It has essentially been an economy dependent on oil. Realizing the fact that Dubai cannot depend on oil perpetually, the ruler of Dubai, Sheikh Mohammed Bin Rashid Al Maktoum took a massive restructuring of the…
Let us write or edit the essay on your topic
"The sudden economic crises of Dubai, a result of their own doing A critical perspective within the Michael Porter's diamond model for international businesses"
with a personal 20% discount.
However with global recession hitting the world in 2008 all investments came to a halt. The market became bearish and infrastructure projects came to a halt. Dubai was adversely affected because the property prices during normal times were sky high but dropped immensely during recession. It was felt by analysts that Dubai was like a pack of cards and its fall was inevitable. It was regarded as a monument of greed and vanity. It is in this context that the report is prepared and it analyzes how the own doing of Dubai led to the crisis.
The crisis is analyzed using Porter’s Diamond model and it has been found that Dubai largely depended on foreigners to avail its services. The domestic demand from locals was not very high. Porter has identified domestic demand as an important factor for a firm’s competitive advantage. This was Dubai’s weakness.
As far as labor factors are considered there are not many local labors available in Dubai. Dubai depends on laborers from other countries which is a setback for Dubai. Moreover lack of education is also an important factor which Dubai needs to work upon in order to be competitive in future.
The United Arab Emirates is divided into seven city states which has their own governments, own budgets, own legal structure and so on. Dubai has developed at a very fast pace but in the last decade it has increased it spending massively in major infra structure projects in order to develop real estate and to attract tourists. The Dubai problem started when Dubai World which is the state owned company having a liability of $60 billion, announced its bail out plans (Spencer, 2009).
The uncertainty regarding Dubai sent down shivers across the globe. It led to more than $14 billion being wiped out of the British banks. Although the total debt of Dubai was around $80 billion, the uncertainty had a rippling effect all across the globe (Hosking & Robertson, 2009).
The report tries to find out the main causes ...
Cite this document
(“The sudden economic crises of Dubai, a result of their own doing A Essay”, n.d.)
Retrieved from https://studentshare.net/miscellaneous/400208-the-sudden-economic-crises-of-dubai-a-result-of-their-own-doing-a-critical-perspective-within-the-michael-porters-diamond-model-for-international-businesses
(The Sudden Economic Crises of Dubai, a Result of Their Own Doing A Essay)
“The Sudden Economic Crises of Dubai, a Result of Their Own Doing A Essay”, n.d. https://studentshare.net/miscellaneous/400208-the-sudden-economic-crises-of-dubai-a-result-of-their-own-doing-a-critical-perspective-within-the-michael-porters-diamond-model-for-international-businesses.
Porter brought about a revolution in the management field. The revolution was all about the study of competitive strategy for corporations, regions and more recently, health care and philanthropy. In essence, Porter evaluated the strategy job to understand and cope with competition.
The World Economic Forum ranks countries in terms of their international competitiveness in the world market. Porter’s diamond model extends firm competitiveness to country competitiveness. This has opened up debate among economists and scholars based on the management theories.
Business structures and competitiveness of Canada – Analysis using Michael Porter’s ‘Diamond’ Model of International Competitiveness Table of contents Executive Summary 3 1.0 Introduction 4 2.0 National competitiveness – characteristics 4 3.0 The Diamond of National Advantage 5 4.0 Business structures and competitiveness of Canada using Porter’s Diamond model of international competitiveness 6 4.1.
If a nation is good at producing a single commodity, other nations will not waste their time by using their own resources to make that product. Rather, they would prefer that they buy it from the country who is an expert in making that commodity. When this specialization over a single commodity is achieved by a single nation, it is said that the nation has got competitive advantage in producing that commodity.
It's feasible to consider the degree of attractiveness here. In fact it's this particular characteristic that determines the level of industry profits. Thus the opposite is true when unattractive industries incur losses as in the case of those industries that constantly develop characteristics of perfect competition.
nchmarks such as potential entrants, supplier power, industry rivalry, buyer power and threats from substitute products for determining the strengths and weaknesses of an organization. Majority of modern organizations are currently using Porter’s five forces theory to
nd viability owing to geographical and geological complications the country faces which continue to negatively affect the sector (Martha and Ulfa, 2004).
Factor conditions: The Netherlands has an extremely powerful and knowledge base for renewable energy technologies (Lafferty,
The author states that the environment factors that a company should take in to account when trying to attract foreign investment includes the following: first, factor conditions. This includes the production factors of the given country. They are among others, human resource; capital resource; knowledge and natural resource.
12 Pages(3000 words)Essay
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Let us find you another Essay on topic The sudden economic crises of Dubai, a result of their own doing A critical perspective within the Michael Porter's diamond model for international businesses for FREE!