Globalisation and Its Impact on UAE - Essay Example

Globalisation and Impact on UAE Submitted by: XXXXXXXXX Number: XXXXXXXX XXXXXXXX of XXXXXXXX XXXXXXXXX Subject Code: XXXXXXX Date of Submission: XX – XX – 2011 Number of Words: 1038 (Excluding Bibliography) Introduction: With the widely changing markets, the term Globalisation is not one which is unknown to most across the World. Globalisation has impacted almost every sector and industry across the world and has had both positive as well as negative impacts as well. This paper aims at understanding the term Globalisation and to identify the impact that globalisation has had on the United Arab Emirates (UAE). The paper will firstly include a discussion explaining the meaning of globalization following which the impact will be discussed. Globalisation: There are several different definitions and meaning for globalization of which one simple meaning would be unification of the world into a single society which functions together. Globalisation includes a wide range of internationalism which has also been mistaken over the years. The terms became prominent during the 1990s with the end of the Soviet Union Cold war. This is a major change which is steady and is one which includes complete integration of various countries. Globalisation refers to the interaction among different countries in order to work together to develop the global economy. Here there is generally an integration of economies and societies across the world. Globalisation is an opportunity that opens us many different areas for more interaction among people across the world (Kose, 2003). In terms of social as well as business activities, globalisation opens up opportunities to allow better communication and interaction without the issue of locations or borders. Stephen Gill explains globalisation to be a method which helps in reducing the costs by means of transaction and Trans – border movements of goods as well as capital and other factors of production. Guy Brianbant has however explained globalisation to be a process which includes a number of different factors like the improvement of communication, financial markets, and also internationalisation of the companies and growth of the multinational companies along with better mobility of people and factors like capital, data, goods and ideas. He has however also taken into account the negative aspects of globalisation i.e. higher mobility of infections, diseases and pollution (Mooney & Evans, 2007). This provides an overall and well rounded explanation of the process of globalisation and takes into account all perspectives of globalisation. Impact on UAE: Globalisation as has been discussed has impacted almost every country in the world, either positively or negatively. Here in the case of UAE, the country has been of interest and the collaboration between the country and other international locations has played a major role in the development of the country (Patapan, 2007). The Government of UAE has clearly realised the need for an open economy with a chance for other countries to easily invest into the economy as it is not only beneficial for the investors but also so much more for the country itself. The country is known for the intense energy reserves that it possesses and this has in fact allowed the country to be a major attraction for numerous investors as it is clearly a sphere that can be very profitable. As explained by Hollis (2000), “Dubai attracts foreign investors and corporations because of the considerable economic opportunities offered to businesses there. The vision of Vice President of UAE and Prime Minister and Ruler of Dubai Sheikh Mohammed bin Rashid al Maktoum is to create an open society where international businesses are invited to actively participate in building a better infrastructure and improving business relations” (Hollis, 2000, p. 52). In terms of the other factors apart from the dependence on the natural resources, it is clear that the globalization has led to the introduction of new spheres of income for the country. Moving from the natural resources alone, the country has now been able to explore travel and tourism as another form of major income for the country and has also led to major liberalization of the real estate markets as well. Globalisation has allowed numerous people to buy land and also development of hotels, resorts and offices (Hollis, 2000). This allows the company to effectively increase the economy of the country and also provide better income to the country. The country’s economy has also seen intense improvements keeping in mind the increasing levels of foreign direct investments and also the newer levels of imports and exports in the markets. This has helped the country expand its markets and has also has helped in increased earnings based on exports (Feenstra & Hanson, 1996). Globalisation has opened up exports like natural gas, crude petroleum, and dried fish and also re exports which it mainly sends to countries like France, Italy, United States and many others. UAE has also gained a great deal in terms of the latest technologies and the country has been able to develop more technology savvy products as well as more advanced ideas in various spheres of the industries. With the improved overall technology available in the markets, the levels of innovation has increased a great deal while the overall costs are now easily reduced and thereby leading to higher volumes of sales and increased levels of entrepreneurship as well. There has however also been quite a great deal of negative impact that the country has also faced due to globalisation. UAE being a deep – seated Islam country has been faced with the issue of traditions and culture being impacted due to the overall increase in travel and tourism. Also, with the high and intense levels of investors from across the world, the business style and ways of dealing with business has also been clearly impacted (Thurow & Tessler, 1998). Globalisation has also had a major impact on the overall culture and mentality of the people of the country and is to a great extent moving people away from the culture of the country. Although the country is based on rigid rules and is based on adhering to the rules and regulations, globalisation has led to changes in the way of life of the people in UAE. In conclusion, it can be said that globalisation has had a positive as well as negative impact on the country. On one hand it allows the overall economy to grow to a great extent while on the other hand it impacts the overall culture of country. Bibliography Hollis, R. (2000). Managing New Developments in the Gulf. Royal Institute of International Affairs. Kose, M. A., (2003), ‘Effects of Financial Globalization on Developing Countries: Some Empirical Evidence’, September 2003, International Monetary Fund Mooney, A., & Evans, B., (2007), ‘Globalization: The key Concepts’, 17th April 2007, New Edition, Routledge Patapan, H., (2007), ‘Globalization and Equality’, 20th March 2007, Taylor & Francis Publications RobertC.Feenstra, Gordon H. Hanson, (1996), ‘Globalization, Outsourcing, and Wage Inequality’, American Economic Association Papers and Proceedings, 86(2), 240-245 Thurow, L., & Tessler, M. (1998). The Information Revolution and the Arab World: Its Impact on State and Society. I. B. Tauris. Read More