Essays on How Globalization and Regional Economic Integration Affects Emirates Steel Company Article

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The paper "How Globalization and Regional Economic Integration Affects Emirates Steel Company" is an impressive example of a Macro & Microeconomics essay.   Regional economic integration is an agreement between groups of countries to ultimately remove or reduce non-tariff and tariff barriers in a geographic region. This integration allows for the flow of factors of production between each other as well as the free flow of services and goods.   Countries, under regional economic integration, have been able to encourage trade between neighbors and focus on issues relevant to their development stage. The common types of regional economic integration are free to trade area, customs union, common market, and economic union.

In 1981, the Arab States engendered the Gulf Cooperation Council (GCC) with six member states; United Arab Emirates (UAE), Qatar, Oman, Saudi Arabia, Bahrain, and Kuwait. Through reduced barriers to entry and consistent investment criteria and trade, the GCC and global businesses have benefited from the regional trade agreements. Steel manufacturing companies that opt to manufacture in one country find it cheaper and easier, in a trading bloc, to move the goods between member countries without additional regulations or incurring tariffs. Given the diffusion of technology and changing costs, western nations can no longer dominate the steel industry; hence, developing countries with favorable government policies are experiencing high growth.

The steel industry exhibits not only significant political, strategic, and economic importance but also remarkable entrepreneurship and technological dynamism. In the 2008 and 2009 economic recession, steel export capability reduced because of decreased total output and domestic demand. As a result, the countries were forced to increase export through capital outflows. The availability of coal and iron ore dictates the geographical location of steel mills.

  Fortunately, neo-liberal policies and globalization have increased mergers, and privatization of state firms, cross-national investments, and steel trade.   However, subsidized steel imports are still perceived as hypocritical since the slow industrial adjustment is inhibited by bailouts of firms and trade barriers. Nonetheless, higher steel prices benefit shareholders rather than workers and results in protectionism with potential job losses.

References

1. Cole, Kati; Lyons, Russell; and Cary, Deborah. "Regional Economic Integration." The Review: A Journal of Undergraduate Student Research. 2 (1999): 70-76. Web. [October 15, 2000].

2. Tayebi, Seyed and Ramezani, Fariba. “Financial Crisis and Steel Trade Integration in Asia and Pacific: A Static and Dynamic Analysis”. International Journal of Business and Development Studies. 3, no. 1(2011): 5-28.

3. Manzella, John. The impact of globalization, trade agreements and emerging trade blocs on US industry. January 1, 1998. The Manzella Report.

4. Emirates steel. Who we are. February 2016. http://www.emiratessteel.com/

5. Al Romaithi. “Consumers are shifting to premium steel as it guarantees optimum returns on their investment”. Abu Dhabi, United Arab Emirates, 19 August 2014.

6. Ibid 2014.

7. Wam, Newman. Emirates steel expansion complete. September 26, 2012.

8. International Financing Review. “Innovative Emirates Steel”. Thomson Reuters. 2010.

9. Al Bawaba. Emirates steel calls for action to face increasing competition and falling prices. April 20, 2015. Albawaba business.

10. UAE interact, 2013. Emirates steel dispatches first shipment of structural steel to United States. News and information on the UAE.

11. Emirates steel industries. Steel talk. Newsletter 2014.

12. Arnold, Tom. “Emirates steel invites phase 3 bids”. September 6, 2011. The National.

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