Research Proposal on the Impact of Globalisation on the Economies of the Countries in the Gulf Cooperation Essay Example
RESEARCH PROPOSAL 6
Research Proposal on the Impact of Globalisation on the Economies of the Countries In The Gulf Cooperation
This proposal focuses on the impact of globalization in the economy of the Gulf Cooperation Council countries. The world is becoming a ‘small place’ where distance doesn’t really have a negative effect on business as it was before. The world is becoming to what is now known as a global village. The economy of the Gulf Cooperation countries has been affected by globalization. The proposal tries to expound on the impacts of globalization on this countries.
The proposal is being written to give an insight on the impacts of globalization on the economies of the Gulf cooperation countries. The economies of the counties in the Gulf cooperation have been improving continuously. Even though some of the countries are faced with bad governance, the potential of their economies is still enormous. The main economic activity of the countries in this cooperation is oil production. The use of oil in almost every sector of the economy makes the demand and value of oil high. The oil industry has made a very big turnaround on the economies of the Gulf Cooperation countries. Globalization has made it easier for the Gulf cooperation countries to trade in the global market. Globalization has therefore made a great impact on the economies of the countries in the Gulf cooperation.
Within the last two decades, the economies of the countries in the gulf cooperation have been flourishing progressively. The economies have been affected by oil production, governance among other factors. The need to market their oil effectively led to the countries forming cooperation so as to have a strong say in the global prices. With this being part of globalization practices, it combined with other globalization trends have made an impact on the economies of the countries in the Gulf cooperation.
Globalization is the mixing and integration of political, cultural and economic practices in the world (Rothenberg 2003, p 1). The integration of the many systems in the world has made it easier for trading to flourish in the world making a big impact on the economies of the counties which are integrated into the globalization process. The Gulf cooperation countries have not been left behind in the globalization process. The formation of the Gulf cooperation made it easier for the countries in the cooperation to integrate into the world economy. Globalization has led to several impacts on the economies of the Gulf countries. They include:
Boosting trade – the main trading commodity of the gulf countries is oil. The economy of the Gulf copeartion contries has a great dependence on oil ( Fair Globalization 2008, p 18). The counties contribute the largest proportion of oil into the world supply, which explains the supply problems which affect the world when there is a problem in the Gulf countries for instance the war in Iraq. The formation of the cooperation has improved the trade relations between the Gulf countries and the rest of the world. The countries are able to sell their oil at an agreed price which is favorable to all the countries in the cooperation. In so doing, they have been able to control the oil prices in the world. The increased trade between the Gulf countries and the world has made a positive impact on the economies of the concerned countries (Yousif 2009, p 45).
Investment – globalization has led to a lot of investments in the Gulf countries. Due to the integration of economic, social and political systems in the world, more investors have found their way to the Gulf countries which are emerging economies. This is a major impact of globalization on the economy of a region (Fischer 2010, p 18). Investments made in the countries have boosted the GDP of the countries hence improving the economies of the relevant countries. There is a common saying that economic is cyclic; you tilt one sector of the economy and all the sectors tilt too. This has been the case in the Gulf countries. The effect of investments and earnings in the oil trade has resulted to the establishment of other investments in the countries which have contributed to the economic well being of the countries.
Globalization has also led to immigration into the Gulf countries. The emerging economies of the countries have resulted to creation of employment in the countries ( Daveri , Manasse &Serra 2011, P 17).Therefore, the countries have been able to fetch good brains and competent professionals from the broader world. The professionals use their skills and brains to boost the production of the sectors where they are employed hence leading to the improvement of the economy (Ali 1998, p 160). Other impacts of globalization on the economies of Gulf Cooperation countries include enhancement of good governance, introduction of good economic policies and the introduction of reforms in the relevant countries. As stated above, the countries were formerly faced with problems of bad governance but their integration in the world system has resulted to them adopting measures which have improved their governance hence resulting to their improved economies.
The research is theoretical and will make use of publications, journals, the internet and any other documented material to analyse the impact of globalization on the economies of the Gulf cooperation countries.
Ali A, 1998. Globalisation And Its Impact On The Economies Of OIC Countries And The Role Of The Private Sector, Journal Of Economic Cooperation Among Islamic Countries, vol. 19, no.1, pp 153-179
Daveri F, Manasse P &Serra D, 2011. The Twin Effects Of Globalization, Luca – D’Aglain – World Bank Project, vol.2, no, 4, pp 1-33
Fair Globalisation, 2008. Globalization And Its Impact, Fair Globalization, vol. 2, no. 3, pp10-25
Fischer S, 2010. Globalization and Its Challenges, Globalised Economy, vol. 5, no 7, pp 7-22
Rothenberg L, 2003. Globalization 101, the Three Tensions of Globalization, The American Forum for Global Education, vol. 1, no 176, pp 1-4
Yousif K, 2009. Oil Economies and Globalization: The Case Of The GCC Countries, World Economies, vol. 5, no. 2, pp 34-50.
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