners are China, United States and India.

BALANCE OF PAYMENT AND FOREIGN DIRECT INVESTMENT

When we consider about the balance of payments by considering the exports and imports, we are clear than the nations exports more in terms of US dollars than the quantity of what they imports. This shows a positive trade with the other nations. And it is very important to keep the financial stability of the nations when compared with the other nations. And also the nation accounts for a $125 billion US dollars in terms of the FDI. This shows the stability and the progress of the economy of the United Arab Emirates and the growth of the nation and it's economy.

GLOBAL ECONOMIC INTEGRATION AND PARTICIPATION

As a part of globalization the economic integration and interdependence between the nations has increased in a great extend. Most of the economies in the world depends on the other for their stability and smooth running. The same view is highlighted in the economy of the United Arab Emirates. They actively participate in the world trade and try to corporate with the other nations. One of the best example is the economic cooperation arise between the nations in the GCC. For the nations in GCC there exists this cooperation, this termed to be as the GCC Economic Integration.The joint ventures and the Cooperation in the scientific and technological fields also shows this view of development.

TRADING BLOCS

In terms of trading blocs UAE is a member nation in the Great Arab Free Trade Agreement {GAFTA} they are easily and freely access to the most of the Arab nations. And also as mentioned above they are also a part of the Gulf Cooperation Council {GCC} and actively involved in the trade agreements with the nations. They have also trade agreements with the United Sates of America and it is signed in the year 2014. They have also trade agreements with the Singapore. These are the important trade agreements and participation.

2] PROTECTIONISM

TARIFF'S AND QUOTAS

Being a member of the Gulf Cooperation Council {GCC} they follows and works under the GCC customs union and the imported duties and the tariff's will decided on the basis of their rules and follows their guidelines. The imported duty will be same among the member nations. The duty has to be paid to the imported nations not to their actual destinations in this council. The import can be only practiced by the licensed company in UAE and that company must have more than 50 percentage share by the current country.

The products imported to the nations will have the imported duty is given on the basis of Difference in the products. Some of the products are exempted from the duty and the alcoholic products will have more than fifty percentage duty and the tobacco products have 100 percentage.

The nation is a member in the World Trade Organization and obey and acts as per the guidelines built by the organization.There also exists barriers in the trade of alcohols, tobacco and also the pork products. So these are the some barriers with exists in the trade in the United Arab Emirates.

3] ECONOMIC CHALLENGES

For every economy whether it is developed or developing they have to face certain economic challenges to tackle and to move straight ward. One of the most important challenge that the UAE economy has to face is the inconsistency in the oil price. Lion share of the economy is depending the price of oil for the stability. But the price of the oil is falling continuously and this fall in price is one of the major threat to the economy. Because it will lead the Country to face the high inflation rate and will be followed with the unemployment rate. And eventually they will lead to the hike in price of the every day life service and items consumed. So the nation must tackle and encounter with this situation and has to achieve a greater economic success.