Country business profileThe United Arab Emirates (UAE) is currently on its rapid expansion process, with Emirati governments helping both in public and public-private ventures by spending the proceeds of high oil prices and international investments in the region. They have not only increase in availability of funds, but invest in human capital and in improving in the rapid growth of the non-oil sector. The UAE has been a regional leader when it comes to economic and innovative plans since it was established as a Federation. Business and economic data for the 6 GCC countries and 4 other countries.
CountryGDPexchange ratePopulationGDP per capitaInflation rateUnemployment rate YOUTHSchool lifeWorkforceUAE$360.1 Billion5,314,317$48,8000.9%12.1%13 years4.1 MillionKuwait$176.6 Billion2.9 Million$62,7004.7%2.2%2.4 MillionQatar$173.0 Billion1.9 Million$92,5001.9%0.5%1.4 Million Saudi Arabia$576.8 Billion28.1 Million$20,5005%10%7.64 Million Oman$71.8 Billion2.8 Million$25,2004.1%15%920,000Bahrain$22.9 Billion1.34 Million$18,200-0.4%3.8%655,000Yemen$33.8 Billion24.8 Million$1,40016.4%35%6.5 MillionEgypt$229.5 Billion 82.5 Million$2,80010.1%12%26.1 MillionIran$331.0 Billion74.8 Million$4,50020.6%12.4%25.7 MillionIsrael$242.9 Billion7.8 Million$31,3003.5%5.6%3.2 MillionWebsite used: www. worldbank. orgTask 3Usually the main aim of import quotas, tariffs and duties is generally to protect home industries that are more likely to fail against international giants (Cadogan, 2010), but in poor countries this is not the case because most developing countries do not have their own industries to protect and therefore, import quotas, tariffs and duties are of no benefits but to hurt their standard of living. As far as this question is concern, poor or developing countries in most cases prefer free trade where there is no trade controls for goods and services they import.
Poor nations in most cases import more than they export and therefore any tariffs, quotas and import duties impose on goods and services into the country will hurt their standard of living because these goods and services into the country will reduce dramatically because individuals or organization will not be willing to pay for goods and services with high tariffs, quotas and import duties, hence decrease welfare of domestic consumers.
Since tariffs and quotas can reduce the total goods into the country, the demand will shoot up and this will drive prices up and consumers' purchasing power is affected (Motoshige, 1982). As we have seen above, governments usually set import quotas and tariffs in order to encourage domestic production (Cadogan, 2010). This will often boosts local economies, but in some cases, it can lead widespread corruption.
This happens when companies will try, sometimes, to avoid importing tariffs and quotas by bribing officials by big companies and smaller companies cannot compete. Import tariffs, quotas and other import duties have been known to create a black market for products. This is because consumers will turn to illegal methods of obtaining the goods they desire without import duties. Every country collects revenues so as to support its functions economically. Placing more import tariffs on foreign goods is one way getting more revenue, but in developing countries, corrupt officials may take an advantage of this and imposing any duties on imported goods is of no help to the economy (standard of living).
Therefore imposing duties like quotas and tariffs on imported goods does not help the standard of living of poor countries with corrupt leaders. Task 4What decides the standard of living for a nation is a combine measurement of various conditions like education, healthcare and purchasing power. It is different from other related measures like quality of life which relies on other factors like leisure opportunities and happiness.